Bell Financial Group Limited · ASX:BFG
Bell Financial — FY2020 Earnings Presentation
25 slides from Bell Financial's earnings presentation, Feb 17, 2021
Slide 1: Bell Financial Group FY2020 Results
Australian owned, we provide traditional stockbroking, investment and financial advisory services to private, institutional and corporate clients. A developer of proprietary technology, platforms, products and services for the Australian stockbroking market.
Slide 2: Contents
1 Key Highlights 2 2 Financial Summary – FY 2020 5 3 Our Operating Divisions 9 4 Our Strategy 20
Slide 3: Key Highlights
KEY HIGHLIGHTS BELL FINANCIAL GROUP
Slide 4: Key Highlights
KEY HIGHLIGHTS Revenue Profit After Tax Funds Under Advice $299.3m $46.7 m $63.9b 18% increase on 2019 44% increase on 2019 9% increase on 2019 Earnings Per Share Dividend Per Share Return on Equity 14.6¢ share 10.5¢ share 29% 44% increase on 2019 31% increase on 2019 32% increase on 2019 ─ Full yea
Slide 5: Financial Summary FY 2020
FINANCIAL SUMMARY FY 2020 BELL FINANCIAL GROUP
Slide 6: Financial Summary
FINANCIAL SUMMARY Consistent growth in Revenue and Earnings over an extended period. REVENUE ($M) NPAT ($M) EARNINGS PER SHARE (CENTS) DIVIDEND PAID ($M) AND GROSS DIVIDEND YIELD (%) 350 16 50 46.7 14.6 CAGR +23.4.% $40 40% CAGR 299.3 CAGR +23.9% 45 14 300 +12.9% CAGR +29.9% $35 35% 254.5 40 12 $33.
Slide 7: Financial Summary (cont.)
FINANCIAL SUMMARY (CONT.) We have a solid cash-backed balance sheet with no core operating debt EBIT MARGIN BFG SHARE PRICE MOVEMENT RETURN ON EQUITY January 2016 – December 2020 BFG XJO 24% 30% 29.0% 22.4% 28% 22% CAGR +13.1% 26% CAGR +23.5% 24% 20% 22.0% 18.3% 22% 18% 20% 16.4% 18% 17.3% 16% 15.1%
Slide 8: Financial Summary (cont.) Group Funds Under Advice
FINANCIAL SUMMARY (CONT.) GROUP FUNDS UNDER ADVICE FUNDS UNDER ADVICE ($B)* CHESS SPONSORED HOLDINGS ($B) PAS ($B) 9% increase on 2019 10% increase on 2019 6% increase on 2019 70 4 3.6 63.9 70 3.4 58.4 57.5 3.5 60 60 52.1 3 2.7 2.8 47.2 46.8 50 50 42.2 41.6 38.8 2.5 2.3 34.4 26.5 40 40 22.0 15.7 2 3
Slide 9: Our Operating Divisions
OUR OPERATING DIVISIONS BELL FINANCIAL GROUP
Slide 10: Corporate Structure & Business Units
CORPORATE STRUCTURE & BUSINESS UNITS BROKING TECHNOLOGY & PLATFORMS PRODUCTS & SERVICES RETAIL & INSTITUTIONAL ─ Retail Equities (Domestic & International) Five distinct business units operate within Third Party Platform: ─ Margin Lending ─ Institutional Equities ─ Structured Loan Products ─ 24-hour
Slide 11: Broking – Retail & Institutional
BROKING – RETAIL & INSTITUTIONAL BROKERAGE REVENUE ECM AND SYNDICATION SPONSORED HOLDINGS ($B) (RETAIL & INSTITUTIONAL) ($M) REVENUE ($M) 120 120 109.0 40.0 105.7 110 34.6 35.0 33.5 100 92.6 91.6 94.6 100 85.8 83.0 29.2 90 30.0 27.7 25.9 80 80 66.4 25.0 70 85.2 54.6 60 60 20.0 64.4 72.9 73.2 76.6 10
Slide 12: Broking – Equity Capital Markets and Syndication
BROKING – RETAIL & INSTITUTIONAL EQUITY CAPITAL MARKETS AND SYNDICATION Our ECM division and Syndication desk had an outstanding year. Bell Potter successfully raised over $3.4 billion across 109 capital market transactions during 2020. ECM ACTIVITY BY DEAL VALUE ($M) Rank Company Deal value ($m) 1
Slide 13: Broking – Equity Capital Markets and Syndication
BROKING – RETAIL & INSTITUTIONAL EQUITY CAPITAL MARKETS AND SYNDICATION Page 13
Slide 14: Broking – Equity Capital Markets and Syndication
BROKING – RETAIL & INSTITUTIONAL EQUITY CAPITAL MARKETS AND SYNDICATION Page 14
Slide 15: Broking – Equity Capital Markets and Syndication
BROKING – RETAIL & INSTITUTIONAL EQUITY CAPITAL MARKETS AND SYNDICATION Page 15
Slide 16: Broking – Equity Capital Markets and Syndication
BROKING – RETAIL & INSTITUTIONAL EQUITY CAPITAL MARKETS AND SYNDICATION Page 16
Slide 17: Technology & Platforms
TECHNOLOGY & PLATFORMS Consistent growth in revenue, profit, sponsored holdings and client accounts over an extended period. ─ $26.5 billion in Sponsored Holdings. ─ General Clearing Participant status attained in 2020. Commenced clearing for a pilot programme of BPS cllients. ─ 207,000 client accou
Slide 18: Technology & Platforms (cont.)
TECHNOLOGY & PLATFORMS (CONT.) Third Party Platform operates five distinct businesses: Bell Direct Provides execution and clearing services to the Financial Planning industry. Desktop Broker has agreements with over 3,200 Financial Planners, servicing more than 42,000 clients. Desktop Broker Our pro
Slide 19: Products & Services
PRODUCTS & SERVICES ─ The only non-bank margin lender in the Australian marketplace ─ Conservatively managed with an average LVR of 26% across the loan ─ Consistent revenue and earnings growth book ─ $470 million loan book YTD December 2020. ─ $14.8 million net revenue YTD December 2020. ─ $437 mill
Slide 20: Our Strategy
OUR STRATEGY BELL FINANCIAL GROUP
Slide 21: Growth Through Investment in Proprietary Technology, Platforms, Products & Services
GROWTH THROUGH INVESTMENT IN PROPRIETARY TECHNOLOGY, PLATFORMS, PRODUCTS & SERVICES We have a simple strategy. Growth through our traditional full service broking businesses augmented by investment in leading edge technology through our ongoing commitment to the continuous development of our proprie
Slide 22: Growing Recurring Revenue Streams
GROWING RECURRING REVENUE STREAMS Investment in technology platforms, products and services is a significant component of our ongoing business development. Increased leverage to technology is producing better outcomes for our staff and clients resulting in material growth in revenues and profit acro
Slide 23: About Bell Financial Group
ABOUT BELL FINANCIAL GROUP Established in 1970 and publicly listed in 2007, Bell Financial Group is an Australian owned provider of stockbroking (full service and online) and investment and financial advisory services to private, institutional and corporate clients. 14 offices across Australia plu
Slide 24: About Bell Financial Group
ABOUT BELL FINANCIAL GROUP Page 24
Slide 25: Important Disclaimer
Important Disclaimer The material contained in this presentation has been prepared by Bell Financial Group Limited ABN 59 083 194 763 (Bell Financial Group) and is general background information about the businesses, operations and activities of Bell Financial Group and its subsidiaries, current as