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Key points
- The Bendigo Bank share price is in the green, having gained 1.6% to trade at $8.72
- Its gain come amid news the bank is shaking things up, merging its rural and business banking divisions
- The unification will also bring about a number of executive changes
The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is outperforming the broader market on Tuesday amid news that the bank is combining its business and rural divisions to fast-track growth.
As part of the unification, Bendigo Bank is shaking up its executive team, with a new role to be created and new titles handed out.
At the time of writing, the Bendigo Bank share price is $8.72, 1.63% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.2% while the All Ordinaries Index (ASX: XAO) has gained 0.28%. Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) is recording a 1.7% surge.
Let's take a closer look at today's news from the ASX 200 bank.
Bendigo Bank share price gains amid major division shake up
The Bendigo Bank share price is in the green after it announced it will be combining its Rural Bank and Business Bank businesses into one division.
Following the merger, the two businesses will retain their individual brands and will be led by a chief customer officer for the business and agribusiness division – a position the bank is on the hunt to fill.
The change will allow the bank to scale up its services and invest in its future. Bendigo Bank managing director Marnie Baker commented on the changes, saying:
Both the Rural Bank and Business Banking businesses have been positive growth and transformation stories for us. Bringing the businesses together will help us fast track our transformation agenda and achieve our goal of becoming a bigger, better, and stronger bank for our customers and the communities we serve.
As part of the move, Business Bank executive Bruce Speirs has been appointed to the new role of chief operating officer.
Meanwhile, chief customer officer of consumer banking Richard Fennell will take on the role of acting chief customer officer of business and agribusiness.
Rural Bank CEO Alexandra Gartmann has decided to leave her 6-year tenure as of today.
The bank is expected to release its results for the first half of financial year 2022 on 14 February.
ASX 200 banks surging higher on Tuesday
The Bendigo Bank share price is far from alone in its gains today. In fact, nearly all its ASX 200 financials peers are in the green on Tuesday.
The AMP Ltd (ASX: AMP) is the best performing banking stock today, boasting a 5% gain.
Meanwhile, the Bank of Queensland Limited (ASX: BOQ) share price is outperforming that of Bendigo Bank, having increased 2.2%.
Of the big 4, National Australia Bank Ltd. (ASX: NAB) is leading with a 2.6% gain.
Those of Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), and Australia and New Zealand Banking Group Ltd (ASX: ANZ) are up 1.1%, 0.9%, and 0.8% respectively.
And if one is to count Macquarie Group Ltd (ASX: MQG) as a big bank – which, by valuation, it is – it has bested its peers with its 3.2% boost.
