Why is BEN down today? (4-feb-16), page-24

Hi Flash,

It was pathetic.

But if you want to be kind and use "disappointing "
That's ok.

So let's just have a look at it.

Of the 3 second tier banks
BOQ grew their business. Strongly
SUN grew their banking arm. Very satisfactorily.
BEN went backwards.

BEN does need to lift its game.
The merged staff from the Adelaide / Bendigo merger STILL have not been rationalised.
Their staff costs are way too high.

I'm more than happy for them to have the same or increased staff at BRANCH level, face to face with customers.
They would win more customers as a point of difference from the majors.
But there are far too many duplicated back room / head office staff .......many of whom are running around with very little to do. (In Adelaide and Bendigo)

The chairman, board, and CEO have paid lip service to reducing staff overheads for years, and never do it.

This was one of the catch cries of the merger...."economies of scale."

So after the merger they built a massive new head office in Adelaide as well as the one already in Bendigo ........plus Ig offices in Melbourne, Geelong.
Top heavy with management.
They have built an empire where the turnover /profit is going up over time, but not the earnings per share ( eps) at anything like the same rate.

And the eps is the true measure of shareholder benefit and value.
And this is what the board should be concentrating on......looking after the SHARE HOLDERS

Not management "feel good "...........profitless growth.

And they need to bring in someone with real business experience and a proven track record to head up and rev up their business banking section.......It's amateur hour.

On the brighter side.
I have felt for a long time their potential is excellent.
Which is why I am a holder.
And at today's price they are very attractive for yield.

But as a long time shareholder (and local Bendigo observer ) I am frustrated.

Cheers

bendigo