BNK paid a special dividend in July last year following the sale...

BNK paid a special dividend in July last year following the sale of Finsure to MA Financial buy hasn't paid any others.

BNK is the smallest Australian bank listed on the ASX. It is loss making and has relied on periodical capital raisings to comply with APRA's regulatory capital requirements. As banks grow their loan and deposit book, they need to build regulatory capital, which is typically done with retained profits, so until they start making some actual profit, dividends are not likely.

Based on the Appendix 4E for 30 June 2023, NTA was $1.03 per share yet they are trading well below this at current levels of $0.375. Two large shareholders in Duncan Saville and Kim Cannon, both just under 20% who one would suspect see this as a value play.

BNK is subscale, and it is difficult for small banks to compete with the majors with the amount of investment required in technology for things like apps and cyber as well as the never-ending regulatory changes that banks have to comply with (which all comes at a cost). Given BNK has traded at a discount to NTA for several years now, it really needs a buyer (in my view) who sees the quality of the distribution network that the CEO has built in order to bridge the gap between NTA and the current share price.