2411 words Bendigo and Adelaide Bank - Wikipedia

Bendigo and Adelaide Bank is an Australian financial institution, operating primarily in retail banking. The company was formed by the merger of Bendigo Bank and Adelaide Bank in November 2007.[4]

Bendigo and Adelaide Bank Limited
Public
Traded asASX: BEN
IndustryFinancial services
Founded1858
HeadquartersBendigo, Victoria, Australia
Key people
Marnie Baker (CEO)
Jacqueline Hey[1][2] (Chairman)
ServicesBanking, financial and related services
DecreaseA$376.8 million (2019)[3]
Total assetsIncreaseA$72.570 billion (2019)[3]
Total equityIncreaseA$5.631 billion (2019)[3]
Websitewww.bendigoadelaide.com.au
Bendigo Bank head office in Bendigo, Victoria, Australia

Before the merger, Bendigo Bank delivered its products and services through almost 900 outlets Australia-wide, including more than 160 company owned branches, 220 community owned Community Bank branches of Bendigo Bank, 100 agencies and 400 Elders outlets. The bank's branches are primarily in Victoria and Queensland. The merged bank now has over 400 branches, including 25 that came with the merger of Adelaide Bank.

National headquarters remain in the city of Bendigo, with a major office in Adelaide, South Australia and regional offices in Docklands, Melbourne and Ipswich, Queensland.

History and developmentEdit

The company started in 1858 as a fixed-term (terminating) building society to improve conditions in the Bendigo goldfields during the Victorian gold rush.

At seven years old, in 1865, the company restructured, taking the name Bendigo Mutual Permanent Land and Building Society, which incorporated in Victoria 11 years afterwards. It continued to expand its holdings when, in 1978, it merged with Bendigo and Eaglehawk Star, a building society established in 1901.

Further growth involved the acquisition of the building societies Sandhurst, in 1983, and Sunraysia, in 1985, a merger with Sandhurst Trustees Ltd and the acquisition of Capital and Compass building societies.

In 1982 BBS became the first financial institution in Australia to introduce successfully both Visa credit and debit cards.

1993 saw BBS receive a stockmarket listing. Its growth continued throughout the 90s when it acquired National Mortgage Market Corporation Limited in 1995, a mortgage-manager company focussed on loan introducers and brokers. In that year BBS converted to a bank with the name Bendigo Bank. In 1997, Bendigo Bank acquired Monte Paschi Australia from Banca Monte dei Paschi di Siena,[5] an Italian banking group, for AU$42.255M.[6] Monte Paschi Australia was renamed Cassa Commerciale Australia in the same year.[7]

Bendigo Bank's "Community Bank" program began in 1998—the first branches opened in the western Victoria towns of Minyip and Rupanyup on 26 June and the first metropolitan branch in the outer eastern suburb of Upwey on 19 October.

The late 1990s saw a further development when Bendigo Bank and Elders Australia formed Elders Rural Bank, a joint venture company focused on agribusiness and rural Australia. Bendigo Bank was also the first financial institution to introduce a mortgage offset account, now a standard banking product in Australia.

In 1999 the bank formed an alliance involving mutual shareholding with IOOF.

The bank received its operating licence in 2000 and absorbed the First Australian Building Society in Queensland, acquiring a new regional headquarters in Ipswich. That same year saw a A75 million dollars head office expansion in Bendigo.

In 2002 Bendigo Bank introduced the first "Green Loans" in Australia and formed "Community Sector Banking", a banking joint venture with the not-for-profit sector.

Three years later, Bendigo Bank built a regional headquarters on Harbour Esplanade in Melbourne, Docklands.

In 2007 Bendigo Bank rejected Bank of Queensland's merger/takeover proposal,[8] and merged with Adelaide Bank. The A4 billion dollars takeover was completed on 30 November.[4] Subsequently, share-holders voted to change the company's name to Bendigo and Adelaide Bank Limited, with the change taking effect from 31 March 2008.[9]

On 11 December 2008, Bendigo Bank's new headquarters in Bendigo was completed. The 20-6th Prime Minister of Australia, Kevin Rudd, was present at the opening.

On 16 December 2011, Bendigo Bank announced that it has reached agreement with the Bank of Cyprus Group to acquire its 100 per cent owned Australian subsidiary, Bank of Cyprus Australia Limited (BOCAL). The purchase will be for an estimated total consideration of A130 million dollars .[10] It has been renamed Delphi Bank.

In April 2013, Bendigo Bank's subsidiary 'Oxford Funding' rebranded as Bendigo Debtor Finance, offering independent credit assessments and cash-flow solutions to businesses on a national level.

In June 2014, the bank became the first in Australia to adopt an investment policy which shunned fossil fuel investments. "Specifically, the bank does not lend to companies for whom the core activity is the exploration, mining, manufacture or export of thermal coal or coal seam gas."[11]

On 1 March 2015, a group of credit unions diverged from Cuscal[12] and aligned with Bendigo and Adelaide Bank to form Alliance Bank.[13] The credit unions were AWA Credit Union/Mutual (Geelong, 1969),[14] Circle Credit Co-operative Limited (Deer Park, 1969),[15] Service One Credit Union (ACT, circa 1950),[16] BDCU (Berrima, 1963),[17] and in 2018 NOVA (Newcastle, 1964).[18] Alliance Bank maintains some autonomy, but conducts regulated banking activities through Bendigo and Adelaide Bank. They still market themselves under their original name suffixed with "Alliance Bank" and declare themselves agents of Bendigo and Adelaide Bank.

In 2015 Bendigo bank openly supported the building and funding of a mosque in Bendigo. While locals protested against both the mosque and the immigration Bendigo bank responded by closing the account of a group called Stop the Mosque who spoke out against the mosque. The bank chairman said that history showed Bendigo was an inclusive community and he believed that is the sort of place needed again, and bigotry and hate were not Bendigo's values.[19] In April 2014, after it closed the account, Bendigo Bank stated in closing the account that it only wants to do business with organisations that share its values. This drew criticism from a local councillor.[citation needed] The bank said that it values tolerance and inclusiveness, which are important parts of a strong community.[20]

Community Bank programEdit

Community Branch at Braidwood, New South Wales

Community Bank is an innovative franchise program in which the local community owns and operates a Bendigo Bank branch (which is separately incorporated) and Bendigo Bank provides all the banking infrastructure and support. The community company, after paying its branch running costs, shares any remaining profit with the Bendigo Bank.[citation needed] The program was a response to the massive closure of bank branches in rural areas. Bendigo Bank has since extended the program to areas with existing bank services.

Subsidiaries of Bendigo and Adelaide Bank include Rural Bank, Rural Bank ONE, Rural Finance Corporation of Victoria, Bendigo Debtor Finance (formerly Oxford Funding), LeveragedEquities, Sandhurst Trustees, Delphi Bank (formerly Bank of Cyprus Australia),[21] Bendigo Financial Planning, and Bendigo Bank Telco.

Bendigo and Adelaide Bank joint ventures with Community 21 in its Community Sector Banking project.

Bendigo and Adelaide Bank had acquired Wheeler Financial Services which was merged with Bendigo Financial Planning, and also acquired Southern Finance.[22]

See alsoEdit

ReferencesEdit

  1. ^ "Bendigo and Adelaide Bank Announces Jacqueline Hey as Next Chair". www.bendigobank.com.au. Retrieved 24 July 2020.
  2. ^ "New chair to take charge of Bendigo and Adelaide Bank board". Bendigo Advertiser. 30 May 2019. Retrieved 24 July 2020.
  3. ^ a b c "Annual Financial Report 2019 inches (PDF). Bendigo and Adelaide Bank Limited. 31 August 2019. Retrieved 18 May 2020.
  4. ^ a b "Bendigo Bank Merger information page". Archived from the original on 15 December 2007.
  5. ^ Ellis, Eric (3 January 2018). "Bendigo gives a lesson in community banking". Euromoney. Retrieved 4 November 2019.
  6. ^ "Bendigo and Adelaide Bank – Operational History – 1997 inches. The Australian Financial Review. Retrieved 4 November 2019.
  7. ^ Mayne, Alan (2008). "Neighbours". Building the Village: A History of Bendigo Bank. Wakefield Press. pp. 50–51. ISBN 978-1-86254-832-9.
  8. ^ "Bendigo Bank rejects takeover plan". ABC News. 24 April 2007. Retrieved 17 December 2016.
  9. ^ "Bendigo Bank and Adelaide Bank name change – Important notification to Bendigo Bank customers" (PDF). Bendigo Bank and Adelaide Bank Limited. Retrieved 17 December 2016.
  10. ^ "Bendigo Bank News". Archived from the original on 21 August 2014. Retrieved 6 January 2012.
  11. ^ Bendigo Bank executive Marnie Baker, Bendigo Advertiser, 7 June 2014
  12. ^ "Credit Union to Alliance Bank". www.alliancebankgroup.com.au.
  13. ^ "Alliance Bank's fifth Anniversary". www.alliancebankgroup.com.au.
  14. ^ "History of AWA". www.awaalliancebank.com.au.
  15. ^ "Circle Credit Co-operative Limited". Financial Services Directory.
  16. ^ "Our Story". www.serviceone.com.au.
  17. ^ "Berrima District Credit Union". Financial Services Directory.
  18. ^ "NOVA, a new Alliance Bank". www.alliancebankgroup.com.au.
  19. ^ "Bendigo and Adelaide Bank concerned about potential damage from anti-mosque campaign". ABC News. 11 November 2015. Retrieved 7 January 2016.
  20. ^ Simon Lauder (8 April 2014). "Bendigo Bank stands by decision to close account of anti-mosque group". ABC News. Retrieved 7 January 2016.
  21. ^ "Say hello to Delphi Bank". neoskosmos.com. Neo Kosmos. Retrieved 22 January 2015.
  22. ^ "Investors regain access to Southern Financial Group funds on Monday". The Standard. 22 December 2012. Retrieved 22 January 2015.

External linksEdit

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