Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Bendigo Bank — H1 FY2004 Earnings Presentation
39 slides from Bendigo & Adelaide Bank's earnings presentation, Feb 16, 2004
Slide 1: Interim profit announcement 2004
Interim profit announcement : 2004 © Bendigo Bank
Slide 2: Presenters
Presenters — The financial result Craig Langford Chief Financial Officer ‘Strategy and outlook Rob Hunt Managing Director © Bendigo Bank
Slide 3: The financial result
: The financial result Craig Langford ~ Chief Financial Officer © Bendigo Bank
Slide 4: Building a sustainable performance
Building a sustainable performance Profit increased by 36% to $34.6 million Earnings per share increased by — 6.5 cents to 26.8 cents Interim dividend up 3.5 cents to 17.0 cents © Bendigo Bank
Slide 5: Performance summary
Performance summary $Millions Net Profit after Income T.ax Return on Average Assets |Return on. Average Equity ‘Earnings per Share - cents Expense to Income Ratio /1/2Year end Assets 1/2 Year-end Capital General Provision for doubtful debts Dec-01 19.5 0.54% 8.80% 16.8 73.50% 7,521 465_ 0.79% Dec-02
Slide 6: Operating profit after tax
Operating profit after tax — | ‘A$.Milfions —270..> _ ; : -
Slide 7: Net interest margin
Slide 8: Non-interest income - $73.3m
Non-interest income - $73.3m (At 31. Dec 2003) 33% Deposit A/C & transaction fees $24.2m | 16% Loan fees $12.0m 441% JV contributions $7.9m 47% Other $5.0m 7%. ~ Securitisation $4.9m 7% ..-Trustee. & service fees $4.8m 3% > Insurance Commissions $2.5m 16% - Commissions (primarily Wealth, Man.) $12.0
Slide 9: Operating expenses - $139m
Operating expenses - $139m (At 31 Dec 2003) Staff & related costs $68.4m Administration & other expenses $31.4m Information technology costs $12.2m Occupancy costs $11.2m “Fees & commissions: $6.9m Property, plant & equipment costs $7. Amortisation of goodwill $2.1im
Slide 10: e oO
© Bendigo Bank ® x c a e oO = e = & £ fs} oO x Cc 9°) mM > whew’. € © =y (bee D © Cc © = & © = s or Wealth Management | Elders Rural Bank Mm OL SP OR ON ost ontributions — Communi C ER A$-Millions
Slide 11: Efficiency ratio: Operating expenses/income
Efficiency ratio: Operating | expenses/income Sone
Slide 12: Total assets
Total assets — AS Millions: — ; : ; B00 a 12,888 ee 12,000 _- 10,000 8,000 6,000 4,000 2,000
Slide 13: Lending approvals
Lending approvals = “A$ Milions = eae - - —< A000; — SS 3,000. 2,000 1,000 & > ;
Slide 14: Retail deposits
Retaildeposis = = Ag Millions ; me soe - — 10,000 — oe 8,000. 6,000 = mea
Slide 15: Funds under management
Funds under management $Millions Dec-01 Dec-02 °° Dec-03 Sandhurst mortgage & cash funds 913.2°°1,104.10°.1,313.7 Sandhurst Industrial Share Fund 72.0.>- 223.5 346.4 Bendigo Superannuation Plan 90.0.» 130.2... 166.0 General Retirement Plan 51.5 50.2 54.6 Diversified funds 6.8 8.2 3.0 Premier Global
Slide 16: Commercial loans
Commercial loans (At 31 Dec 2003) 34%,» Property & business services 15%. Other : 12% «Agriculture, forestry .& fishing 12% ” Retail trade 7% Construction : 5%. Accommodation, cafes: & restaurants 4% Manufacturing 3%. Health & community service 3%... Transport & storage 3%: Cultural. & recreational
Slide 17: Loan portfolio
Loan portfolio = By purpose By security 3 —— Ag nna . we Ag Mons . | : — oo oS 80 ; : : : sth
Slide 18: Geographic spread
Geographic spread Loans ~. Deposits 2 4% TAS BEE 2% - TAS MM 5x ws MME 5% WA NO 3% GA Ws 2% SA @2) 14% .OLD (2) 45% OLD 2%. ° KOT 5%. OS/OTHER ME 12% NSW MM 11% NSW ia 60% vic a 60% vic DEC 03 : DEC 03 © Bendigo Bank
Slide 19: Core retail deposit base: Funding mix
Core retail depositbase: Funding mix —
Slide 20: Return on equity
Return on equity — Fe
Slide 21: Earnings per share
Earnings pershare cents. = ~ . oe ae Reet NOSES Ses . 30 —S | : = 25 20 SR 15 ee 10 = 0 es oe DEC 01 =o
Slide 22: Capital adequacy
Capital adeq uacy ae
Slide 23: Non-accrual loans
-Non-accrual loans A$ Millions .
Slide 24: Provision for doubtful debts
Provision for doubtful debts : = 60 : 57.8 oo oo 50 —— 40 “30
Slide 25: Asset quality
0.10 ‘Asset quality: oS Impaired loans / total 0.60 SESE 0.50 940-40 0.30 0.20
Slide 26: Strategy and outlook
: | Strategy and outlook Rob Hunt | Managing Director © Bendigo Bank
Slide 27: Consistent strategy - brand
Consistent strategy - brand Align strategy with culture and skills Create a unique style and value proposition Grow community capacity and therefore our relevance Expand our market share and coverage This is building the capacity of our markets and their inclination to buy from _us. © Bendigo Bank
Slide 28: Consistent strategy - growth
Consistent strategy - growth | : Revenue growth strategy Expand distribution network and options Forge alliances to secure new markets/skills Broaden product range (eg. expand Wealth Management) Improve our skills & capabilities Demonstrate consistent above-system growth In the past four years we ha
Slide 29: Consistent strategy - markets
Consistent strategy - markets Focus on quality customer service Community Bank, alliances, joint ventures (c-commerce) Enhancing capacity of buyers Increasing the relevance of the bank in each market : Growing a sustainable revenue base Securing future markets — 64 of 118 Community Bank branches are
Slide 30: Consistent strategy - balance sheet
Consistent strategy — balance sheet Built a strong, clean balance sheet Most developments have been expensed Strong provisioning and credit performance Proven ability to raise capital Strong capacity to fund growth opportunities The Company has never been in better shape. © Bendigo Bank
Slide 31: Improving performance
Improving performance Large increases in net profit for six consecutive reporting periods Return on equity... Dec.’00 7.3% Dec.’03 11.9% Earnings per share Dec.’00 16.2 cents Dec.’03 26.8 cents 28th best Australian company for sustainable shareholder returns over five years (Bulletin, Dec. 2003). ©
Slide 32: First-half highlights - financial
First-half highlights — financial Improved profit performance by 36% _ Increased EPS by 32% and dividend by 26% Strong growth in retail deposits, loans outstanding and managed funds Excellent margin reflects brand strength Strong asset quality performance Reaffirms a strong and consistent upward tre
Slide 33: First-half highlights - developments
First-half highlights - developments Became card acquirer and expanded card base Opened 18 new branches Bendigo Managed Funds topped $100 mil. $2 billion in funds under management and advice Continued strong growth in Elders Rural Bank and all alliance initiatives Recent investments are making stron
Slide 34: Looking ahead - investments
Looking ahead — investments Continue investment in revenue generation: - Branches - Cards - Business developers - Wealth Management business Community enhancement initiatives | - Community Bank and Community Telco - e-commerce - Lead On Strong demand for the Bendigo brand across Australia. © Bendigo
Slide 35: Looking ahead - investments new Community Bank branches in 2004
Looking ahead — investments 30 new Community Bank branches in 2004 Investment in new company owned branches e-banking enhancements continue Continued development of JVs and alliances Continued expansion of Wealth Management business. Revenue growth continues to outstrip expenses. © Bendigo Bank
Slide 36: Looking ahead - markets
Looking ahead — markets _ Economy remains strong Strengthening rural economies is an added plus Segments of the home loan market will slow, but we expect little adverse effect on Bendigo in second half Our dependence on residential home loans has reduced - Community demand for Bendigo expected to re
Slide 37: Looking ahead - performance
Looking ahead — performance Customer numbers will continue to grow strongly Above-system growth in balance sheet expected Newer branches will continue to fuel growth in volumes and revenues Anticipate continued improvement in key performance - ratios We expect our full-year profit to increase by aro
Slide 38: Looking ahead - performance
Looking ahead — performance Brand identity continues to drive strong demand Continued growth in national distribution network Revenues to grow as recent investments mature Strong growth in e-banking and Wealth Management revenues Continuing improvement in performance Balance sheet approach enhances
Slide 39: Interim profit announcement 2004
Interim profit announcement : 2004 © Bendigo Bank