Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Debt Investor Presentation (September 2012)
28 slides from Bendigo & Adelaide Bank's debt investor presentation, Sep 24, 2012
Slide 1: Convertible Preference Share Offer
For personal use only Bendigo g and Adelaide Bank Convertible Preference Share Offer 24 September 2012 1
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 (“CPS”) in Australia (the “Offer”). The Offer is made pursuant to a prospectus under Part 6D.2 of the Corporations Act 2001 (Ct
Slide 3: CPS Offer
CPS Offer • Bendigo and Adelaide Bank (“BEN”) today announced an offer of convertible preference shares (“CPS”) For personal use only • The Offer is to raise $125m, with the ability to raise more or less • CPS will qualify as Additional Tier 1 Capital under APRA’s Basel III capital adequacy framewor
Slide 4: RPS Reinvestment Offer
RPS Reinvestment Offer • BEN intends to redeem BEN’s existing Reset Preference Shares (“RPS”) on 1 November 20121 For personal use only • Eligible holders of RPS may elect to have some or all of their RPS redemption proceeds (i.e. $100 per RPS)) to be applied pp to the Application pp Payment y for C
Slide 5: FY12 Results Overview
For personal use only FY12 Results Overview Bendigo and Adelaide Bank Overview 5
Slide 6: Bendigo and Adelaide Bank
Bendigo and Adelaide Bank • A leading Australian regional bank 500 branches For personal use only • More than 82,000 shareholders • Over 4,000 staff 1 4 • Market capitalisation of $3.1bn1 50 46 • A multi multi-brand brand strategy with three main business 3 42 segments: Retail Banking, Wealth and Th
Slide 7: FY12 Results
FY12 Results Our result For personal use only Financial performance • Statutory profit after tax $195.0m - statutory profit after tax • Statutory profit after tax before specific items $312.0m • Statutory earnings affected by $95.1m goodwill write-down in wealth cash generating unit in 1H12 • Full y
Slide 8: Financial overview
Group performance • EPS metrics impacted by December 2011 capital raising and share h purchase h plan l iin M March h 2012 For personal use only • Dividends maintained at 30 cents • Steady cash basis earnings Financial overview 8
Slide 9: Funding remains a strength
Funding remains a strength • N G No Governmentt Guaranteed G t d wholesale h l l ffunding di For personal use only Financial overview 9
Slide 10: Retail deposits
Retail deposits • Term deposits priced to manage liquidity • Successful growth and retention strategies in place For personal use only • Not a price leader – value proposition driven • Term deposit retention rate consistently above 80% $18bn $11bn Financial overview Source: Company data 10
Slide 11: Capital
Capital • • Material improvement in Tier 1 capital ratios over the reporting period 30 June 2012 Common Equity Tier 1 Ratio approx 7.67% • 30 June 2012 adjusted Common Equity Tier 1 Ratio after capital initiatives approx 8.09% 8 09%1 • Following redemption of RPS and issue of CPS, pro-forma Tier 1 r
Slide 12: Provisioning has grown and remains conservative
Provisioning has grown and remains conservative • Provisioning reflects conservative low risk nature of portfolio portfolio, prudent underwriting standards and benign bad debt experience For personal use only • Impaired assets flat • Economic overlay increased to $5 5m $5.5m Total provisions and res
Slide 13: Total provisions and reserves for doubtful debts
Total provisions and reserves for doubtful debts ($m) • Total provisions increased $14.5m over the past For personal use only six months • p Rural Bank specific p provisions have increased to $38.9m (Jun-12) vs $33.7m (Dec-11) • Great Southern represents $20.7m of total provisions • Collective reduc
Slide 14: Robust foundations for volatile times
Robust foundations for volatile times Customer satisfaction1 100% • Continued maturation of Community Bank® 89.5% 90% and retail network For personal use only 80% 78.0% 77.9% 77.5% 76.4% • Opportunities in Bendigo Wealth 70% • Rural Bank recovery 60% • S&P rating upgrade in the past 12 months 50% •
Slide 15: Community Bank footings growth
Community Bank® footings growth Community Bank® loans Community Bank® deposits Community Bank® footings For personal use only Strategy and outlook 15
Slide 16: CPS Offer
For personal use only CPS CPS Offer 16
Slide 17: Dividends
Dividends Dividends Dividends on CPS are preferred, discretionary, non-cumulative payments based on a floating rate For personal use only Dividends on CPS are expected to be fully franked Dividends are scheduled to be p paid semi-annually y in arrears,, subject j to the Payment y Tests Dividen
Slide 18: Optional Exchange
Optional Exchange Optional BEN may choose to Exchange all or some CPS on issue on the Optional Exchange Date (13 December 2017) For personal use only Exchange Exchange Subject to APRA’s prior written approval and provided certain conditions are satisfied, BEN may Exchange CPS via: C Conversion
Slide 19: Mandatory Conversion
Mandatory Conversion Mandatory On the Mandatory Conversion Date, Holders will receive approximately $102.56 of Ordinary Shares1, unless CPS have been For personal use only Conversion Exchanged earlier The Mandatory Conversion Date is 13 December 2019 provided that all of the Mandatory Conversion
Slide 20: Capital Trigger Event
Capital Trigger Event Capital Trigger A Capital Trigger Event will occur if: For personal use only Event the Common Equity Tier 1 Ratio of BEN Level 1 or Level 2 Group as determined by BEN or APRA at any time is equal to or less than 5.125% (“Common Equity Trigger Event”); or APRA notifies BEN
Slide 21: Balance sheet strength and Common Equity Tier 1 Ratio
Level 2 Common Equity Tier 1 Ratio Level 2 Common Equity Tier 1 Ratio2 For personal use only 9 Balance Prudent and pro-active approach to balance sheet management Sheet Estimated 8.09% adjusted Common Equity Tier 1 Ratio at 30 June 2012 (Basel Strength III)1 8.09% 8 7 77% 7.77% 7.67% 7.20% BEN
Slide 22: Other Early Exchange
Other Early Exchange Other Early BEN may choose to Exchange all or some CPS on issue at any time after a Tax Event or a Regulatory Event For personal use only Exchange BEN may choose to Convert all CPS after an Acquisition Event BEN must Convert all CPS on issue if a Change of Control Event oc
Slide 23: Comparison to other recent Tier 1 Hybrids
Comparison to other recent Tier 1 Hybrids BEN CPS CBA PERLS VI IAG CPS Westpac CPS For personal use only Legal form Preference share Perpetual note Preference share Preference share ASX Code Expected to be BENPD Expected to be CBAPC IAGPC WBCPC Margin Expected to be in the range of
Slide 24: Key Risks: investing in CPS
Key Risks1 Key risks associated with investing in CPS For personal use only Market price of CPS The price at which Holders are able to sell CPS on the ASX is uncertain Liquidity There may be no liquid market for CPS Holders who wish to sell their CPS may be unable to do so at a price acceptabl
Slide 25: Key Risks: Bendigo and Adelaide Bank
Key Risks1 Key risks and uncertainties associated with Bendigo and Adelaide Bank For personal use only Credit and counterparty risk The unwillingness or inability of counterparties to fully meet their contractual debts and obligations may result in financial loss Competition The effect of compet
Slide 26: Key Dates
Key Dates Date for determining Eligible Securityholders 21 September 2012 For personal use only Lodgement of the Prospectus with ASIC 24 September 2012 Bookbuild to determine the Margin 28 September 2012 Announcement of the Margin 1 October 2012 Lodgement of the replacement Prospectus with ASIC 2 Oc
Slide 27: Key Dates – RPS Holders
Key Dates – RPS Holders Record date for determining Eligible RPS Holders for Reinvestment Offer 21 September 2012 For personal use only Record date for RPS Dividend 17 October 2012 Last day of trading for RPS on ASX 24 October 2012 Closing Date for the Reinvestment Offer 5:00pm Melbourne time on 25
Slide 28: Contact Details
Contact Details For personal use only Bendigo and Adelaide Bank Arranger and Joint Lead Manager Joint Lead Manager Richard Fennell Jacqui Vanzella Damian Pretty Chief Financial Officer Phone: (02) 8232 4904 Phone: (03) 9631 9801 Phone: (08) 8300 6200 Mobile: 0412 888 930 Email: richard.fennell@bendi
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