Home loan mortgage wholesale lender Adelaide Bank in merger talks with community bank Bendigo Bank
22/04/2012 
Comments Off
Adelaide Bank shareholders will need to approve a planned merger with the larger Bendigo Bank.
The boards of the Adelaide and Bendigo banks have announced plans to merge.
[Bendigo Bank is a regional community bank player, and Adelaide Bank is Australia's wholesale mortgage lender player, with 90 percent of its home loans done outside South Australia.]
The merger announcement came after both banks revealed record profits this morning.
Adelaide Bank has grown its full-year earnings by 7 per cent to just over $100 million, while Bendigo Bank has reported a 4 per cent rise to $122 million.
They say the merger will create a unique customer and partner focused financial services organisation.
However, the deal will need approval by Adelaide Bank shareholders at a meeting expected to be held in November.
Adelaide Bank shareholders would receive 1.075 Bendigo Bank shares for every Adelaide Bank share.
It is proposed to change the name of the merged group to “Bendigo and Adelaide Bank Limited”.
The name change would not impact on branding.
The Bendigo Bank rejected a merger offer from the Bank of Queensland earlier this year.
Source: ABC
Rick Adlam has been helping clients with home loan finance since 1985 when he was home consultant with AV Jennings. Rick started Equity Home Loans in 1996 to help homeowners become property investors. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers.
|
Incoming search terms for the article:
Comments are closed.