Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — H1 2020 Earnings Presentation
53 slides from Bendigo & Adelaide Bank's earnings presentation, Feb 17, 2020
Slide 1: Results Presentation for the half year ended 31 December 2019
For personal use only Results Presentation For the half year ended 31 December 2019
Slide 2: Agenda
Agenda Overview Marnie Baker 1H20 financials Travis Crouch Summary and outlook Marnie Baker Q&A Marnie Baker and Travis Crouch > | Bendigoand AdelaideBank 2
Slide 3: Overview
For personal use only Overview Marnie Baker Managing Director
Slide 4: Overview 1H20
Overview 1H20 Solid result underpinned by strong growth, margin management and credit quality For personal use only 1.1x Residential Small business above system lending growth lending growth lending growth +7.7%1 +15.6%2 4.9% uplift in customers numbers Top 10 most Margin steady New customers 10 yea
Slide 5: Our purpose in action
Our purpose in action Supporting our customers and communities experiencing hardship For personal use only Over the short, medium and long term Our customers Our communities • Emergency funds available to customers • Our National Bushfire Disaster Appeal has raised • Home, Business and Agri loan ass
Slide 6: 1H20 financial result
1H20 financial result For personal use only 1H20 1H20 v 2H19 1H20 v 1H19 Includes software Impairment of $87.1m2 Statutory net profit ($m) 145.8 (16.0%) (28.2%) Advanced Accreditation Cash earnings ($m) 215.4 10.0% (2.0%) $57.8m New Payments Platform Total income ($m) 814.7 2.3% 1.4% $11.1m Other $1
Slide 7: Disciplined strategy execution
Disciplined strategy execution Achieving sustainable growth, a seamless customer experience and reduced cost base For personal use only To deliver: • Seamless customer experience • Medium-term reduction in cost base • Sustainable growth
Slide 8: Focusing our investment
Focusing our investment Driving simplification of processes and building new capability and capacity for growth For personal use only New and enhanced third party Processing capacity to support strong partnerships growth Continued modernisation of branch Distribution capability to provide network –
Slide 9: Accelerating investment in five key areas
Accelerating investment in five key areas To support growth, increase operation leverage and maintain a leading customer experience For personal use only Designing and delivering customer centric experiences Customer experience Leveraging AI and machine learning capability to enhance customer experi
Slide 10: Strength in balance sheet for continued growth
Strength in balance sheet for continued growth For personal use only • CET1 ratio increased 8bps over 1H20 to 9.00% • Expected to raise $300m capital1 via an underwritten institutional placement and non-underwritten share purchase plan (SPP) • Maintain strength in balance sheet to: • Support continu
Slide 11: 1H20 financials
For personal use only 1H20 financials Travis Crouch Chief Financial Officer
Slide 12: Financial performance
Financial performance For personal use only
Slide 13: 1H20 growth profile
For personal use only 1H20 growth profile 1
Slide 14: Stronger lending activity
Stronger lending activity For personal use only
Slide 15: Net interest margin
Net interest margin For personal use only • • • • •
Slide 16: Income
For personal use only • • • • • • Income
Slide 17: Operating expenses
Operating expenses • For personal use only • • • •
Slide 18: Staff costs
For personal use only • • • • • • • • Staff costs
Slide 19: Consumer division
Consumer division For personal use only • • • • • Underlying expenses were maintained flat against prior half • •
Slide 20: Business division
Business division For personal use only • • • • •
Slide 21: Agribusiness division
Agribusiness division For personal use only • • • • •
Slide 22: Homesafe investment property portfolio
Homesafe investment property portfolio • For personal use only • • • • •
Slide 23: Bad and doubtful debts
Bad and doubtful debts For personal use only • • • •
Slide 24: Arrears
Arrears For personal use only $8.5b Billions $8.0b $7.5b $7.0b $6.5b $6.0b
Slide 25: Funding mix
For personal use only • • • • • • • • Funding mix 1
Slide 26: Capital
For personal use only • • • • • • • Capital
Slide 27: Outlook and summary
For personal use only Outlook and summary Marnie Baker Managing Director
Slide 28: Outlook
Outlook Resilience in uncertain times For personal use only • Expected • Growth in digital • Continued regulatory focus • Domestic economic indicators improving • Uncertainty • Climate change • Global economy • Coronavirus
Slide 29: Financial considerations for 2H20
Financial considerations for 2H20 Strong growth with NIM and expense headwinds For personal use only • Mortgage lending growth rates expected to exceed system growth • Business lending growth to revert towards system growth through 2H20 • Agri lending growth to be underpinned by seasonal drawdowns f
Slide 30: Summary
Summary Delivering sustainable growth, a seamless customer experience and reduced cost base For personal use only • Strong residential mortgage lending • Accelerated investment across the business in revenue opportunities, partnerships, simplification, automation technology, risk and compliance • Ne
Slide 31: Questions
For personal use only Questions
Slide 32: Appendix
For personal use only Appendix
Slide 33: Appendix index
For personal use only Appendix index
Slide 34: Our longstanding commitment to the environment
Our longstanding commitment to the environment Demonstrated through: For personal use only • No direct lending to coal or coal seam gas projects • 5 star NABERS Energy rating for Adelaide and Bendigo head office buildings • Voluntary reporting on carbon emissions; 28.84kt C02e emissions in FY19, 11.
Slide 35: Executive team
For personal use only Executive team
Slide 36: We are well placed
For personal use only We are well placed
Slide 37: Digital Partnerships delivering growth and digital capabilities
Digital Partnerships delivering growth and digital capabilities For personal use only • • • • • • • • •
Slide 38: Changing customer preferences
Changing customer preferences For personal use only
Slide 39: Physical presence
For personal use only Physical presence
Slide 40: The Community Bank model
The Community Bank model For personal use only • • • • • • •
Slide 41: Residential portfolio
Residential portfolio For personal use only
Slide 42: Residential portfolio – total exposure
Residential portfolio – total exposure For personal use only
Slide 43: Residential portfolio key metrics
Residential portfolio key metrics For personal use only
Slide 44: Business division - segments
Business division - segments For personal use only • • • • • •
Slide 45: Agribusiness portfolio
Agribusiness portfolio For personal use only
Slide 46: Customer deposit methodology
Customer deposit methodology For personal use only • •
Slide 47: Funding and liquidity
Funding and liquidity For personal use only
Slide 48: Specific provisions
For personal use only Specific provisions
Slide 49: Capital
For personal use only Capital
Slide 50: Great Southern
Great Southern For personal use only • • • • $m #
Slide 51: Reconciliation
For personal use only Reconciliation
Slide 52: For personal use only
Analysts — Karen McRae Head of Investor Relations T: +61 3 8414 7060 M: +61 417 186 500 E: karen.mcrae@bendigoadelaide.com.au Alex Hartley Manager Investor Relations T: +61 8 8300 6290 M: +61 478 435 218 E: alex.hartley@bendigoadelaide.com.au Media — Simon Fitzgerald Head of Public Relations T: +61
Slide 53: Disclaimer
For personal use only Disclaimer
Bendigo and Adelaide Bank — H1 2020 Earnings Presentation on 6ix