Why is the Bendigo Bank share price smashing the ASX 200 big four today?

Something interesting is going on with Bendigo Bank shares today.

Man in an office celebrates at he crosses a finish line before his colleagues.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It's been a pretty awful Thursday for the S&P/ASX 200 Index (ASX: XJO) so far today. At the time of writing, the ASX 200 has fallen by a nasty 1.12% to back under 7,180 points. But let's talk about the Bendigo and Adelaide Bank Ltd (ASX: BEN) share price.

Normally, when you see a substantial fall in the ASX 200 Index, you can usually bet that the ASX 200 bank shares are at least partially responsible.

That's because the big four banks – Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) – together account for around 19% of the entire ASX 200's weighting. As well as four out of the top six spots on the ASX 200.

Lo and behold, we can see that this is bearing out today. At present, CBA shares are down 1.03%. The Westpac share price has lost 0.61%, while NAB has slipped by 0.82%. ANZ leads the losses with its horrid 1.54% drop.

Yet the Bendigo Bank share price is currently in the green, presently enjoying a 0.68% boost up to $8.92 a share.

So what's going on with Bendigo Bank shares here? Why is this ASX bank share smashing the big four today?

Why is the Bendigo Bank share price smashing the other ASX 200 banks today?

Well, it's not clear, unfortunately. There was an announcement out of Bendigo Bank this morning. This related to the bank's $275 million batch of subordinated notes that were due on 30 November 2028. Bendigo Bank has decided to redeem and pay out all of these notes on 30 November, subject to regulatory approval.

It's not clear why the bank has taken this move, but arguably indicates that Bendigo Bank's finances are in a healthy place. So it's possible that this is influencing investors on the markets this Thursday.

There is another development to note as well. In addition to the Bendigo Bank share price's outsized performance today, we also saw a positive move with the Bank of Queensland Ltd (ASX: BOQ) share price during morning trade today. After being up a rosy 0.44% to $5.64 each, BOQ shares are current trading at $5.61.

We haven't had any news out of BoQ either. But the fact that these two smaller ASX banks are rising while the big four are dropping could indicate that investors are making a bit of a play here.

Both the Bendigo and BoQ share prices have been laggards over 2023 to date compared with the other big four banks. To illustrate, the Bendigo Bank share price remains down 8.84% in 2023 so far, while the CBA share price has lost 0.44%. NAB shares are down 3.1%, while ANZ has gained 7.3%.

So maybe investors think that the Bendigo Bank share price is due for an uptick. Whatever the reason, it's certainly been a good day to own Bendigo Bank shares.

Right now, the Bendigo Bank share price gives this ASX 200 bank share a dividend yield of 6.84%.

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

A young woman sits with her hand to her chin staring off to the side thinking about her investments.
Resources Shares

Should I switch my ASX 200 banking stocks for ASX 200 miners before earnings season?

The ASX 200 Index is dominated by Australia's bank and materials/mining sectors, which together account for around half of the…

Read more »

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.
Bank Shares

Here's when Westpac says the RBA will now cut interest rates

The RBA surprised everyone by keeping rates on hold last week. So, when will the next cut happen?

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Bank Shares

This is the ASX bank stock with the largest dividend yield right now

Looking to ASX bank stocks for dividend income right now?

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Bank Shares

ASX banking sector: Is it time to consider a regional bank?

The big 4 banks are widely considered to be overvalued.

Read more »

A person leans over to whisper a secret to a colleague during a meeting.
Bank Shares

Here are the latest growth forecasts for the CBA share price

Can the bank continue rising? Here are some expert views.

Read more »

A businessman presents a company annual report in front of a group seated at a table
Bank Shares

Earnings season predictions: Macquarie weighs in on the big 4 banks

What are the broker's predictions?

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Bank Shares

Major CBA investor reveals why he's all in

This investor described one major reason driving his investment in CBA shares.

Read more »

Young investor sits at desk looking happy after discovering Westpac's dividend reinvestment plan
Bank Shares

Invested $10,000 in Westpac shares 2 years ago? Guess how much you've already banked!

Atop their regular dividend payments, Westpac shares have enjoyed a strong two-year run.

Read more »