Bnk Banking Corporation Limited · ASX:BBC
Bnk Banking — Investor Presentation (April 2019)
22 slides from Bnk Banking's investor presentation, Apr 9, 2019
Slide 1: BNK Banking Corporation Limited Investor Presentation
For personal use only BNK Banking Corporation Limited Investor Presentation April 2019
Slide 2: Disclaimer
Disclaimer For personal use only This presentation contains certain forward looking statements with respect to the financial condition, results of operations, business plans and objectives of management. All such forward‐looking statements involve known and unknown risks, significant uncertainties,
Slide 3: Executive Summary: Unique business combination
Executive Summary Unique business For personal use only combination • Diversified financial services company following merger with Finsure in Sept 2018, recently renamed BNK Banking Corporation Limited • Two complementary divisions underpinned by established intellectual property • Banking: BNK Bank
Slide 4: Proud operating history
Proud 37 year operating history For personal use only Business established as Finsure Finsure acquires Pioneer Goldfields Money Goldfields Credit Union acquires Mortgage Services merges with LoanKit Finsure 2012 2015 2018 2019 MAY JAN MAR 1982 2013 2016 2018 OCT SEPT Goldfields Credit Union Finsure
Slide 5: Key Financial and Operational Highlights – 1H19
Key Financial and Operational Highlights – 1H19 For personal use only KEY OPERATIONAL $13.7m $1.6m 24% TRANSACTION ACCOUNT 22% 91% METRICS PRO FORMA PRO FORMA DEPOSIT MIX HQLA (LIQUIDITY) COST TO INCOME NET REVENUE UNDERLYING NPAT RATIO % RATIO (C:I%) Increased by +33% in 1H19 Sound liquidity positi
Slide 6: Merged Infrastructure
Merged Infrastructure For personal use only Banking Mortgage Aggregation Loan Book ▪ ~$175m on balance sheet ▪ ~$36bn (as at 31 Dec 18) ▪ ~$2.3bn off balance sheet ▪ Deposit accounts, personal loans, mortgages ▪ 1,581 Loan writers (as at 31 Dec 18) ▪ Direct and wholesale ▪ Operate under range of fee
Slide 7: Merger creates a unique mortgage marketplace
Merger creates a unique mortgage marketplace For personal use only Strategic OPERATIONAL GROWTH CUSTOMERS Imperative FOUNDATIONS DRIVERS • Agile: can respond quickly to • Develop easy to use and Increase distribution VERTICALLY INTEGRATED GROUP evolving customer needs understand products capacity an
Slide 8: Banking Business
Banking Business On Balance Sheet Loans ($m) Off Balance Sheet Loans ($b) 2.3 171 175 2.2 For personal use only 157 166 • Goldfields Money Limited re-named as BNK Banking Corporation Limited (February 136 2019) 1.5 1.5 1.5 • Provides simple and easy to understand deposit accounts, personal loans and
Slide 9: Aggregation Business
Aggregation Business For personal use only Total Loan Writers Total Loan Settlements ($b) • One of the strongest distribution networks in Australia, accounting for ~1 in 8 1,581 12 of all new loans written in the mortgage broking market 1,435 1,202 10 10 9 • Provides complete solution to loan writer
Slide 10: Market Share
Market Share For personal use only Residential Settlements Outstanding Residential Loans 15 40 10.5% 2.5 18.5% 0.4 18.8% 2.5 0.2 3.9% 0.3 30 23.1% 1.7 10 1.5 0.3 20 12 31.8 35.5 5 10.1 10.1 25 ($bn) 10 19.1 ($bn) 5.7 0 0 FY16 FY17 FY18 JUL 18 to NOV 18 FY16 FY17 FY18 1H19 Historical Aggregation Book
Slide 11: Market Share
Market Share For personal use only National loan writer population Percentage of Mortgages Written by Brokers 10 20000 60% 1,581 9.5 1,397 18000 1,133 58% 16000 9 935 14000 56% 8.5 12000 54% 8 10000 % 15,390 8000 52% 7.5 14,876 13,444 6000 7 50% 4000 DATA UNAVAILABLE 6.5 2000 AT REPORTING 48% DATE 6
Slide 12: Key Profitability Indicators
Key Profitability Indicators For personal use only Percentage of 1H19 Key Performance Indicators Revenue Type Description Nature of Revenue 1H19 KPI Performance Net Revenue* (%) (KPI’s) ▪ On-balance sheet loans ▪ $175m Dec18 spot balance On-balance sheet lending Monthly net interest margin 14% Recur
Slide 13: Growth Strategy: Balancing Investment and Profitability
Growth Strategy: Balancing Investment and Profitability STAGE FOUR For personal use only STAGE THREE ACCELERATED PORTFOLIO GROWTH DISCIPLINED WE ARE PORTFOLIO STAGE TWO HERE GROWTH STRATEGIC STAGE ONE MERGER STANDALONE BUSINESS 4 3 2 • Build scale by continually leveraging Finsure distribution netwo
Slide 14: Longer-term Growth Opportunities
Longer-term Growth Opportunities For personal use only • Regulatory changes (e.g. open banking) supports growth in lending book • Disciplined capital deployment and funding source diversification • Non-operating holding company structure (NOHC) application • API-enabled partnering to broaden product
Slide 15: Appendix
For personal use only Appendix
Slide 16: Board Of Directors
Board Of Directors For personal use only Simon Lyons Peter Wallace Derek La Ferla Managing Director Chairman & Non Executive Director Deputy Chairman & Non Executive Director Mr Lyons was appointed Chief Executive Officer on 18 January 2016 and Mr Wallace was appointed a director in August 2014. He
Slide 17: Board Of Directors
Board Of Directors For personal use only John Kolenda Peter Hall Don Koch Executive Director Non Executive Director Non Executive Director (from June 2019) Mr Kolenda was appointed a Director on 13 March 2018. Mr Kolenda is the Mr Hall was elected as a Director in November 2015 and is an experienced
Slide 18: Our Executive Team
Our Executive Team For personal use only Jussi Nunes Allan Savins Simon Bednar David Maher Steve Ellis Group Chief Financial Officer GM - Banking & Wholesale GM Aggregation Head of Marketing & Direct Sales Chief Risk Officer Jussi joined Goldfields Money/Finsure as Group Allan has over 35 years’ exp
Slide 19: 1H19 Financial Results
1H19 Financial Results For personal use only * Financial Highlights $AUD m 1H19 1H18 1H19 Var % Proforma Reported Reported REVENUE & PORTFOLIO PERFORMANCE Key Financial Metrics Key Comments Net Upfront Commission 2.4 - 1.6 n/a Net Trail Commission 6.8 - 5.0 n/a • Reported results comprise full six m
Slide 20: 1H19 Financial Results
1H19 Financial Results For personal use only * OPERATING EXPENSES Operating Expenses 1H19 1H18 1H19 Var % $AUD m Proforma Reported Reported Key Comments Key Expense Categories • Overall cost increase supporting continued business growth, through Employee Expense 7.8 1.1 5.6 lge investing in people,
Slide 21: 1H19 Financial Results
1H19 FINANCIAL RESULTS For personal use only ASSETS 1H18 1H19 BALANCE SHEET $AUD m Reported Reported Cash and Investments 57.7 67.5 Key Comments Loans and advances 165.7 175.8 NPV asset - 227.8 • Lending assets show healthy y-o-y growth of +6% whilst maintaining strong credit Other assets 3.7 61.3 q
Slide 22: Contact
For personal use only CONTACT Simon Lyons Managing Director 0417 178 325 Simon.Lyons@bnk.com.au