Bendigo & Adelaide Bank Ltd. · ASX:BEN

Bendigo & Adelaide Bank — Investor Presentation (August 2009)

21 slides from Bendigo & Adelaide Bank's investor presentation, Aug 4, 2009

  1. Slide 1: Bendigo and Adelaide Bank Market update

    For personal use only Bendigo and Adelaide Bank Market update August 4, 2009

  2. Slide 2: Disclaimer

    This document is a presentation of general background information about the Group’s activities For personal use only current at the date of the presentation. It is information in a summary form and does not purport to be complete. It is not intended to be relied upon as advice to investors or potent

  3. Slide 3: Agenda

    For personal use only • Great Southern update • Credit quality • Trading conditions and guidance Agenda 1

  4. Slide 4: Great Southern

    For personal use only Great Southern 2

  5. Slide 5: Portfolio characteristics

    For personal use only Portfolio characteristics • BEN exposure is $556m across 8,200 individual borrowers • Scheduled principal amortisation of approx $7m per month • 90 days+ arrears for the 12 months prior to appointment of a receiver averaged 1.1% • 90 days+ arrears averaged 2.3% end June 2009 •

  6. Slide 6: Borrower characteristics

    Borrower characteristics Great Southern For personal use only Borrower profile* % of portfolio Income > $100k 82% Net assets > $500k 70% Loan balances < $250k 76% Professional (by occupation) 60% Great Southern *% based on value of loans as at 30 June 2009. Income and net assets at loan origination.

  7. Slide 7: Management structure

    For personal use only Management structure • Project team established separate from the business • Experienced credit/structuring Executive recruited to manage project, reporting directly to CEO • Board oversight through dedicated sub-committee • Established investor help centre • Appointed legal an

  8. Slide 8: Management approach

    For personal use only Management approach • Recognition that interests of BEN and borrowers are aligned in relation to maximising value in schemes • Appointed Grant Samuel to assist with assessing, developing and valuing scheme options • Negotiating active involvement with receiver • Delinquent borr

  9. Slide 9: Strategic v credit arrears

    For personal use only Strategic v credit arrears Strategic Credit Strategic arrears = 14% borrowers who have elected to stop paying and have the 12% capacity to repay 10% 8% 6% 4% 2% 0% 1-30 days 31-90 days 90+ days Total Great Southern Note: Percentages based on value of loans in arrears at 30 June

  10. Slide 10: Strategic arrears

    For personal use only Strategic arrears Borrower Net assets to loan value at draw down income <2x 2x 3x 4x >5x Strategic arrears - borrower income < $100k $1.8m $0.5m $0.4m $0.5m $6.9m <$100k $500k+ 16% $100k - $150k $0.7m $0.4m $0.5m $0.3m $6.9m 24% $150k - $200k $0.6m $0.1m $0.1m $0.9m $6.3m $100k

  11. Slide 11: Credit quality

    For personal use only Credit quality 9

  12. Slide 12: Low-risk exposures

    Low-risk exposures • 77% of book secured by residential For personal use only Portfolio Security mortgages and listed securities • Residential lending 2% 8% – recent improvement in arrears – in the main, home lenders remain 8% ahead on repayments • Margin lending – average LVR 43%, 13% – 85% of port

  13. Slide 13: Commercial lending

    For personal use only Commercial lending • Customers are managing 2.60% Commercial loan arrears - 90d+ rate by balance economic conditions well 2.40% 2.20% • Focus on small family, privately 2.00% 1.80% owned businesses 1.60% 1.40% • Majority freehold secured – 1.20% 1.00% limited balance sheet lend

  14. Slide 14: Signs of improvement

    Signs of improvement Credit quality For personal use only 90+ day arrears improving across the vast majority of our asset base Consumer Loans - 90d+ arrears & delinquency Residential Loan Arrears - 90d+ rate by balance 2.00% 1.40% Personal Loan Arrears % Visa Delinquency % 1.30% 1.80% 1.20% 1.60% 1.

  15. Slide 15: Specific provisions

    For personal use only Specific provisions $m Jun-08 Jun-09 40 35 30 4 problem loans, $21.5m 25 20 15 10 100% Great Southern 5 0 Consumer Mortgages Commerical Loans Portfolio Funding Wealth Financing Credit quality 13

  16. Slide 16: Total provisions

    For personal use only Total provisions Total group provisions of $198.1m as at June 2009 0.51%* 0.41%* 67.7 0.32%* 0.34%* 41.0 18.0 22.1 44.3 32.5 36.8 37.1 80.8 76.2 78.8 86.1 Dec-07 Jun-08 Dec-08 Jun-09** General Collective Specific Credit quality *Percentage of total assets **Subject to final Aud

  17. Slide 17: Profit performance

    For personal use only Profit performance 15

  18. Slide 18: Trading conditions

    For personal use only Trading conditions • NIM recovering as outlined in April market update • Maintained strong retail funding position • Focus on expense management whilst maintaining capacity for upturn • Continuing to invest (new branches, ERB and Macquarie margin lending) Profit performance 16

  19. Slide 19: Guidance

    Guidance Profit performance For personal use only Cash EPS (cents) April FY09 guidance 70-75 Additional Great Southern provisions (5) Additional specific provisions (3) Guidance FY09 (approx) 63 Impairment review now completed, no goodwill impairment expected FY09* Profit performance *Subject to fin

  20. Slide 20: Questions

    For personal use only Questions 18

  21. Slide 21: Details

    For personal use only Details Will Rayner Head of Investor Relations Bendigo and Adelaide Bank Limited Level 5 169 Pirie Street Adelaide South Australia 5000 Tel: +61 8 8220 7764 Mob: +61 437 794 366 Fax: +61 8 8300 6839 Email: wrayner@adelaidebank.com.au Contact 19

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