Bell Financial Group Limited · ASX:BFG
Bell Financial — FY2023 Earnings Presentation
20 slides from Bell Financial's earnings presentation, Feb 16, 2024
Slide 1: Bell Financial Group 2023 Full Year Results
BELL FINANCIAL GROUP LTD (ASX:BFG) 2023 FULL YEAR RESULTS A diversified financial services and wealth management business, with strong growth potential driven by an ongoing focus on people, technology and products 16 FEBRUARY 2024
Slide 2: Contents
CONTENTS 1 FY2023 at a glance 3 2 Strategy: Positioned for Growth 5 3 FY 2023 Group Results 8 4 FY 2023 Performance by Business 12 5 Bell Financial Group 17
Slide 3: FY2023 at a Glance
FY2023 AT A GLANCE BELL FINANCIAL GROUP
Slide 4: FY2023 at a Glance
FY2023 AT A GLANCE REVENUE PROFIT AFTER TAX FUNDS UNDER ADVICE $247m $24.3m $79.8bn 4.0% increase on 2022 5.3% decrease on 2022 9.6% increase on 2022 EARNINGS PER SHARE DIVIDEND PER SHARE RETURN ON EQUITY 7.6¢ share 7.0¢ share 15.0% 5.0% decrease on 2022 No change on 2022 4.5% decrease on 2022 Solid
Slide 5: Strategy: Positioned for Growth
STRATEGY: POSITIONED FOR GROWTH
Slide 6: Unlocking Growth Potential by Focusing on People, Technology and Products
UNLOCKING GROWTH POTENTIAL BY FOCUSING ON PEOPLE, TECHNOLOGY AND PRODUCTS People • Evaluating opportunities to grow our team through both internal and external channels • Developing our next generation of Advisers and Managers through our Emerging Leaders Program • Building on relationships across o
Slide 7: Building Recurring Revenues
BUILDING RECURRING REVENUES Our investment in Technology & Platforms and Products & Services creates the foundations for ongoing growth • Our Technology & Platforms and Products & Services businesses delivered record revenue and earnings for the 10th consecutive year • Their combined contribution re
Slide 8: FY2023 Group Results
FY2023 GROUP RESULTS BELL FINANCIAL GROUP
Slide 9: Steady Earnings in Challenging Market Conditions
STEADY EARNINGS IN CHALLENGING MARKET CONDITIONS Revenue ($M) Earnings Per Share (Cents) Dividend Paid ($M) and Gross Profit After tax ($M) Dividend Yield (%) 350 16 50 46.7 40 40.0% 44.1 14 45 35 35.0% 300 14.6 13.8 35.3 299.3 40 33.6 292.1 12 30 30.0% 250 35 32.4 254.5 247.0 237.5 10 25 25.0% 10.2
Slide 10: Strong Balance Sheet with No Core Debt
STRONG BALANCE SHEET WITH NO CORE DEBT The Group is in a strong financial position. We have a solid $114 million cash-backed balance sheet. EBITDA Margin BFG Share Price Movement January 2019 - December 2023 150% $2.00 25% 23.4% $1.75 22.6% 20% 100% 19.3% $1.50 17.1% 15% 16.4% 50% $1.25 $1.00 10% 0%
Slide 11: Funds Under Advice Continue to Grow
FUNDS UNDER ADVICE CONTINUE TO GROW Funds Under Advice ($B) CHESS Sponsored Holdings ($B) FUA - PAS and Superannuation Assets ($B) 90 90 5.1 80 76.3 5 4.5 80 79.8 4.2 4.2 0.7 70 75.9 69.0 4.1 72.8 70 66.0 0.7 4 0.7 0.7 60 63.9 57.5 0.7 60 35.6 58.4 52.1 50 32.5 50 31.5 3 40 26.5 40 22.0 4.4 30 2 3.8
Slide 12: FY2023 Performance by Business
FY 2023 PERFORMANCE BY BUSINESS
Slide 13: Broking, Technology & Platforms, Products & Services
BROKING TECHNOLOGY & PLATFORMS PRODUCTS & SERVICES RETAIL AND INSTITUTIONAL Five distinct business units operate within Third Party Platform: • Retail Equities • Bell Potter Portfolio Lending (Domestic and International) 1. Private Client online share trading platform • Bell Financial Trust • Instit
Slide 14: Broking – Retail & Wholesale
BROKING – RETAIL & WHOLESALE Leveraged to markets • Our Institutional, Retail, Commodities and FX desks generated $95 million in revenue, down 8% on the p.c.p. • Our Equity Capital Markets (ECM) division put in another noteworthy performance despite the many factors weighing on financial markets • T
Slide 15: Technology & Platforms
TECHNOLOGY & PLATFORMS Leveraged to scale Our Technology & Platforms business continues to deliver consistent growth in revenue, profit and sponsored holdings. We expect growth in this business will continue. • $36.4 million in Revenue (19.7% increase on 2022) • $8.2 million Profit After Tax (32.8%
Slide 16: Products & Services
PRODUCTS & SERVICES Leveraged to distribution Products & Services revenue and earnings have grown consistently over an extended period. Revenue ($M) Profit After Tax ($M) • $44.5 million in Revenue (6.2% increase on 55 2022) 12 50 44.5 12.0 • $12 million Profit After Tax (7.9% increase 45 39.9 41.9
Slide 17: Bell Financial Group
BELL FINANCIAL BELL FINANCIAL GROUP
Slide 18: Highly Experienced Management Team and Board
HIGHLY EXPERIENCED MANAGEMENT TEAM AND BOARD • We have a professional board with a deep industry understanding and decades of experience • A deliberately flat management structure that is experienced, stable and has a substantial shareholding in the business • Alastair Provan retired during the year
Slide 19: A Diversified Financial Services Business
A DIVERSIFIED FINANCIAL SERVICES BUSINESS An Australian-owned business with global reach and a history of growth and innovation. LONDON NEW YORK HONG KONG KUALA LUMPUR ▪ 11 offices across Australia plus offices in London, New York, Hong Kong and Kuala Lumpur AUSTRALIA 1970 2001 2003 2007 2008 2012 2
Slide 20: 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