Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — H1 2019 Earnings Presentation
53 slides from Bendigo & Adelaide Bank's earnings presentation, Feb 11, 2019
Slide 1: Results Presentation
Results Presentation For the half year ended 31 December 2018 Bendigoand > prbeeak..
Slide 2: Environment and overview
Environment and overview Financial performance Summary Appendices Marnie Baker Travis Crouch Managing Director Chief Financial Officer > | Bendigoand AdelaideBank 2
Slide 3: Australia's bank of choice
Australia’s bank of choice > | Bendigoand AdelaideBank 3
Slide 4: Challenging environment
Challenging environment Importance of trust Subdued banking sector For personal use only Advancements in technology Uncertainty and disruption GB Changing customer preferences Industry under intense scrutiny > | Bendigoand AdelaideBank
Slide 5: Australia's Bank of Choice
me cena! USeonly Australia’s Bank of Choice OUR PURPOSE To feed into the prosperity of our customers and communities, not off it REDUCE COMPLEXITY Aligned to risk appetite & true to our values OUR STRATEGY INVEST IN CAPABILITY CUSTOMERS TELL OUR STORY KEY STAKEHOLDERS — STAFF - PARTNERS - INVESTORS
Slide 6: Our strategy in action
For personal use only Our strategy in action REDUCE COMPLEXITY INVEST IN CAPABILITY Simplify the business (structure, systems, brands) an Improve efficiency through process automation Enhance and personalise customer experience Training and development of our people Increase market awareness Continu
Slide 7: Building for the future
Building for the New customers joining Customers leaving Net customer growth Av. age of new customers Year on year comparison of 3 month rolling average (end Dec 17 vs Dec 18) = = [- 5 = o [= lu 5 7) =) ra) Bendigoand AdelaideBank
Slide 8: We are well placed
For personal use only We are well placed © 9th most trusted brand in Australia‘ Roy Morgan Net Trust Score Proven business model Leading satisfaction, reputation, advocacy and trust Award-winning products and services Recognition for technology and innovation Strength in strategic partnering Solid f
Slide 9: Travis Crouch
Travis Crouch Chief Financial Officer > | BendigoandAdelaideBank
Slide 10: Financial performance
Financial performance For personal use only
Slide 11: Balance sheet and capital
Balance sheet and capital For personal use only
Slide 12: Residential mortgage growth
Residential mortgage growth For personal use only
Slide 13: Cash earnings
For personal use only ▪ ▪ ▪ ▪ ▪ Cash earnings
Slide 14: Net interest margin
Net interest margin ▪ For personal use only ▪ ▪ ▪ ▪
Slide 15: Other income
For personal use only ▪ ▪ ▪ ▪ ▪ Other income
Slide 16: Homesafe investment property portfolio
Homesafe investment property portfolio ▪ For personal use only ▪ ▪ ▪
Slide 17: Operating expenses
Operating expenses ▪ For personal use only ▪ ▪ ▪ ▪ ▪ ▪
Slide 18: Bad and doubtful debts
Bad and doubtful debts • For personal use only • • • • •
Slide 19: Arrears remain benign
Arrears remain benign For personal use only
Slide 20: Consumer division
Consumer division ▪ For personal use only ▪ ▪ • • ▪ ▪ ▪
Slide 21: Business division
Business division • For personal use only • • • •
Slide 22: Agribusiness division
Agribusiness division ▪ For personal use only ▪ ▪ ▪ ▪ ▪
Slide 23: Strong CET1 position
Strong CET1 position ▪ For personal use only ▪ ▪ ▪ ▪
Slide 24: Industry leading funding position
Industry leading funding position ▪ For personal use only ▪ ▪ ▪ ▪ ▪
Slide 25: Marnie Baker
Marnie Baker Managing Director Australia’s | bank of choice > | BendigoandAdelaideBank |
Slide 26: Uneven playing field
Uneven playing field y N (=) P= A “Although the Inquiry considers competition is generally adequate, the high concentration and increasing vertical integration in some parts of the Australian financial system has the potential to limit the benefits of competition in the future and should be proactiv
Slide 27: Brand and media recognition
VVEEREND (AUSTRALIAN © Bendigo Bank has transformed its Norwood branch into a new format which it plans to roll out nationally. ustralian-based rand and inst ution dnomn i “The bank has “Bendigo Bank is the only bank brand to “ q i Will off returned more than defy the fallout from the banking royal
Slide 28: Questions
Questions Australia’s bank of choice For personal use only > | Bendigoand AdelaideBank oa
Slide 29: Appendices
Appendices > | BendigoandAdelaideBank 9
Slide 30: Customer connected
For personal use only Customer connected POINTS OF PRESENCE Company-owned branch 172 Community Bank® branch 321 Delphi Bank 15 Alliance Bank PF Private Franchises 4 > | BendigoandAdelaideBank .
Slide 31: Ongoing investment in technology
Ongoing investment in technology on aTeiae: Bendigo mobile banking Up Maintain strong information security program Bendigo Express home loan New digital experience platform Focus on embedding new technology to meet * Creation of pre-submit quality assurance process t tati (Rural Bank) Retirement of
Slide 32: tictochomeloans.com
For personal use only tictochomeloans.com
Slide 33: Up - Super powered banking
Up - Super powered banking Australia’s first fully licenced and all-in-app mobile banking platform World class sign-up and on-boarding process (less than 3 min average digital it Industry-leading smart receipts and Backed by BEN’s banking systems, products and expertise Built and run in partnership
Slide 34: Bcause.com.au
For personal use only Bcause.com.au
Slide 35: Funding
Funding For personal use only ≤ 0.01% > 0.01% - ≤ 0.25% > 0.25% - ≤ 1.50% > 1.50% 2
Slide 36: Key capital ratios
For personal use only Key capital ratios
Slide 37: Stress testing
Stress testing stress testing team within Group Risk Stress testing is undertaken annually at the Group level (across all risk types) and quarterly at the credit portfolio level and losses in the residential mortgage portfolio Additional stresses were applied to certain cohorts within the residentia
Slide 38: Liquidity
For personal use only Liquidity
Slide 39: Residential lending
For personal use only Residential lending
Slide 40: Residential lending portfolio
Residential lending portfolio For personal use only • • •
Slide 41: Secure and low risk loan portfolios
Secure and low risk loan portfolios For personal use only ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Slide 42: Specific provisions
Specific provisions For personal use only Represented by
Slide 43: Represented by
For personal use only • • • • • AASB 9
Slide 44: AASB
For personal use only ▪ ▪ ▪ ▪ Great Southern
Slide 45: Great Southern
For personal use only Business
Slide 46: Business
For personal use only Agribusiness
Slide 47: The Community Bank model
The Community Bank® model ▪ For personal use only ▪ ▪ ▪ ▪
Slide 48: Alliance Bank
For personal use only • • • Alliance Bank®
Slide 49: Homesafe investment property portfolio (statutory earnings)
Homesafe investment property portfolio (statutory earnings) For personal use only
Slide 50: Homesafe accounting treatment – illustrative example
Homesafe accounting treatment – illustrative example For personal use only
Slide 51: Statutory earnings to cash earnings - reconciliation
Statutory earnings to cash earnings - reconciliation For personal use only
Slide 52: Analysts Media
Analysts Media Nicole Rooke Simon Fit: Head of Investor Relations Head of Public Pi. T +64 35485 6286 T +61 8 8300 6019 M +64 431 442 808 E nicole.rooke@bendigoadelaide.com.au E simon fitzgerald@bendigoadelaide.com.au For personal Use only
Slide 53: 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 no representation or warranty is made as to the accuracy, completeness or reliability of the information. It is t
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