Bell Financial Group Limited · ASX:BFG
Bell Financial — Shareholder Meeting (March 2021)
20 slides from Bell Financial's shareholder meeting presentation, Mar 19, 2021
Slide 1: 2021 AGM – Executive Chairman's Presentation
19 March 2021 ASX Market Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 2021 AGM – EXECUTIVE CHAIRMAN’S PRESENTATION Please find attached a copy of the presentation to be given by the Executive Chairman at Bell Financial Group Limited’s Annual General Meeting today. For more infor
Slide 2: Bell Financial Group 2021 AGM
Bell Financial Group 2021 AGM 1
Slide 3: Bell Financial Group 2021 AGM
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Slide 5: 2020 results highlights
REVENUE NET PROFIT AFTER TAX EARNINGS PER SHARE $299.3m $46.7m $14.6¢ share 18% increase on 2019 44% increase on 2019 44% increase on 2019 DIVIDEND PER SHARE DIVIDEND YIELD (GROSS) RETURN ON EQUITY 10.5¢ share 8.2% 29% 31% increase on 2019 Based on the BFG share price at 31 December 2020 32% increas
Slide 6: Consistent growth in Revenue and Earnings over an extended period
Consistent growth in Revenue and Earnings over an extended period REVENUE ($M) NPAT ($M) EARNINGS PER SHARE (CENTS) DIVIDEND PAID ($M) AND GROSS DIVIDEND YIELD (%) 350 50 $40 40% 46.7 16 14.6 299.3 45 300 14 $35 35% CAGR +12.9% CAGR +23.4.% 254.5 40 CAGR +23.9% $33.6 CAGR +29.9% 250 12 $30 30% 220.0
Slide 7: We have a solid cash-backed balance sheet with no core operating debt
We have a solid cash-backed balance sheet with no core operating debt RETURN ON EQUITY EBIT MARGIN BELL FINANCIAL GROUP – TOTAL SHAREHOLDER RETURN 30% 29.0% January 2016 – March 2021 24% 28% 22.4% 26% CAGR +23.5% 22% CAGR +13.1% 24% 22.0% 20% 22% 18.3% 20% 18% 17.3% 18% 16.4% 16% 14.9% 16% 15.1% 14%
Slide 8: Funds under advice, CHESS sponsored holdings, PAS, cash deposits, margin loans
FUNDS UNDER ADVICE ($B)* CHESS SPONSORED HOLDINGS ($B) PAS ($B) 9% increase on 2019 10% increase on 2019 6% increase on 2019 4 3.6 70 63.9 70 57.5 3.4 58.4 3.5 60 60 52.1 3 2.7 2.8 47.2 46.8 50 50 42.2 41.6 38.8 26.5 2.5 2.3 40 40 34.4 22.0 15.7 16.7 2 30 30 10.8 1.5 20 20 26.5 30.1 31.0 1 10 10 23.
Slide 9: Business units and services overview
─ Retail Equities (Domestic & International) Five distinct business units operate within Third Party Platform: ─ Bell Potter Portfolio Administration Service (PAS) ─ Institutional Equities ─ Bell Potter Personal Superannuation Solutions 1. Institutional & Financial Planners ─ Equities Research - pro
Slide 10: Brokerage revenue and ECM and syndication revenue
BROKERAGE REVENUE ($M) ECM AND SYNDICATION REVENUE ($M) 120 120 109.0 110 105.7 100 92.6 94.6 100 91.6 90 85.8 83.0 80 80 66.4 70 85.2 54.6 60 60 72.9 73.2 76.6 106.4 64.4 50 41.8 77.7 40 40 62.0 30 52.4 20 20 38.9 10 21.4 19.7 18.4 18 20.5 0 2.9 2.2 4.4 5.3 2.6 0 2016 2017 2018 2019 2020 2016 2017
Slide 11: ECM and Syndication had an outstanding year
‒ Our ECM division and Syndication desk had an outstanding year. ‒ Bell Potter successfully raised over $3.4 billion across 109 capital market transactions during 2020. Rank Company Deal value ($m) 1 UBS 8,053 2 Macquarie 7,890 3 Goldman Sachs 6,991 4 JP Morgan 4,784 5 Citi 4,663 6 Bell Potter 2,503
Slide 12: Capital markets transactions 2020
$70.0m Placement $146.0m Placement $10.7m Placement $1.0m Placement $25.0 Placement $12.0m Placement $7.2m Placement $10.0m Placement $12.0m $35.0m Placement Lead Manager Lead Manager Lead Manager Lead Manager Joint Lead Manager Lead Manager Lead Manager Lead Manager Lead Manager Joint Lead Manager
Slide 13: Capital markets transactions 2020
$80.0m IPO $18.4m Placement $40.0m Placement $3.5m Placement $32.0 Placement & $250.0m Placement $66.0m IPO $10.0m Placement $10.0m Placement $9.2m Placement Rights Joint Lead Manager Lead Manager Lead Manager Lead Manager Joint Lead Manager Joint Lead Manager Joint Lead Manager Joint Lead Manager L
Slide 14: Capital markets transactions 2020
$401.0m Placement & $60.0m Placement $65.0m IPO $11.9m IPO ANREO $13.0m Placement $5.0m Placement $6.3m Placement $30.0m Placement $35.0m IPO Lead Manager and Joint Lead Manager and Joint Lead Manager and Lead Manager Underwriter Lead Manager Underwriter Lead Manager Lead Manager Lead Manager Underw
Slide 15: Third Party Platform business units
Third Party Platform has five distinct business units: Bell Direct Our proprietary online retail broking platform has won numerous industry awards in recent years and currently services more than 55,000 trading retail clients. Desktop Broker Provides execution and clearing services to the Financial
Slide 16: Consistent growth in revenue, profit, sponsored holdings and client accounts
Consistent growth in revenue, profit, sponsored holdings and client accounts over an extended period ‒ Strong revenue growth across all three brands, Desktop Broker, White Label and Bell Direct. ‒ Revenue of $24.3 million in 2020 was 44% greater than the previous corresponding period and produced a
Slide 17: Margin lending, structured products, cash, PAS and super solutions
‒ Margin Lending, Structured Products, Cash, PAS, Super Solutions. ‒ $437 million cash book, up 14% year on year as previously mentioned. ‒ The only non-bank margin lender in the Australian marketplace ‒ Consistent revenue and earnings growth ‒ $470 million loan book. Revenue – Margin Lending & Cash
Slide 18: Our strategy: growth through full service broking and proprietary technology
Our strategy is simple. Growth through our full service broking businesses augmented by continuous investment in leading edge proprietary technology. ‒ FUSION – In-house desktop application ‒ covering all aspects of adviser day-to-day functions ‒ ‒ ‒ ‒ IQ – Price discovery and trade execution platfo
Slide 19: The benefits of our investment in technology are real and measurable
‒ The benefits of our investment in technology are real and measurable. Approximately 10% of Group FUA, $6.4 billion, currently use our various platforms, products and services generating revenue of $70 million which now represents 23.4% of total revenue, 13.3% higher than the previous corresponding
Slide 20: Excellent start to the year: Q1 2021 estimates
‒ We have had an excellent start to the year. REVENUE ‒ Our ECM pipeline is full, our secondary market activity in both our full service and online broking business has been strong, and our Funds Under Administration continue to grow. $64m (estimate) 10% increase on Q1 2020 ‒ We estimate Group reven
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