Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Investor Day (May 2024)
46 slides from Bendigo & Adelaide Bank's investor day presentation, May 23, 2024
Slide 1: ASX Announcement – 2024 Investor Day
ASX Announcement 2024 Investor Day 23 May 2024 Bendigo and Adelaide Bank Limited (ASX:BEN) provides the attached Investor Day presentation. A video recording of the event will be made available at the Bendigo and Adelaide Bank website www.bendigoadelaide.com.au on 24 May 2024. Approved for release b
Slide 2: Investor day 23 May 2024
Investor day 23 May 2024
Slide 3: Introduction
01 Introduction Sam Miller, General Manager Investor Relations & ESG
Slide 4: Acknowledgement of Country
Acknowledgement of Country I would like to begin today by acknowledging the Traditional Custodians of the many lands that we are gathered on. Specifically, I would like to respectfully acknowledge the Gadigal Peoples of the Eora Nation. I would also like to acknowledge the Traditional Custodians of
Slide 5: Agenda and presenters
01 02 03 Introduction BEN’s Strategy Transformation execution Sam Miller, General Manager Marnie Baker, Chief Executive Officer and Ryan Brosnahan, Chief Transformation Officer Investor Relations & ESG Managing Director 04 Breakouts & Highlights Business & Agri Bendigo Lending Platform Up Adam Rows
Slide 6: BEN’s strategy
02 BEN’s strategy Marnie Baker, Chief Executive Officer and Managing Director
Slide 7: Executive leadership team
Marnie Baker Ryan Brosnahan Andrew Morgan Louise Tebbutt Chief Executive Officer and Chief Transformation Officer Chief Financial Officer Chief People Officer Managing Director Taso Corolis Richard Fennell Adam Rowse Bruce Speirs Chief Risk Officer Chief Customer Officer, Chief Customer
Slide 8: Capability Differentiation
Strength Balance sheet Capability People, infrastructure and risk management Differentiation Trust, community and regional values
Slide 9: Shaping the future of banking — our strategy
Shaping the future of banking — our strategy For our customers, our people, partners, communities and shareholders Vision Australia’s bank of choice Purpose To feed into prosperity, not off it Imperatives Reduce complexity Invest in capability Tell our story 08 | Bendigo and Adelaide Bank — Investor
Slide 10: Optimisation
Optimisation 2024 2027 2028 Reduce Continued investment in core technology Data cloud migration; Business and Agribusiness; Productivity complexity Invest in Leveraging digital capability Up; Digital deposits; Bendigo Lending Platform capability Build on our advocacy to help support growth Tell our
Slide 11: Transformation execution
03 Transformation execution Ryan Brosnahan, Chief Transformation Officer
Slide 12: Reducing complexity — from many to one
Reducing complexity — from many to one Completed FY23 Completed FY24 Commenced FY24 Commenced FY24 Core banking system Origination Servicing Internet banking Website Access to broader product range Unlocks power of Bendigo brand advocacy Increased service offering via branches, phone and web Increas
Slide 13: Modernising our technology — building an agile and efficient bank
Modernising our technology — building an agile and efficient bank ~ 50 % 43 % 54 % reduction migrated API reuse 650 328 applications 1% 43% applications 0% 54% applications The data above reflects: 1 April 2020 to 30 April 2024 IT Application simplification Cloud migration API Modernisation ~50% red
Slide 14: Accelerating our digital capabilities — digitising key customer journeys
Accelerating our digital capabilities — digitising key customer journeys Business lending Everyday banking Home lending Saving 'Digital by design, human when it matters' experience Market leading digital-only experience 13 | Bendigo and Adelaide Bank — Investor Day 2024
Slide 15: Accelerating our digital capabilities — mortgage channels
Accelerating our digital capabilities — mortgage channels Current state transforming to Target state Adelaide Bank Brand Bendigo Bank Brand Individual Brands Digital by design, human when it matters BENexpress Adelaide Bank Digital self-serve Relationship Led Brokers Up Qantas Money Direct Third Par
Slide 16: Shared digital capability powering all our channels
Shared digital capability powering all our channels
Slide 17: Accelerating our digital capabilities — sales
Accelerating our digital capabilities — sales Digital term deposit Digital savings account growth account growth 18.2% + 2 1% 50.6% 29.2% 0.3 % +18% Mar 23 Mar 24 Mar 23 Mar 24 In-app ‘join the bank’ experience coming next 16 | Bendigo and Adelaide Bank — Investor Day 2024
Slide 18: Business & Agri
04 Business & Agri Adam Rowse, Chief Customer Officer Business & Agri Veronica Viola, General Manager Strategy, Transformation & Execution
Slide 19: We haven’t kept pace with commercial lending growth
We haven’t kept pace with commercial lending growth 1 BEN market share — non-financial businesses1 Our customers and propositions Limited capability to support a shifting customer preference to digital and broker channels. Our people 2.0% Customer facing bankers completing the full customer experien
Slide 20: Key growth markets and where we will focus our energy
We have identified our key growth markets and where we will focus our energy 1 Trusted brand Deepen relationships Our brand, and community and Making it easier for our existing regional connections are enviable customers to access our products Micro Property strengths to grow from. and services repr
Slide 21: Building a sustainable business and agri bank
We are building a sustainable business and agri bank, investing in the foundations 01 02 03 04 Simplification ABC Platform Rural migration Equipment finance Operating model readiness, Implement market leading Consolidate core Implement new EF simple policy and process CRM and origination platform sy
Slide 22: Our aspiration for the business and agri bank spans three horizons
Our aspiration for the business and agri bank spans three horizons building foundations growing at leading FY24+ system FY29+ Aligned and compelling proposition Aligned and simplified operating model FY26+ Curated experiences for our Most trusted business and agri bank target markets Digitally enabl
Slide 23: Bendigo Lending Platform
04 Bendigo Lending Platform Richard Fennell, Chief Customer Officer, Consumer Janelle Wehsack, Lead Bendigo Lending Platform Darren Kasehagen, General Manager Third Party Banking
Slide 24: The new Lending Platform makes life easier for customers, staff and partners
The new Lending Platform makes life easier for our customers, staff and partners Reduce Modernise Digitise our complexity our technology our customer experience Retiring legacy brands New technology and improved functionality and Reducing lending decision time capabilities Consolidating core banking
Slide 25: Launched trial of the Lending Platform — November 2023
Launched trial of the Lending Platform — November 2023 6 minutes vs 5 days Time to conditional approval (median) 30 more efficient % 22 faster % 60 uplift % 44 uplift % Full time equivalent staff in Time to unconditional Applications per day Loans passing automatic processing centre approval (median
Slide 26: Our brokers love how we’ve made things easier for them
Our brokers love how we’ve made things easier for them “My customers have loved how simple and easy it's been with Bendigo, the post settlement care and welcome call has also been great and has actually taken place” — Nicole My customers are fully aware of who Bendigo Bank is, knowing they are one “
Slide 27: Today, tomorrow, and the future of the Lending Platform
Today, tomorrow, and the future of the Lending Platform We are here FY23 FY24 FY25 FY26 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Consumer lending Build foundations Broker build BEN Broker trial BEN Broker rollout White label / Strategic partners Retail Business consolidations Adelaide Bank — core bank
Slide 28: Up
04 Up Xavier Shay, Chief Executive Officer, Up Ryan Brosnahan, Chief Transformation Officer
Slide 29: Locked Savers, 2Up, Up Home
LOCKED SAVERS Financial Wellbeing $105M+ Held in 35,000+ Locked Savers 2UP Joint Accounts 26% Of active Upsiders¹ have 2Up joint accounts UP HOME Mortgages $500M+ In Identified Home Savings². 190,000+ $370M+ in settled Up Home Loans SAVE UP 1000 Savings Habit Creation Upsiders started, 17,000+ Compl
Slide 30: Transactions completed since launch
$155B+ Transactions completed since launch #1 Highest rated banking app¹ $2.0B+ Deposits Balance 27%Year-on-year growth. 840k+ Upsiders 80%Word-of-mouth growth², <$50 CPA³ ¹ Up rated 4.9 and 4.8 in App & Play stores respectively at 1-May-2024 29 | Bendigo and Adelaide Bank — Investor Day 2024 ² Cust
Slide 31: Why do customers love us?
Why do customers love us? Tier 1 Drivers of Advocacy - All Up Customers ys do urite app- you gu "This is my favo nking le job making ba such an incredib Improve Leverage !" and saving FUN Channel "i have adhd an d this is the only thing i’ve done consis te ntly for the last ye ar, it’s bright and fu
Slide 32: We’re growing as fast as ever
We’re growing as fast as ever Customer Growth Deposit Growth 31 | Bendigo and Adelaide Bank — Investor Day 2024
Slide 33: Up Home
Up Home Up Home Attribution Up Home Funnel Owned Channels(free) Started marketing in earnest Launched Home Zone Un-incentivised referrals (New purchases supported) Soft Launch (Refi only) $370M 65% $500M Homes Settled Loans to Existing Upsiders Identified Home Savings 32 | Bendigo and Adelaide Bank
Slide 34: Early Access sub in the first 24 hours Digital Only Membership Merch + Digital
5,000 Early Access sub in the first 24 hours $25.00 Digital Only Membership $50.00 Merch + Digital Membership 33 | Bendigo and Adelaide Bank — Investor Day 2024
Slide 35: 34 | Bendigo and Adelaide Bank — Investor Day 2024
34 | Bendigo and Adelaide Bank — Investor Day 2024
Slide 36: Pathway to target ROE
05 Pathway to target ROE Andrew Morgan, Chief Financial Officer
Slide 37: Strong balance sheet to support our growth aspirations
Strong balance sheet to support our growth aspirations Capital Funding CET1 (Standardised basis)1 S&P RAC ratio2 Household Deposits / Loans Ratio3 1 12% differential translates into 11.12% 14.2% 73% $7b lower reliance on wholesale debt markets for BEN 61% 12.1% 9.49% BEN Major Average BEN Major Aver
Slide 38: Operating expenses managed at or below inflation levels
Operating expenses managed at or below inflation levels Modernise technolog y Reduce complexit y Accelerate digital 8 core systems to 3 1Reduced IT 13 brands to 71 Business and Agri division Digital mortgage First bank to launch applications by 50% settlements 19.1% at 3Q24 all the “pays” Migrated 4
Slide 39: Investing in our business
Investing in our business Continuing to invest for long-term simplification benefits Open Banking Foundational Up Bendigo lending Business & Agri spend Deposits and Home platform simplified operating model including pricing engine, Lending commenced and in collateral management progress Investment
Slide 40: Pathway to achieving target ROE
Continued focus on cost Pathway to achieving management and targeting target ROE improvement in C TI ratio 1 Total Digital deposits $m 3,201 Investing in our deposit gathering franchise with 1,266 Up and Bendigo underpinned by the strength of Total our Community Bank model 201 1,935 168 1 Digital de
Slide 41: Q&A Session
06 Q&A Session
Slide 42: Closing
07 Closing Marnie Baker, Chief Executive Officer and Managing Director
Slide 43: Australia's bank of choice
Australia's 2028+ Creating bank of sustainable returns Supported by choice Well managed cost base Growing above system in deposits and lending, within capital allocation hurdles FY24–FY28 Australia’s bank FY18–FY23 of choice Foundational Australia’s most trusted bank Leading trust and advocacy d
Slide 44: Important information
Important information This document is a presentation of general background information about the Group’s This presentation does not constitute an offer to sell, or the solicitation of an offer to activities current at the date of the presentation. It is information in a summar y form and no buy, an
Slide 45: Reporting Suite — prioritising our approach
Reporting Suite — prioritising our approach We leverage a range of global and domestic frameworks and guidance to focus on the risks and opportunities that matter United Nations Sustainable Development Goals 05 10 11 13 Gender Equality Reduced inequalities Sustainable cities and communities Climate
Slide 46: Shareholder Centre
Shareholder Centre 1H24 Results Annual Corporate Investor Sustainabilit y Presentation Financial Governance Calendar Report www.bendigoadelaide.com.a Report Statement www.bendigoadelaide.com.a including Climate-related u/globalassets/documents/ www.bendigoadelaide.com.a www.bendigoadelaide.com.a u/i