Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Investor Presentation (December 2008)
20 slides from Bendigo & Adelaide Bank's investor presentation, Dec 3, 2008
Slide 1: Shareholder Information Sessions - Presentation
Bendigo and Adelaide Bank Limited ASX Announcement 3 December 2008 For personal use only Shareholder Information Sessions - Presentation A copy of the presentation to shareholders on the Bank’s Share Purchase Plan is attached. Details: Will Rayner Head of Investor Relations 0437 794 366 08 8220 7764
Slide 2: Bendigo and Adelaide Bank Share Purchase Plan
For personal use only Bendigo and Adelaide Bank Share Purchase Plan 11 August 2008 Shareholder information sessions – December 2008 bendigobank.com.au adelaidebank.com.au1
Slide 3: Agenda
For personal use only Agenda 1. Share Purchase Plan 2. Trading conditions 3. National footprint 4. Our customers 5. Our brand 6. Credit quality 7. Funding 8. Summary 2
Slide 4: Share Purchase Plan
For personal use only 1. Share Purchase Plan Offer to purchase up to $7000 worth of new shares at the lower of: $10 per share; or A 5 per cent discount to the average share price over 5 days leading up to 19 December 2008 - the close of the offer Offer available to existing shareholders, who
Slide 5: Trading conditions
For personal use only 2. Trading conditions Difficult trading environment Credit quality remains sound Some deterioration in isolated sectors – from a very low base No exposure to large corporate collapses Continue to forecast growth in cash EPS (FY09) Excellent growth in retail deposits
Slide 6: National footprint
For personal use only 3. National footprint 413 branches 224 Community Bank branches 164 Bendigo Bank corporate-owned branches 25 Adelaide Bank branches 61 added in FY08 (including 25 Adelaide Bank branches) 94 Agencies 614 ATM’s 13,500+ EFTPOS merchants across Australia 300+ branc
Slide 7: National footprint: Cumulative Number of Branches by Channel
For personal use only 3. National footprint 413 branches 5 39 85 Cumulative Number of Branches by Channel (as at Oct 2008) 36 50 400 180 ACT 3 Branches 300 15 200 100 0 <93 93 94 95 96 97 98* 99 00 01 02 03 04 05 06 07 08 YTD 09 Financial Year Company Owned Community Bank Private Franchises Alliance
Slide 8: Community Bank network remains relatively immature
For personal use only 3. National footprint Community Bank® network remains relatively immature Footings growth strongest in first seven years of branch life Strong reverse enquiry demand for future growth 28% of branches established less than 3 years old 70% of branches established less than 7
Slide 9: Our customers
For personal use only 4. Our customers Direct Direct customer numbers continue to grow at 75,000 per year1 Direct customers now more than 1.3m Customer satisfaction levels remain high Partner Advised 500+ partners 3500+ advisers 250,000+ customers via this channel Provides access to mo
Slide 10: Customer Satisfaction
For personal use only 4. Our customers Retail Banking Customer Satisfaction Business Banking Customer Satisfaction 100% 100% 90% 90% 94% 90% 80% 80% 70% 72% 75% 70% 60% 60% 50% 50% Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Bendigo Bank Big Four Avg Bendigo Bank Big Four A
Slide 11: Our brand
For personal use only 5. Our brand 10
Slide 12: Credit quality
For personal use only 6. Credit quality Credit quality remains sound across the group Some deterioration in isolated sectors Strong industry diversity Strong geographical diversity Both heritage banks had low risk appetites (and have not increased risk appetite as a result of the merger)
Slide 13: Credit quality: Residential lending
For personal use only 6. Credit quality Residential lending 90+ day arrears levels are increasing – from a very low base Of those in 90+ day arrears: Average historical LVR is 60.95% 65.8% are fully verified 34.2% are lo-doc LMI insurance covers more than 65% of all MIP loans 12
Slide 14: All Residential Loan Arrears - 90d+ rate by balance
For personal use only 6. Credit quality All Residential Loan Arrears - 90d+ rate by balance $350m 1.20% $300m 1.00% $250m 0.80% $200m 0.60% $150m 0.40% $100m 0.20% $50m $0m 0.00% Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Se
Slide 15: Credit quality: Commercial, margin and consumer lending
For personal use only 6. Credit quality Commercial and business lending Top 25 exposures = $707.3m (1.45% of total assets) Only 6 loans greater than $30m All top exposures performing well Diversity by geography and industry Margin Lending Exceptional credit performance Business model has
Slide 16: Funding
For personal use only 7. Funding Strong deposit growth in first quarter $2b inflows in first quarter FY09 Securitisation markets remain effectively closed Offshore wholesale markets remain effectively closed Domestic wholesale markets are open and operating 15
Slide 17: Funding: Deposits per branch and term deposit growth
For personal use only 7. Funding Deposits per Community Bank® branch ($m) CAGR 26.1% 44.5 46.9 38.4 37.6 33.0 26.4 20.4 16.4 16.4 6.6 11.7 <1 1 2 3 4 5 6 7 8 9 10 Age of branch in years At call v term deposits FY08 7.56 Term deposit growth FY08 ($bn) 7.26 7.03 6.85 53.5% 6.71 6.56 6.48 6.31 6.21 6.1
Slide 18: Summary: Current conditions
For personal use only 8. Summary Current conditions Attractive SPP – ability for shareholders to share in our growth plans Tough trading environment Strong brand Excellent customer engagement High level of staff satisfaction Growing distribution foot print Good asset quality High lev
Slide 19: Summary: The future
For personal use only 8. Summary The future We remain confident about achieving our objectives There remains strong demand for our differentiated: Style of banking Business model Partnership approach We will remain relevant and connected to create sustainable value for shareholders We
Slide 20: Questions
For personal use only Questions 19
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