Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Citi Australian Investment Conference 2010
18 slides from Bendigo & Adelaide Bank's conference presentation, Oct 26, 2010
Slide 1: Bendigo and Adelaide Bank – Citi Australian Investment Conference
For personal use only Bendigo and Adelaide Bank Citi Australian Investment Conference Richard Fennell – Chief Financial Officer October 26, 2010 1
Slide 2: Agenda
For personal use only • Business performance – 1Q 2011 – Net interest margin – Growth – Credit – Great Southern • Rural Bank acquisition Agenda 2
Slide 3: Business performance
For personal use only Business performance 3
Slide 4: Net interest margin
Net interest margin For personal use only Factors First quarter experience • Continued margin Asset mix •Mortgage growth moderating •Continued strong growth in business lending challenges •Margin lending portfolio declining in line with industry • No expensive term Liquidity •Build up of liquidity i
Slide 5: Asset growth
Asset growth • Margin lending still suffering • Leveraging customer For personal use only from lack of risk appetite satisfaction in small business lending – 18.4% annualised growth for the three months to end of August • Residential lending continues to grow broadly in line with system through our
Slide 6: Continued strength in residential credit quality
Continued strength in residential credit quality For personal use only • Strong Australian economy continues to support sound credit conditions • Employment remains the key factor in maintaining residential asset quality Business performance 6
Slide 7: Credit continues to remain sound
Credit continues to remain sound • Arrears in other major asset classes vary, but remain at For personal use only historical low levels Business performance 7
Slide 8: Great Southern – good news
Great Southern – good news For personal use only • Class action by Macpherson + Kelley (M+K) struck out in Victorian Supreme Court (October 20, 2010) – Ordered to pay costs in relation to statement of claim • Class action by DC Legal withdrawn in Federal Court of Sydney (October 22, 2010) – Ordered
Slide 9: Rural Bank acquisition
For personal use only Rural Bank acquisition 9
Slide 10: Transaction details
Transaction details For personal use only • Purchase of remaining 40% in RB • Elders Limited receives $165m or 1.18x book value3 • EPS and ROE accretive immediately • Transaction expected to settle in FH20114 • Elders will be paid a special dividend for share of profit up to settlement • Distributio
Slide 11: A well performing specialist bank
A well performing specialist bank For personal use only • Rural Bank (formerly Elders Rural Bank) formed in 1999 • Initially a joint venture between Bendigo Bank and Elders Limited • 32,500 customers • 6.2% market share (ag sector) • 128 FTE staff • Continued growth in profit • History of strong cre
Slide 12: Solid foundations for growth
Solid foundations for growth For personal use only A quality loan book and balance sheet • Circa $3.7bn in loans • More than 98% retail funded • $55.4m NPAT FY10 • Credit quality remains sound – despite prolonged drought across Australia Distribution platform • Strong proven relationship between BEN
Slide 13: Diversified business
Diversified business For personal use only • Diversity by industry and • Reflects comprehensive geography national distribution network Business fundamentals 13
Slide 14: Low risk funding
Low risk funding For personal use only • 98% retail retail funded • Leveraging core strengths of Elders branch network Business fundamentals 14
Slide 15: Credit quality
Credit quality For personal use only • 90 days past due $78m • Non-performing loans 2.7% • FY10 credit losses were $6m or 0.16% of loans • Approved facilities for irrigation intensive agriculture (including Murray Darling Basin) is approximately 3% • Commodity prices strengthening • Drought official
Slide 16: Strong – low risk acquisition
Strong – low risk acquisition For personal use only • No integration risk • Potential ratings upside for Rural Bank • Supports ratings momentum for BEN • Purchase will better enable BEN to support RBL’s expansion • Reinforces BEN’s commitment to rural and regional Australia • Diversifies BEN’s earni
Slide 17: Questions
For personal use only Questions 17
Slide 18: Investor relations contacts
Will Rayner Terry Fountas For personal use only Head of Capital and Investor Relations Senior Manager Investor Relations Bendigo and Adelaide Bank Limited Bendigo and Adelaide Bank Limited Tel: +61 8 8220 7764 Tel: +61 8 8220 7730 Mob: +61 437 794 366 Mob: +61 437 650 913 Email: wrayner@adelaidebank
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