BEN has been the best performing major Australian bank in 2022 having rallied +11% year-to-date compared to say ANZ Bank (ANZ) at the other end of the spectrum which has fallen -21% – ANZ has managed to clear its “leftover” shares at $21.64, above its previous close, an exceptional performance after its $3.5bn capital raise to buy Suncorp’s banking assets.
- We believe BEN trading on 1x book value is cheap compared to say ANZ on 1.2x before the SUN deal but BOQ trading on 0.7x is the standout valuation play, especially if it’s now in BEN’s sights.
- Further corporate action appears necessary for the regional operators as they strive to remain viable in a game where size matters, a tie-up with AMP is another potential scenario for both BEN &/or BOQ.
MM prefers BOQ & ANZ at current levels
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