Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Merger or Acquisition (October 2010)
11 slides from Bendigo & Adelaide Bank's merger presentation, Oct 26, 2010
Slide 1: Purchase of remaining stake in Rural Bank
For personal use only Bendigo and Adelaide Bank Purchase of remaining stake in Rural Bank October 26, 2010 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 to be read in conjunction with the Bank’s full year results filed with Fo
Slide 3: Agenda
For personal use only • Overview • Business fundamentals • Outlook Agenda 3
Slide 4: Transaction details
Transaction details For personal use only • Purchase of remaining 40% in RB • Elders Limited receives $165m or 1.18x book value3 • EPS and ROE accretive immediately • Transaction expected to settle in FH20114 • Elders will be paid a special dividend for share of profit up to settlement • Distributio
Slide 5: A well performing specialist bank
A well performing specialist bank For personal use only • Rural Bank (formerly Elders Rural Bank) formed in 1999 • Initially a joint venture between Bendigo Bank and Elders Limited • 32,500 customers • 6.2% market share (ag sector) • 128 FTE staff • Continued growth in profit • History of strong cre
Slide 6: Solid foundations for growth
Solid foundations for growth For personal use only A quality loan book and balance sheet • Circa $3.7bn in loans • More than 98% retail funded • $55.4m NPAT FY10 • Credit quality remains sound – despite prolonged drought across Australia Distribution platform • Strong proven relationship between BEN
Slide 7: Diversified business
Diversified business For personal use only • Diversity by industry and • Reflects comprehensive geography national distribution network Business fundamentals 7
Slide 8: Low risk funding
Low risk funding For personal use only • 98% retail retail funded • Leveraging core strengths of Elders branch network Business fundamentals 8
Slide 9: Credit quality
Credit quality For personal use only • 90 days past due $78m • Non-performing loans 1.9% • FY10 credit losses were $8.8m or 0.23% of loans • Approved facilities for irrigation intensive agriculture (including Murray Darling Basin) is approximately 3% • Commodity prices strengthening • Drought broken
Slide 10: Strong – low risk acquisition
Strong – low risk acquisition For personal use only • No integration risk • Potential ratings upside for Rural Bank • Supports ratings momentum for BEN • Purchase will better enable BEN to support RBL’s expansion • Reinforces BEN’s commitment to rural and regional Australia • Diversifies BEN’s earni
Slide 11: Contact
Analysts Media For personal use only Will Rayner Lauren Treacy Head of Capital and Investor Relations Head of Media and Communications Bendigo and Adelaide Bank Limited Bendigo and Adelaide Bank Limited Tel: +61 8 8220 7764 Tel: +61 3 5485 7109 Mob: +61 437 794 366 Mob: +61 407 340 283 Email: wrayne
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