BKI Investment Company portfolio manager Tom Millner says bank stocks are undervalued and that the fallout from the Hayne royal commission could provide a good buying opportunity.

The listed investment company's full-year results released on Wednesday showed it is cashed up and has the firepower to buy, with its net operating result rising 5.8 per cent to $44.2 million. Net profit fell 1.4 per cent to $45 million. Earnings per share before special dividend income rose 2.5 per cent, from 6.93¢ to 7.1¢.