Australia's Bendigo and Adelaide Bank has offloaded its stake in the wealth management firm IOOF Holdings.

Bendigo and Adelaide Bank, the Australian financial services firm, has sold its stake in IOOF Holdings, the wealth management company, for A$110 million ($116 million).

The 7.8 per cent holding was sold at A$6.16 per share and is expected to improve Bendigo and Adelaide Bank's statutory earnings by around A$40 million. It is also expected to boost the company's Core Tier 1 capital by 13 basis points.

The sale reflects the evolving nature of its wealth management business, the firm said in a statement. IOOF Holdings currently manages some A$1.3 billion of Bendigo's funds under advice through the Bendigo Wealth offering under the IOOF Pursuit platform. Both firms expect to engage in more deals to strengthen their relationship in the future.

Bendigo and Adelaide Bank was formed in 2007 as a result of a merger between Bendigo Bank and Adelaide Bank. Its banking and wealth management services are provided by its retail arm, Bendigo Bank.