Bnk Banking Corporation Limited · ASX:BBC
Bnk Banking — Shareholder Meeting (November 2020)
21 slides from Bnk Banking's shareholder meeting presentation, Nov 26, 2020
Slide 1: Access to AGM and Presentation
BNK Banking Corporation Limited Level 14, 191 St Georges Terrace Perth WA 6000 ASX Release, 26 November 2020 ACCESS TO AGM AND PRESENTATION BNK Banking Corporation Limited (ASX:BBC) (the Company) will today conduct its 2020 Annual General Meeting (AGM) virtually. Shareholders will have received indi
Slide 2: Who is BNK Banking Corporation Limited?
BNK Banking Corporation Limited Level 14, 191 St Georges Terrace Perth WA 6000 Who is BNK Banking Corporation Limited? BNK Banking Corporation Limited (BNK) is a diversified financial services company with two key operating divisions in banking and mortgage broking aggregation: Banking The company h
Slide 3: BNK Banking Corporation AGM Presentation
BNK Banking Corporation AGM Presentation November 2020
Slide 4: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to the financial condition, results of operations, business plans and objectives of management. All such forward‐looking statements involve known and unknown risks, significant uncertainties, assumptions, contingen
Slide 5: Our Business
Our Business Combining mortgage distribution businesses with a digital bank BNK Banking Corporation • BNK, trading under the Goldfields Money brand, was established in 1982. The Company was listed Who are we on the ASX 2012 and subsequently merged with the Finsure Group in Sept 2018 to form BNK Bank
Slide 6: Growth across the group in FY20
Growth across the group in FY20 Double digit growth in key areas Group Loan Balances $48.1b Total Group Settlements ($b) BNK Bank Loan Book ($m) BNK Bank Deposits Growth ($m) Up 18% YoY Up 21% Up 32% Up 21% $16.1 $346 48.1 $284 $13.3 $287 $214 % 40.6 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 4
Slide 7: Stable and Sound Foundations
Stable and Sound Foundations Higher % of low-cost deposit Prudent Loan-Loss Navigation of COVID-19 accounts improving NIM Provision Rate crisis 35% 0.26% 20% 0.12% 0.12% Excl. COVID-19 overlay FY19 FY20 FY19 FY20 Transaction Account mix Material progress on off-balance sheet Tier 2 Hybrid Well Capit
Slide 8: Group Outlook
Group Outlook POSITIONED FOR GROWTH • Transform BNK into a digital bank and better utilise unrestricted ADI license and balance sheet • Unlock revenue from distribution network • Continue to grow mortgage aggregation business • Leverage group capabilities and synergies • Highly capable and experienc
Slide 9: Appendix
Appendix
Slide 10: Finsure – a top broker aggregator
Finsure – a top 3 broker aggregator B2B Platform for mortgage brokers • Top 5 aggregator in Australia with 1,816 brokers (30/9/20) • $15.6b loan settlements in FY20 up 23% YoY • $4.6B loan settlements in Q1 ‘21, up 33% YoY • Total loan book in excess of $47.5b up 19% YoY • Panel of 65+ lenders (Resi
Slide 11: Better Choice – a leading non bank lender
Better Choice – a leading non bank lender Non-Bank Lender • Prime and specialised lending • Distribution via approx. 6,000 accredited brokers • $447m loans settled in FY20 • Total loan book $2.3b Shifting to a non-bank lender • Strategic shift from traditional ‘off balance’ sheet mortgage manager to
Slide 12: BNK Bank – an emerging digital bank
BNK Bank – an emerging digital bank Positioning for growth as a digital bank • Digital transformation efforts continue across people, process and systems to underpin digital bank game plan • Closed 2 remaining branches in FY20 and launched Bank@Post • Capital adequacy >21% • Australian Government Gu
Slide 13: Revenue Growth
Revenue Trend ($m) $40.0 Revenue Growth $35.5m $32.8m • Gross Revenue of $312.7m up 51.9% YoY and 37.3% on $35.0 $30.2m a pro forma basis. Gross Revenue (ex NPV) of $196.9m up 42% YoY and 22.5% on a pro forma basis. $30.0 • Net revenue of $35.5m, up by $5.3m (+17%), or up by $2.7m (+8%) on a pro-for
Slide 14: Profit & Loss Statement
Group ($m) Aggregation Wholesale Bank FY2020 1 FY20191 FY2019PF 2 $ Var. % Var. Gross Revenue Commission Income/(Exp.) 290.5 187.0 103.5 55% Profit & Loss Statement Interest Income/(Exp.) Fees & Other Income 10.6 11.5 8.8 9.4 1.9 2.2 21% 23% Total Gross Revenue 312.7 205.2 231.6 107.5 52% • Operatin
Slide 15: Balance Sheet
Group ($m) FY2020 FY2019 $ Var. % Var. Assets Cash & Equivalents 89.7 97.9 (8.2) (8.4%) NPV Asset 387.2 269.4 117.8 43.7% Loans & Advances 283.6 214.3 69.3 32.3% Balance Sheet Other Assets Total Assets 78.8 839.3 64.5 646.1 14.3 193.2 22.2% 29.9% Liabilities • Strong portfolio growth in Finsure resu
Slide 16: Strong Lending Growth
Strong Lending Growth Record Finsure settlements and BNK on balance sheet settlements despite challenging conditions Aggregation Settlements ($b) Wholesale Settlements ($m) Bank (On-B/S) Settlements ($m) Total Group Settlements ($b) $129.1 $16.1 $15.6 $578.4 $13.3 $12.7 $12.5 $12.0 $448.3 $385.9 $74
Slide 17: Strong Asset Growth
Strong Asset Growth Delivering double digit portfolio growth and associated recurring revenue growth Aggregation Loan Book ($b) Wholesale Loan Book ($b) Bank Loan Book ($b) Total Group Loan Book ($b) 45.5 48.1 2.34 2.3 0.28 2.24 38.10 40.60 31.80 0.21 34.20 0.17 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY
Slide 18: Strong risk management & resilience through COVID-19
Strong risk management & resilience through COVID-19 • BNK has a strong track record of risk management with $0 in write- offs for FY20 and low historical losses with only $139k credit losses for the last 14 years. On Balance Sheet Portfolio Arrears • Credit quality has been maintained while growing
Slide 19: Improved diversification and scale
Improved diversification and scale FY19 On Balance Sheet • High quality book of residential loans (93%) and SME loans (7%) with low arrears Loans ACT 0% NSW • Loan book growth over FY20 has greatly improved diversification and scale of 17% portfolio NT 0% WA 67% QLD 8%SA # Actual Balance Average Wei
Slide 20: Industry recognition
Industry recognition Confirming our place as market leaders Each business unit in our group has received recognition for excelling in their particular channels 2020 Australian Lending Awards 2019 Acquisition International Finance Best Aggregator (Finsure) Awards Best Non-Bank (Better Choice) Best Re
Slide 21: Experienced Board and Management Team
Experienced Board and Management Team Board Of Directors Jon Sutton Don Koch Jon Denovan Peter Hall John Kolenda Chairman of the Board Vice Chairman NED NED Executive Director Executive Team Brett Morgan Allan Savins Simon Bednar Andrew Kitchen Amber Smith John Kolenda BNK/BC CEO GM – Banking GM Agg