The bank says the acquisition will allow it to further grow its margin lending business, Leveraged Equities Limited, one of the longest established margin lenders in Australia.

Bendigo and Adelaide Bank managing director and chief executive Marnie Baker said the acquisition will strengthen Leveraged Equities' position as an industry leader in margin lending and enhance the scale of our existing operations.

"The portfolio we are acquiring is well established and primarily comprises retail customers which will complement Leveraged Equities' client base of professionals and clients under advice. We believe there is a strong future for margin lending in Australia, and this acquisition will create further opportunities for growth."

The portfolio being acquired includes about 11,900 customer facilities, and is expected to take the combined value of the bank's margin lending portfolio to more than $2 billion at completion, which is expected to be in the first half of calendar year 2023.

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The bank will pay an "immaterial premium" over book value for the portfolio, and says that given the relatively small size of the acquisition, it will be funded through the ordinary course of business operations.

Head of Leveraged Equities, Lily Elliott said the acquisition aligns with her organisation's growth strategy and ambition to maintain a strong market position.

"We pride ourselves on the level of service we provide. As the business grows, we look forward to continuing to deliver a high-quality solution as a trusted partner for customers who are just starting out on their investment journey, clients under advice and investment professionals."

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