Bendigo and Adelaide Bank continues to focus on wealth management business growth, a strategy that received a boost from the sale of its 7.8 per cent stake in IOOF.
Bendigo wealth and banking executive Marnie Baker said the sale reflected the evolving nature of the wealth management business.
“We are very focused on our wealth management business at the moment and the opportunity we have there to grow that business by supporting our retail customers,” Baker told InvestorDaily.
“We’re always open to any opportunities in relation to expanding, especially our financial planning or advice business. We will be looking at those as they become available.”
The company sold its 7.8 per cent stake in IOOF last week following a routine strategic company review.
Bendigo plans to invest the $110 million in proceeds, generated from the sale at $6.16 per share, into further growth of its wealth management business.
“It is not to go towards anything in particular except just to support future growth for the organisation, balance sheet growth,” Baker said.
She declined to disclose who the stake was sold to.
IOOF currently manages more than $1.3 billion of Bendigo’s funds under advice in the form of Bendigo Wealth’s full advice offering through the IOOF Pursuit platform, Bendigo Wealth’s low-cost super offering, SmartSuper, and Bendigo’s own staff superannuation plan.
