Bendigo buys a Mac portfolio
(9 January 2009 – Australia) Bendigo and Adelaide Bank announced the purchase of a A$1.5 billion margin lending loan portfolio from Macquarie Group for A$52 million.
The margin lending portfolio will come under the operations of Leveraged Equities, the margin lending business owned by Bendigo.
The purchase means Bendigo will further increase its position as one of the three largest providers of margin lending products in Australia, with more than $3.6 billion of loans under management.
The bank said that the acquisition will help Leveraged Equities to meet its long-held strategic goal of expanding into the fast growing financial adviser market.
The purchase also coincides with the signing of a three year white label distribution agreement with Macquarie Private Wealth.
The purchase will be funded through the issue of $52m of short dated convertible preference shares to Macquarie. Bendigo expects the acquisition to be earnings per share positive in its first year of operation.
Bendigo chief executive of Partner Advised Banking, Jamie McPhee, said that the bank sees a strong future for margin lending in Australia as an important strategy for its customers to be able to build a strong and diversified personal balance sheet.
The purchase means Bendigo will further increase its position as one of the three largest providers of margin lending products in Australia, with more than $3.6 billion of loans under management.
The bank said that the acquisition will help Leveraged Equities to meet its long-held strategic goal of expanding into the fast growing financial adviser market.
The purchase also coincides with the signing of a three year white label distribution agreement with Macquarie Private Wealth.
The purchase will be funded through the issue of $52m of short dated convertible preference shares to Macquarie. Bendigo expects the acquisition to be earnings per share positive in its first year of operation.
Bendigo chief executive of Partner Advised Banking, Jamie McPhee, said that the bank sees a strong future for margin lending in Australia as an important strategy for its customers to be able to build a strong and diversified personal balance sheet.
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