Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — UBS Financial Services Conference 2010
21 slides from Bendigo & Adelaide Bank's conference presentation, Jun 24, 2010
Slide 1: UBS Financial Services Conference: The Way Ahead post GFC
For personal use only UBS Financial Services Conference The Way Ahead post GFC Richard Fennell – Chief Financial Officer June, 2010 0 0
Slide 2: Disclaimer
Disclaimer For personal use only 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’
Slide 3: Today
Today For personal use only 1. Growth 2. Funding 3. Efficiency 4. Summary 2 2
Slide 4: 1. Growth
For personal use only 1. Growth Strong fundamentals across our business
Slide 5: Growth – group fundamentals
Growth – group fundamentals ♦ The group enjoys high levels of customer, shareholder and community trust and advocacy For personal use only Our group and business unit brands are strongly differentiated Retail banking Third party banking Attribute Measure Customer advocacy World class Net Promoter Sc
Slide 6: Growth – group fundamentals: Net promoter score
Growth – group fundamentals Net promoter score ♦ BEN’s score of +33 is considered world-class and is materially higher than our competitors For personal use only Net Promoter Scores® for Australian Banks Source: 2009 Engaged MARKETING Pty Ltd 5 5
Slide 7: Growth – retail banking
For personal use only Growth – retail banking Retail banking ♦ Continued growth in retail network ♦ Strong pipeline for Community Bank® branches. Source: BEN internal data. Notes: 2001 includes FABS acquisition, 2007 includes ADB merger. Excludes Alliances & Private franchises. 6 6
Slide 8: Growth – retail banking: Retail network maturity
Growth – retail banking For personal use only Retail network maturity ♦ Still a relatively immature branch network ♦ Growth expected in both liabilities and assets ♦ Plan to grow by 20+ branches in the coming financial year ♦ Community Bank® model proven through the GFC ♦ Footings maturity achieved
Slide 9: Growth – retail banking: Branch numbers
For personal use only Growth – retail banking Branch numbers ♦ Branch numbers compare favourably with competitors ♦ Potential for further scale in NSW, WA and SA Note: % of new bank branch openings excludes other ADI’s. Source: APRA Points of Presence data as at June 2009. 8 8
Slide 10: Growth – third party banking
Growth – third party banking For personal use only Third party mortgages ♦ Genuine desire for funding alternative ♦ Portfolio growth for the first time since 2007 ♦ Commission structures re-aligned ♦ Growth aligned with securitisation capability ♦ Partner relationships preserved and functional 9 9
Slide 11: Growth – margin lending
Growth – margin lending For personal use only Margin lending ♦ Customer numbers remain stable ♦ Strong margins maintained ♦ Market share growth since Macquarie acquisition ♦ Macquarie acquisition fully integrated ♦ Prepaid campaign progressing well 10 10
Slide 12: 2. Funding
For personal use only 2. Funding Positioned to support asset growth
Slide 13: Funding: Retail deposits remain strong
Funding For personal use only Retail deposits remain ♦ Continue to roll more than 85% of Term Deposits at maturity strong ♦ Continued growth in Term Deposit portfolio ♦ Not a price leader – leveraging brand and customer satisfaction metrics 12 12
Slide 14: Funding: Funding mix and securitisation
Funding Funding mix (on balance sheet)* For personal use only Securitisation – ♦ Two successful issues in the past 7 months confidence returning – Torrens 2010-1 and Torrens 2009-3 to this funding option ♦ We will continue to leverage this market as opportunities arise at economic prices TORRENS TOR
Slide 15: 3. Efficiency
For personal use only 3. Efficiency Continued focus on sustainable business
Slide 16: Efficiency - costs
Efficiency - costs For personal use only Cost to income reverting ♦ Capacity has been retained in the network towards long-term ♦ Pay increase for certified staff effective January 2010 trends ♦ Merger cost synergies ($60-$65m) have been achieved ♦ Revenue has recovered, while costs have remained re
Slide 17: Efficiency - credit
Efficiency - credit For personal use only Arrears tracking ♦ Higher interest rates not leading to significant increase in arrears ♦ All arrears loans with payment arrangements are still included in arrears data 16 16
Slide 18: Efficiency: Improved jaws and ROE
Efficiency For personal use only Improved ‘jaws’ and ♦ ROE improvement expected at circa 1% per year ROE ♦ Cost synergies from Bendigo Bank and Adelaide Bank merger realised earlier than forecast ♦ New business and M&A activity to meet internal 15% ROE target ♦ Continued support for capital efficien
Slide 19: 4. Summary
For personal use only 4. Summary A genuine banking alternative
Slide 20: Summary
Summary For personal use only A focus on growth, ♦ We will remain a genuine alternative to the major banks funding and efficiency ♦ Return to growth focus ♦ Core businesses well-placed to take advantage of improved trading conditions ♦ Continued diligent approach to sustainable business ♦ Proven tra
Slide 21: Contact
Contact For personal use only Will Rayner Terry Fountas Head of Investor Relations and Corporate Affairs Senior Manager, Investor Relations Bendigo and Adelaide Bank Limited Bendigo and Adelaide Bank Limited Tel: +61 8 8220 7764 Tel: +61 8 8220 7730 Mob: +61 437 794 366 Mob: +61 437 650 913 Email: w
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