Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Debt Investor Presentation (April 2015)
28 slides from Bendigo & Adelaide Bank's debt investor presentation, Apr 27, 2015
Slide 1: Convertible Preference Shares 3 Offer and BPS Reinvestment Offer
For personal use only Bendigo and Adelaide Bank Convertible Preference Shares 3 Offer and BPS Reinvestment Offer 27 April 2015
Slide 2: Important notice
This presentation has been prepared by Bendigo and Adelaide Bank Limited (ABN 11 068 049 178, AFSL 237879) (“BEN”) in relation to the offer of Convertible Preference Shares 3 (“CPS3”) in Australia (the “Offer”). The Offer is made pursuant to a prospectus under Part 6D.2 of the Corporations Act 2001
Slide 3: CPS3 Offer overview
CPS3 Offer CPS3 • Bendigo and Adelaide Bank (“BEN”) Convertible Preference Shares 3 (“CPS3”) Offer size • $200m, with the ability to raise more or less For personal use only Use of proceeds • The CPS3 will qualify as Additional Tier 1 Capital and the proceeds may be used to fund the redemption of BP
Slide 4: BPS Reinvestment Offer
BPS Reinvestment Offer Reinvestment Offer • BEN intends to redeem its existing Bendigo Preference Shares (“BPS”) on 15 June 2015 For personal use only • BPS trade on the ASX under the code “BENPB” Key details • Eligible holders of BPS may elect to have some or all of their BPS redemption proceeds (i
Slide 5: Bendigo and Adelaide Bank overview
For personal use only Bendigo and Adelaide Bank overview Bendigo and Adelaide Bank overview 5
Slide 6: Bendigo and Adelaide Bank
Bendigo and Adelaide Bank • Australia’s fifth-largest bank 526 branches For personal use only • More than 90,000 shareholders • Over 5,000 staff 1 4 • Market capitalisation of $5.5bn1 • A multi-brand strategy with four main 51 46 business segments: Retail Banking, Third 3 43 Party Banking, Bendigo W
Slide 7: Unique and valued customer proposition
Unique and valued customer proposition Ranked number one ASX listed Bank for Retail and For personal use only Business customer satisfaction1,2 Business bank of the year3 for 2011, 2012, 2013 and 2014 Voted one of Australia’s most trusted brands4 Listed in BRW’s Top 50 Innovative Companies f
Slide 8: Positioned for a fast changing environment
Positioned for a fast changing environment Economic Market For personal use only - Employment - Low growth - Low interest rate - Competitive dynamics - Confidence - Consumer propensity to reduce debt - Ageing population - Level playing field - Continued wealth investment - Customer advocacy and staf
Slide 9: Half year result
Half year result For personal use only Financial performance - statutory profit after tax Financial performance - cash basis earnings Statutory profit after tax $227.3m Cash earnings of $217.9m Benefit from tax issue finalisation and Cuscal investment Cash earnings per share 48.1¢ Interim
Slide 10: Cash earnings have grown over time
Cash earnings have grown over time For personal use only Financial performance 10
Slide 11: Flexible funding structure
Flexible funding structure Leveraging core strengths of the retail brand and For personal use only network $600m RMBS issue in December 2014 Strong growth in at-call across a range of Retail deposit products Basel III liquidity transition successfully completed Financial overview 11
Slide 12: Strong capital position
Strong capital position Basel III CET1 ratio increased to 8.14% for the period For personal use only ending 31 December 2014 Total capital increased to 12.19% for the period ending 31 December 2014, with $292m of additional Tier 1 capital issued in October $600m RMBS provided capital and fundi
Slide 13: Continued investment in Basel II & new technology
Continued investment in Basel II & new technology Three streams complete For personal use only Business banking back book re-rating undertaken Models show low risk profile External validation of models underway FSI recommendations impact unclear Capitalised software balance increased pri
Slide 14: Bad and doubtful debts
Bad and doubtful debts Portfolio remains well secured, with low LVR’s For personal use only RFC acquisition resulted in $8.5m increase in GRCL and $3.2m increase in Collective provision, as expected from due diligence Bad and doubtful debts expense was $30.1 million, 1 down 29.5% on the prior
Slide 15: Arrears – days+
Arrears – 90 days+ For personal use only Financial overview 15
Slide 16: Great Southern
Great Southern The Supreme Court of Victoria approved the terms of For personal use only settlement of all class actions brought by investors in Great Southern managed investment schemes Borrowers acknowledged that their loan deeds are valid and enforceable BEN waived accrued but unpaid defaul
Slide 17: CPS3 Offer
For personal use only CPS3 Offer CPS3 Offer 17
Slide 18: Dividends
Dividends For personal use only Dividends • Dividends on CPS3 are preferred, discretionary, non-cumulative floating rate payments • Dividends on CPS3 are scheduled to be paid semi-annually in arrears subject to certain Dividend Payment Tests • Dividends are expected to be fully franked Dividend Rate
Slide 19: Optional Exchange Date
Optional Exchange Date For personal use only Optional Exchange • BEN may choose to Exchange all or some CPS3 on issue on the Optional Exchange Date which is 15 June 2021 Exchange • Subject to APRA’s prior written approval and provided certain conditions are satisfied, BEN may Exchange CPS3 via: • Co
Slide 20: Mandatory Conversion
Mandatory Conversion For personal use only Mandatory • The Mandatory Conversion Date is 15 June 2023 provided that all of the Mandatory Conversion Conversion Conditions are satisfied • On the Mandatory Conversion Date, Holders will receive approximately $101.011 per CPS3 worth of Ordinary Shares, un
Slide 21: Capital Trigger Event and Non-Viability Trigger Event
Capital Trigger Event and Non-Viability Trigger Event Capital Trigger Event • A Capital Trigger Event occurs when BEN determines, or APRA notifies BEN in writing that it believes that either or both of Bendigo and Adelaide Bank’s Common Equity Tier 1 Capital Ratio or For personal use only Bendigo an
Slide 22: Other early Exchange or Conversion
Other early Exchange or Conversion For personal use only Other early Exchange • BEN may choose to Exchange all or some CPS3 following the occurrence of a Tax Event or a or Conversion Regulatory Event (subject to certain • BEN may choose to Convert all (but not some) CPS3 after an Acquisition Event c
Slide 23: Level 2 Common Equity Tier 1 Capital Ratio
Level 2 Common Equity Tier 1 Capital Ratio For personal use only Level 2 common equity tier 1 ratio1,2 • Bendigo and Adelaide Bank’s Level Balance sheet 2 Common Equity Tier 1 Capital 9% strength Ratio as at 31 December 2014 on a 8.73 % Basel III basis was 8.14% 8.14 % 8.02 % 8% 7.77 % 7.82 % 7.67 %
Slide 24: Key risks
Key risks1 Key risks associated with investing in CPS3 Not deposit liabilities • CPS3 are not deposit liabilities of Bendigo and Adelaide Bank, are not protected accounts for the For personal use only purposes of the depositor protection provisions under the Banking Act and are not guaranteed by any
Slide 25: Key risks
Key risks1 Key risks associated with investing in CPS3 It is not certain whether • It is uncertain whether and when Exchange may occur and, subject to certain conditions, CPS3 may be For personal use only and when CPS3 may be Converted, Redeemed or Resold on the Optional Exchange Date or early due t
Slide 26: Key dates
Key dates Date for determining Eligible Securityholders Monday, 20 April 2015 For personal use only Lodgement of the Prospectus with ASIC Monday, 27 April 2015 Bookbuild to determine the Margin Friday, 1 May 2015 Announcement of the Margin Friday, 1 May 2015 Lodgement of the replacement Prospectus w
Slide 27: Key dates – BPS Holders
Key dates – BPS Holders Record date for determining Eligible BPS Holders for the For personal use only Reinvestment Offer Monday, 20 April 2015 Record date for BPS Dividend Friday, 22 May 2015 Last day of trading for BPS on ASX Tuesday, 2 June 2015 Closing date for the Reinvestment Offer 5:00pm, Fri
Slide 28: Contact details
Contact details Bendigo and Adelaide Bank Arranger and Joint Lead Manager Joint Lead Manager For personal use only Richard Fennell Michael Cluskey Duncan Beattie Chief Financial Officer Phone: (03) 9679 1138 Phone: (02) 9003 8358 Phone:(08) 8300 6200 Mobile: 0412 888 930 Email: richard.fennell@bendi
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