Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Macquarie conference 2012
13 slides from Bendigo & Adelaide Bank's conference presentation, May 4, 2012
Slide 1: Managing through uncertain times
For personal use only Managing through uncertain times Macquarie conference 2012 Richard Fennell – Chief Financial Officer May 4, 2012 1
Slide 2: Disclaimer
This document is a presentation of general background information about the Group’s activities current at the date of the presentation. It is information in a summary form and does not purport to be complete. It is to be read in conjunction with the Bank’s half year results filed with the Australian
Slide 3: A way of doing business
For personal use only Foundations Strategy Performance • Customer • Business model • Long-term growth engagement • People • Low risk balance • Funding and liquidity • Technology sheet • External ratings • Stakeholder • Capital balance A way of doing business 3
Slide 4: Funding
Funding For personal use only • We remain self-sufficient – Deposit led strategy – No government guaranteed rollover risk – Opportunistic view of RMBS, covered bonds and term wholesale • Leverage core strengths – Customer engagement – Distribution and partnerships • Pricing reflects value propositio
Slide 5: Margin
Margin For personal use only • Return to recent average NIM • Aided by: – Mortgage rate increase (15 bps) – Term deposit repricing – Active hedging strategy • 50 bps cash rate reduction will have a similar lag affect Foundations 5
Slide 6: Liquidity
Liquidity For personal use only • Appropriate and conservative liquidity buffers • Preparing for Basel III changes • Internal RMBS provides additional contingent liquidity Foundations *Source: Company disclosure. As at September 2011 for NAB, December 2011 for CBA, March 2012 for ANZ and WBC, and Fe
Slide 7: Risk
• Provisioning reflects conservative low risk nature of portfolio, prudent underwriting standards and benign bad For personal use only debt experience Risk Source: Company disclosure 7
Slide 8: Capital
Capital For personal use only • S&P methodology reflects low risk and sound underwriting standards across our businesses • Potential for further efficiency (T1 and T2) • Regulatory capital post BOCA acquisition and SPP – Tier 1 ratio of approx 8.52% – Core Tier 1 ratio of approx 7.65% • Basel II adv
Slide 9: Vision supported by people
Vision supported by people For personal use only • Superior and improving staff advocacy and engagement measures – 93% are proud of the work they do for BEN – 88% of staff are proud to work for BEN – 77% would recommend BEN as a great place to work – 17% improvement in overall engagement since 2010
Slide 10: Vision supported by technology
Vision supported by technology Retail banking and infrastructure For personal use only • Technology spend focused on customer interface – Internet banking – CRM Telecommunications and – Application development connectivity • 24/7 processing • Incremental investment in customer connectivity Payment s
Slide 11: Business model – providing for growth
Business model – providing for growth For personal use only Continued above system growth • Growth despite the drag effect of margin lending • Not a price-led strategy • Leveraging relatively immature and growing distribution network • Inorganic and organic opportunities Strategy *Source: APRA stati
Slide 12: Opportunities
Opportunities For personal use only • BOCAL acquisition • Small financial planning groups • Rural Bank / Australia Post distribution • MySuper product (Bendigo SmartStart Super) • SMSF offering Non-organic and organic growth 12
Slide 13: Summary
Summary For personal use only • Strong balance sheet, asset quality and funding position • BEN continues to have high customer advocacy and staff engagement • Continue to invest in opportunities as they arise • Long term view to doing business • Overall market conditions remain challenging Outlook 1
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