Bendigo Bank to buy RACQ Bank retail assets
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The news: Regional lender Bendigo and Adelaide Bank has agreed to buy RACQ Bank's retail lending assets and deposits, comprising $2.7 billion in retail loans and $2.5 billion in retail deposits.
The numbers: Bendigo said the purchase price will be based on the book value of the transferring book at completion. The deal is expected to grow the lender's exposure to Queensland from 15% to 18%.
It has estimated migration and transaction costs of $25-30 million after tax, with the majority to be incurred prior to completion of the deal.
The context: The asset and liability transfer is expected to be completed during the first half of FY27. Bendigo said it will be funded from cash reserves and consume around 35 basis points of its CET1 capital.
What they said: "RACQ Bank's strong deposit franchise and member focus complements Bendigo Bank's own deposit franchise and longstanding focus on our customers and the community," said Bendigo's CEO and managing director Richard Fennell.
"The acquisition leverages our proven ability to efficiently integrate significant portfolios and is expected to drive improved shareholder returns through cost efficiencies and geographic diversification."
The source: ASX
