Business Description:
Bendigo and Adelaide Bank Limited (BEN, formerly Bendigo Bank) was formed in November 2007 as the result of a merger of Bendigo Bank and Adelaide Bank. The principal activities of BEN are the provision of a range of banking and other financial services, including retail banking, mortgage distribution through third-parties, business lending, margin lending and a range of other activities.

Strategy Analysis:
Retail banking is built on the existing Bendigo franchises, focusing on the Community Banking network in population centres, which larger banks neglected. Wholesale mortgages and other innovative lending inherited through Adelaide Bank will continue being pushed through direct and indirect distribution channels. Current equity market weakness is exerting significant pressure on the margin lending growth initiative, but leveraging wealth management cross-sell opportunities remains a key focus. Acquisitions will likely focus on wealth management areas, with organic growth and merger acquisitions targeting the traditional retail banking business. The $130m acquisition of Bank of Cyprus Australia completed 1 March 2012 and complements BEN’s long standing community banking growth strategy. Bendigo and Adelaide Bank reported NPAT up 41% to $342.1m for the year ended 30 June 2011. Revenues from ordinary activities were $1.24bn, up 8.9% from last year. Diluted EPS was 86.4 cents compared to 62.9 cents last year. Net operating cash flow was $488.2m compared to $348.0m last year. The final dividend declared was 30 cents, taking the full year dividend to 60 cents compared with 58 cents last year. The Company reported results shows that support is being returned to the bank, and augurs well for the Company's earnings outlook and availability of funding in a market that the Company expects to remain volatile.