Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — RBS Regional Banks Conference 2009
21 slides from Bendigo & Adelaide Bank's conference presentation, Nov 19, 2009
Slide 1: Bendigo and Adelaide Bank RBS – Regional Banks conference
For personal use only Bendigo and Adelaide Bank RBS – Regional Banks conference Driving profitable growth November 19, 2009 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 Financial Report as disclo
Slide 3: Agenda
For personal use only Current market conditions Business update Great Southern Summary Agenda 3
Slide 4: Current market conditions
Unem ploy ment Ra tes (Third quarter 20 09 ) Our resilient economy United State s 9.5% E uro Are a 9.1% Australia has weathered the GFC to date United Kingdom 7.9% For personal use only Proven to be a stable economy with improving economic indicators Ca nada 7.6% New Zea land 5.8% A strong fin
Slide 5: Our ongoing response to a volatile market
Our ongoing response to a volatile market Restructured our balance sheet For personal use only – Leveraged retail network early to meet funding needs – Reduced funding risk – Short term negative NIM impact in 2008-09 Capital flexibility – ~$300m fully underwritten equity capital raising in Augus
Slide 6: We continue to invest in our retail network
For personal use only We continue to invest in our retail network 1.4 million customers (11% growth in 12 months to September 09) – 11,000 new customers per month (7,000 net) 1.9 products per person 434 branches – 191 Bank owned branches Retail Term – 243 Community Bank® branches $13.1bn Depos
Slide 7: Community Bank remains a growth engine
Community Bank® remains a growth engine Community Bank® branches by age For personal use only 35 30 25 No. of branches 20 20 branches opened in FY09 15 c20-25 branches to be opened in FY10 10 5 Community Bank® network remains 0 relatively immature <1 1 2 3 4 5 6 7 8 9 10 11 Liability growth
Slide 8: Our Community and Customer focus differentiates BEN
Our Community and Customer focus differentiates BEN and provides BEN significant opportunities For personal use only Our retail brand is strongly differentiated and the Bank enjoys high levels of customer trust and advocacy. The significant trust that BEN has earned is a key strength of BEN and its
Slide 9: Fundamentals remain attractive for margin lending
Fundamentals remain attractive for margin lending Customer appetite for risk and gearing is improving Independent margin loan provider of choice For personal use only Strong long term relationships with many financial advisory firms Continued excellent credit quality Capacity for significa
Slide 10: Now capitalising on third-party mortgages
Now capitalising on third-party mortgages Opportunity now to grow the business For personal use only Partners desire a genuine 5th funding alternative Commissions have been adjusted Focus shifting to growth Third party mortgages Originations pe r month ($M) Portfolio size ($M) Variable cos
Slide 11: Balance sheet restructured
Balance sheet restructured 100% W holesale Retail For personal use only 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Business update *On-balance sheet funding 11
Slide 12: Growth in retail deposits
Growth in retail deposits Steady growth via branch network For personal use only Deposit growth before government guarantee introduced Deliberate flattening of retail deposit growth due to maintaining lower liquidity levels (as signalled to the market in April 09) FY09 retail deposits 24 Billi
Slide 13: Securitisation market
For personal use only Securitisation market Members Equity recently priced three non-AOFM deals − 8 September 2009 ¾ A$276m RMBS deal ¾ Priced at 175 bps for AAA rated A1 bonds − 15 September 2009 ¾ A$1.255bn RMBS deal ¾ Priced at 150bps for AAA rated A1 bonds − 17 November 2009 ¾ A$780m RMBS deal
Slide 14: Net interest margin
Net interest margin Strong rebound For personal use only Sustainable improvement Balance sheet restructure complete Positively leveraged to a rising interest rate environment Further potential upside if wholesale markets improve Continued focus on growth at profitable prices 3.00% Monthl
Slide 15: Cost to income
Cost to income Improving ratio due to continuing merger synergies For personal use only Success of unpaid leave initiative − Maintaining and retaining capacity for growth in the network % 130 Monthly cost to income ratio* 120 110 100 90 80 70 60 50 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-1
Slide 16: Portfolio status
Portfolio status The loan portfolio continues to amortise Repayment of loans in full have increased over the past month For personal use only The number of borrowers is reducing (as loans paid-out) Date August-09 September-09 October-09 Portfolio Balance $539m $526m $510m ( 5%) No. of borrower
Slide 17: Arrears management
Arrears management The Bank recently increased the recovery action on loans in arrears For personal use only Credit arrears continue to improve and represent approximately one third of total arrears Delinquent borrowers are split into Strategic and Credit arrears − Strategic borrowers are thos
Slide 18: Represented borrowers
Represented borrowers A number of borrowers are now represented by law firms investigating the prospect of pursuing a class action on behalf of growers For personal use only No actions have been commenced The Bank is confident of its position in respect to potential claims made to date A rec
Slide 19: Outlook
For personal use only Outlook Planning for uncertain times Continued focus on the fundamentals of our business Strength of franchise continues to provide sustainable profitable growth Genuine demand and appetite for a real banking alternative Capital available to exploit growth opportunities
Slide 20: Questions
For personal use only Questions 20
Slide 21: Investors contact
For personal use only Investors Will Rayner Head of Investor Relations and Corporate Affairs Bendigo and Adelaide Bank Limited Level 3 169 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 21
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