Bendigo and Adelaide Bank has agreed to acquire the ANZ investment lending portfolio, to further grow the bank’s margin lending business, Leveraged Equities, one of the leading and longest established margin lenders in Australia.
The acquisition of ANZ’s portfolio, valued at approximately $715 million, is expected to take the combined value of the bank’s margin lending portfolio to more than $2 billion at completion, by the first half of 2023.
The bank will pay an immaterial premium over book value for the high-return portfolio. The deal will be funded through the ordinary course of business operations.
“In line with our vision to be Australia’s leading bank of choice, the acquisition will strengthen Leveraged Equities’ position as an industry leader in margin lending and enhance the scale of our existing operations,” said Marnie Baker, Bendigo and Adelaide Bank managing director and CEO. “The portfolio we are acquiring is well established and primarily comprises retail customers, which will complement Leveraged Equities’ client base of professionals and clients under advice. We believe there is a strong future for margin lending in Australia, and this acquisition will create further opportunities for growth.”
“The acquisition aligns with our Leveraged Equities growth strategy and ambition to maintain our leading market position, reflected by the recent awarding of Leveraged Equities with Money Magazine’s, Margin Lender of the Year, for the third year in a row,” said Lily Elliott, head of Leveraged Equities. “We pride ourselves on the level of service we provide. As the business grows, we look forward to continuing to deliver a high-quality solution as a trusted partner for customers who are just starting out on their investment journey, clients under advice and investment professionals.”
