Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Macquarie 12th Annual Australia Conference (May 2011)
18 slides from Bendigo & Adelaide Bank's conference presentation, May 6, 2011
Slide 1: Business update: Why Bendigo banks on the community
For personal use only Business update: Why Bendigo banks on the community Macquarie 12th Annual Australia Conference Richard Fennell – Chief Financial Officer May 6, 2011 1
Slide 2: Disclaimer
Disclaimer: This document is a presentation of general background information about the Group’s activities 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 For personal use only investo
Slide 3: Agenda
For personal use only 1. Credit rating 2. Business update 3. The Community Bank® model a. How it works b. Performance Agenda 3
Slide 4: Fitch Ratings has upgraded BEN from BBB+ to A-
Fitch Ratings has upgraded BEN from BBB+ to A- For personal use only "BEN has strengthened its Australian retail banking franchise in a challenging operating environment for banks” “The upgrade… reflects this strengthening, taking into account BEN's conservative approach to risk management and stabl
Slide 5: Capital levels and opportunities support new rating
Capital levels and opportunities support new rating For personal use only • APS 120 interpretation requires one-off capital adjustment • Still a low-risk balance sheet with appropriate capital reserves Credit rating 5
Slide 6: Credit remains sound
Credit remains sound For personal use only • We are adequately provisioned for Victorian and Queensland floods • 551 residential mortgage customers, and 103 commercial loan customers affected by flooding – these customers have been provided with three month payment holidays, capitalised interest or
Slide 7: Above system growth – assets and liabilities
Above system growth – assets and liabilities For personal use only Business update *APRA statistics – 12 months to March 2011, sourced from Credit Suisse ‘Bank Market Shares’ report dated 29 April 2011 7
Slide 8: Economies of scale and future growth
Economies of scale and future growth • Strong demand for Community Bank® branches continues • More than 50+ in pipeline For personal use only Community Bank® branches by age Business update *Includes 260 Community Banks® 8
Slide 9: We maintain industry leading customer satisfaction levels
We maintain industry leading customer satisfaction levels For personal use only Business update Source: Roy Morgan Research Customer Satisfaction – January 2011 9
Slide 10: How the Community Bank model works
How the Community Bank® model works For personal use only • Reverse enquiry franchise model with local communities • Broad-based local ownership for each community company • BEN provides capital for balance sheet, banking infrastructure and credit • Community capital is solely for initial working ca
Slide 11: Community Bank model has proven to be robust and sustainable
The Community Bank® model has proven to be robust and sustainable For personal use only • Communities have proven to be great partners in banking, and together we have opened more than 270 branches in 12 years (more than 65 in the last three years) • More than $50m in Community grants over 12 years
Slide 12: Dividends for the community
Dividends for the community For personal use only 1. Create or retain banking infrastructure in the community 2. Strengthening local business and commerce 3. Building the community balance sheet 4. Shareholder dividends The Community Bank® model – how it works 12
Slide 13: Community Bank company net equity performance
• 90% of companies either still drawing down capital or in capital generation phase For personal use only • Of the 10% that have negative net equity, 50% are sites recently or currently affected by drought • 4 companies with negative net equity made profits in 2010 • Those companies with low or nega
Slide 14: Community Bank company profitability
• 66% of companies posted a profit for FY10 For personal use only • Profit correlates strongly with maturity as you would expect • 9% had losses as a result of branch expansion or significant community grants • Of the remaining 25% that declared a loss: – 70% were < 3 years of age and budgeted to ma
Slide 15: Community contributions
• 144 companies declared contributions to local community For personal use only purposes totalling $11.7m in FY10 • Average contribution for sites >3 yrs of age = $102k • 39% made contributions >$50k • 30% made contributions >$100k • 14% made contributions >$200k The Community Bank® model - performa
Slide 16: Shareholder dividends
• 48% of companies paid shareholder dividends For personal use only • 58% of sites >3 yr of age paid shareholder dividends • Average shareholder dividend yield is 8.4% • Yield increases strongly with age The Community Bank® model - performance Source: Company data, Community Bank® annual reports 16
Slide 17: Questions
For personal use only Questions 17
Slide 18: Investor relations contacts
For personal use only Will Rayner Terry Fountas Head of Capital and Investor Relations Senior Manager Investor Relations Bendigo and Adelaide Bank Limited Bendigo and Adelaide Bank Limited Tel: +61 8 8220 7764 Tel: +61 8 8220 7730 Mob: +61 437 794 366 Mob: +61 437 650 913 Email: will.rayner@bendigoa
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