Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — FY2003 Earnings Presentation
39 slides from Bendigo & Adelaide Bank's earnings presentation, Aug 11, 2003
Slide 1: 2003 profit announcement
2003 profit announcement Craig Langford Chief Financial Officer Mike Hirst Chief General Manager Strategy & Solutions Rob Hunt Group Managing Director
Slide 2: Financial results
Financial results Craig Langford Chief Financial Officer ; I pe
Slide 3: Continuing momentum
| © Bendigo Bank Continuing momentum Profit increased by 21% to $59 million Earnings per share up by 14% to 46.8 cents Continuing business growth Solid asset quality Final dividend up 3.0 cents to 20.0 cents Full year dividend increased 4.5 cents to 33.5 cents
Slide 4: Performance summary
| © Bendigo Bank | Performance summary Net profit after Income Tax Return on Average Assets Return on Average Equity Eamings er Shao Expense to Income Ratio YearendAssets Year end Capital General Provision d/debts 2002 ~ $48.8m 0.65% 10.2% 4110 70.4% $7,968m $9,25 $494m 0.79%
Slide 5: Operating profit - after tax
| © Bendigo Bank Operating profit - after tax Ag Millions 70 60 50 40 30 20 10 a]
Slide 6: Net interest margin
| @© Bendigo Bank Net interest margin 3.00 2.80 2.60 2.40 2.20 2.00 %
Slide 7: Non interest income at June 2003 $124.3m
| © Bendigo Bank Non interest income at 30 June 2003 $124.3m 34% Deposit A/c, Transaction & Service Fees 17% Loan Fees 16% Camprissions 10% Share of Associates net profit/{loss} = = a ie 9% Securitisation Trustee, Management & Other Service 4% Insurance Commissions ME 3% Other
Slide 8: Contributions
| © Bendigo Bank Contributions 10 © OPN WE aD 4 Bw
Slide 9: Efficiency ratio Operating expenses / income
| @ Bendigo Bank Efficiency ratio Operating expenses / income 73 FABS Aquis wey % 70
Slide 10: Total assets
l @© Bendigo Bank Total assets Ad Malions 12,000 10,000 8,000 6,000 4,000 2,000
Slide 11: Lending approvals
| @© Bendigo Bank Lending approvals 4S Mikons 6,000 5,000 - 4,000 32.6% 3,000 2,000 1,000 0
Slide 12: Retail deposits
| @ Bendigo Bank Retail deposits Ad Mitions 9,000 8,000 7 O00 6,000 §,000 4,000 3,000 2,000 i y | ' u
Slide 13: Commercial loans at June 2003 ($1446m)
© Bendigo Bank Commercial loans at 30 June 2003 ($1446m) i _ = ue i al ine ea 35% 14% 11% 15% 6% 5% A% 3% Property & Business Services Other Retail Trade Agriculture, Forestry & Fishing Construction Accommodation, Cafes & Restaurants Manufacturing Health & Community Service Wholesale trade Transport
Slide 14: Loan portfolio
| @ Bendigo Bank Loan portfolio By purpose By security ‘Commercial Unsecured
Slide 15: Geographic spread
| © Bendigo Bank | Geographic spread Deposits Loans vic cy QLD = NSW ua WA, CATA AT oy sa) RULTLEUIUTLERTLLE - MM 2% «TAS _ © 6% Others =
Slide 16: Non-accrual loans
l @© Bendigo Bank | Non-accrual loans Ad Mitions 30 25 20 15 10 5 Net Non Accural
Slide 17: Asset quality: impaired loans / total assets
| @© Bendigo Bank Asset qual ity Impaired loans / total assets 0.7 0.6 0.5 0.4 0.3 0.2 0.1 %
Slide 18: Provision for doubtful debts
l @© Bendigo Bank Provision for doubtful debts AS Millions. 60 50 40 30 20 10 June 2003
Slide 19: Capital adequacy
l @© Bendigo Bank Capital adequacy 14 10.03
Slide 20: Return on equity
l @© Bendigo Bank Return on equity % Return on equity has been restated in prior periods to reflect the impact of accounting standard AASB1044
Slide 21: Earnings per share
l @© Bendigo Bank Earnings per share
Slide 22: Wealth Management, Co. structure & alliances
Wealth Management, Co. structure & alliances Mike Hirst Chief General Manager Strategy & Solutions
Slide 23: New structure driving organisation
| © Bendigo Bank | New structure driving organisation Two distinct focuses: - Retail (customer and community contact) - Solutions (build and deliver products to Retail) « Strategic initiatives team under M.D. « New focus on cards business « Group delivery of shared services « Strategic redesign of |
Slide 24: Wealth Management
| © Bendigo Bank Wealth Management « Acomplementary financial services product range « All entities under the one banner « Distribution and partnerships « STLresponsible entity for funds management » Specialist investment managers (eg. IML, IOOF) « Easily understood fund offerings » Expanded financi
Slide 25: Funds under management
| © Bendigo Bank Funds under management ASMil lions Sandhurst Mortgage & Cash Funds | Sandhurst Industrical Share Fund Bendigo Superannuation Plan General Retirement Plan Diversified Funds Premier Global Select Fund Bendigo Managed Funds Total 2001 2002 2003_~- 863.0 O 1195.2 30.2 Sree 73.7 146.8 -
Slide 26: Wealth Management contribution
l @© Bendigo Bank Wealth Management contribution AG Millicy a ~ Oo o co) in o
Slide 27: Proven ability with alliances
| © Bendigo Bank Proven ability with alliances Community Bank® » 43% increase in business « $8.4m contribution « 100 branch opened (30 launched in 2002/03) « BBL granted Community Bank® trademark Tasmanian Banking Services « $117m growth ($245m portfolio) « 5 branches and 14,000 account-holders « Pr
Slide 28: Proven ability with alliances
| © Bendigo Bank | Proven ability with alliances Pharmacy Banking « $113m portfolio » New origination partners signed Elders Rural Bank » $19m net profit after tax « $136m of business referred to ERB from Bendigo Agencies » 20% growth in business Community Sector Banking « $33.3m portfolio
Slide 29: Strategy, performance & the future
Strategy, performance & the future Rob Hunt Group Managing Director l i i le
Slide 30: Consistent strategy since 1995
| © Bendigo Bank Consistent strategy since 1995 Mission Statement We focus on building and improving the prospects of our customers, communities and partnerships in order to develop sustainable earnings and growth for the business and thus provide increasing wealth for our shareholders “Successful c
Slide 31: Bendigo style of banking
| © Bendigo Bank | Bendigo style of banking Differentiate and build strong brand & position « Create strong commitment to buy « Blend face-to-face and technology to deliver banking solutions with a strong customer focus « Open new markets » New products to strengthen relationships “Building the capa
Slide 32: Value created
| © Bendigo Bank Value created Over the past 3 years, Bendigo Bank has been 29th best value creator in the Australian market (16th over 5 years). Maintaining this momentum improves the prospect of further increasing value as the performance improves (as planned).
Slide 33: Creating shareholder value by:
| © Bendigo Bank Creating shareholder value by: » Rapidly expanding distribution and product range « Growing revenue sustainably (buyer commitment) « Progressively building profitability » Establishing a strong brand, positioning, identity « Align objectives with our buying base « Improving efficien
Slide 34: In years, Bendigo has:
| © Bendigo Bank In 5 years, Bendigo has: « Increased profit by 315% » Grown market value by 447% (now $1 billion) « Improved EPS by 61% « Tripled branch numbers to 251 « Tripled assets under management « Successfully launched ‘C-commerce’ initiatives « Generated strong growth in interstate business
Slide 35: Successes in 2003
| © Bendigo Bank Successes in 2003 Improved profit performance by 20% Increased EPS and DPS Strong retail deposit growth continues Strong lending and asset growth continues Improved contribution from new businesses Improved asset quality Strong contribution by all subsidiary companies
Slide 36: Investments continued in 2003
| © Bendigo Bank Investments continued in 2003 « Grew Wealth Management in difficult market » Continue to enhance risk management « Opened 37 new branches « Continued to grow skill base » Building community capacity to enhance markets « Implementing continuous improvement strategy » | Grew business
Slide 37: Why our progress will continue
| Bendigo Bank Why our progress will continue « ‘The emotional key’ - unique position, strong customer focus (strong approval and advocacy ratings) « Strong demand for Bendigo solutions » Increasing contribution of new businesses » Wealth Management revenue growth » Great team aligned to strategy an
Slide 38: The future
| © Bendigo Bank The future » Further network growth (30-plus branches) « Newcommunities and customer groups » Expand Wealth Management and advice » Growing business banking volumes » Strong e-bank growth and new facilities » Solid increase in revenue base expected « Further improved profitability a
Slide 39: Questions
| © Bendigo Bank Questions Bendigo Bank 2002/03 profit announcement
Bendigo and Adelaide Bank — FY2003 Earnings Presentation on 6ix