BEN Investor Update including RACQ Bank Book Acquisition
| Stock | Bendigo and Adelaide Bank Ltd (BEN.ASX) |
|---|---|
| Release Time | 4 Dec 2025, 8:19 a.m. |
| Price Sensitive | Yes |
Bendigo Bank to Acquire RACQ Bank's Retail Assets
- Bendigo Bank to acquire RACQ Bank's retail lending assets and deposits
- Acquisition expected to contribute positively to Bendigo Bank's 2030 ROE target
- Acquisition to be funded from cash reserves and consume ~35bps of CET1 capital
Bendigo and Adelaide Bank (ASX:BEN) has announced an agreement to acquire RACQ Bank's retail lending assets and deposits, subject to regulatory approvals. The asset and liability transfer is expected to be completed during 1H27. The acquisition will be completed at book value and will be funded from cash reserves, consuming approximately 35bps of CET1 capital. The acquisition of the retail lending assets and deposits from RACQ Bank, with over 90,000 customers, aligns with Bendigo Bank's strategy and is expected to contribute positively to the bank's 2030 ROE target. The acquisition provides strategic benefits, including an optimized deposit base, productivity improvements through Bendigo Bank's simplification to one core banking system, and sustainable growth by increasing geographic diversity. The financial impacts include a purchase price based on the book value of the transferring book, net interest income of approximately $50-$55 million, estimated incremental cost to service the transferring book of $12-$14 million before tax, and estimated migration and transaction costs of $25-$30 million after tax. The transaction is expected to be ROE and cash EPS accretive, with a 35-40bps ROE and 4-5cps cash EPS increase (annualized). Customer migration to Bendigo Bank products and core banking system will occur at completion, and a strategic referral agreement will commence post-completion.
The acquisition is expected to contribute positively to Bendigo Bank's 2030 ROE target. The transaction is expected to be ROE and cash EPS accretive, with a 35-40bps ROE and 4-5cps cash EPS increase (annualized).
The acquisition of RACQ Bank's retail lending assets and deposits aligns with Bendigo Bank's strategy and is expected to drive improved shareholder returns through cost efficiencies and geographic diversification.