Slide 1: FY19 Full Year Results Presentation
FY19 Full Year Results Presentation BNK BANKING CORPORATION LTD 30 August 2019
Slide 2: Disclaimer
Disclaimer FY19 FULL YEAR RESULTS 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,
Slide 3: Our Vision
Our Vision BNK WILL COMBINE FLEXIBILITY AND SCALE TO CREATE AUSTRALIA’S MOST COMMERCIALLY AGILE BANKING GROUP BNK is the bank where real people work together to leverage our strengths so that we can help more customers achieve their financial goals. We retain the flexibility to respond at speed to t
Slide 4: Our Values and Our People Make the Difference
Our Values and Our People Make the Difference Real people working together to leverage our strengths to help more customers achieve their financial goals Trust Unity Work Hard Protect the trust we build with our We are in this together, even Successful people have a customers and each other. It is w
Slide 5: FY19 Full Year Financial Highlights
FY19 Full Year Financial Highlights POST MERGER SCALE AND OPERATING LEVERAGE DRIVING PROFITABLE GROWTH BNK is pleased to report its maiden statutory result of NPAT $3.6m in FY19, an improvement of $4m on the prior year, driven by post merger scale, market share gains and accelerating loan book growt
Slide 6: Loan Book & Settlement Growth
Loan Book & Settlement Growth ACCELERATING HIGHER MARGIN BOOK GROWTH FY18 FY19 $ Var % Var Strong loan book and settlement growth rates across the business with rapidly increasing on balance sheet lending growth over the course of FY19. Loan Book BNK (Bank) 170,510,550 214,323,347 43,812,797 25.7% B
Slide 7: Summary Profit & Loss
Summary Profit & Loss EARNINGS MOMENTUM IN FY19 POSITIONS WELL FOR FY20 GROWTH GROUP ($m) FY2018 FY2019 $ Var % Var BNK (Bank) 5.1 5.1 0.0 0% Better Choice (Wholesale) - 6.8 6.8 100% Finsure (Aggregation) - 13.1 13.1 100% NPV - 6.0 6.0 100% Statutory NPAT of $3.6m, up $2.9m from the reported 1H19 re
Slide 8: Summary Balance Sheet
Summary Balance Sheet STRONG CAPITAL POSITION FOR FY20 GROWTH GROUP ($m) FY2018 FY2019 $ Var % Var Assets On balance sheet origination lead to loan growth of $43.8m representing a Cash & Equivalents 46.5 97.9 51.4 111% 26% uplift on the prior year. NPV Asset - 269.4 269.4 100% Loans & Advances 170.5
Slide 9: Aggregation $38b
Aggregation FY19 KEY HIGHLIGHTS $38b Aggregation Loan Book Increase of $6.3b from FY18 1,674 Loan Writers Finsure maintains a large and proportionately spread broker base across all Increase of 239 from FY18 States/Territories in Australia. $11m EBITDA Increase of $500k from FY18 WA & NT 66 Lo
Slide 10: FY19 Operational Highlights
FY19 Operational Highlights KEY HIGHLIGHTS BNK enjoys scale but is not limited by a bureaucratic culture and restrictive legacy systems, structures or practices Numerous awards recognising various business units Successful merger between Finsure and Goldfields Acquisition International Finance Award
Slide 11: Outlook and Strategy
Outlook and Strategy
Slide 12: BNK will become the Bank for Enterprising Australians
BNK will become the Bank for Enterprising Australians SERVICING A LARGE AND EASILY IDENTIFIED YET UNDERSERVICED MARKET Highly identifiable ENTREPRENEURS who run their own businesses FREELANCE C O N T R A C T O R S OF THE 2.3M ACTIVELY TRADING AUSTRALIAN BUSINESSES 93.1% 2.15m GOOD INCOMES AND ASSE
Slide 13: Optimising BNK Capabilities
Optimising BNK Capabilities Scale Solutions distribution – Capability BNK leverages a combination of mortgage models to optimise volume and Data smarts $ $ margin simultaneously BNK Banking Corporation Three models working together, creating something we believe is “greater than the sum of our part
Slide 14: Profitable Now & Positioned for Growth
Profitable Now & Positioned for Growth Enterprising Data smarts - Access to data smarts to enable products and services to be BNK tailored to the needs of our customers Neo banks BNK Unrestricted ADI licence – 38 year operating history with no legacy technology, Small Scaled experienced people with
Slide 15: Multi-Channel Sales Distribution Model
Multi-Channel Sales Distribution Model BRINGING IT ALL TOGETHER $$ $ $ Direct Channel BNK White Label Channel Wholesale Channel Broker Channel Manufacturer (BNK Bank) Manufacturer (BNK Bank) Manufacturer (BNK Bank) Manufacturing Margin Wholesale (Better Choice) Wholesale (Better Choice) Wholesale
Slide 16: Clear Path to Continued Growth
Clear Path to Continued Growth ON TRACK BNK BANKING CORPORATION LTD ON TRACK Full integration with SWIFT network in partnership with InstaReM to facilitate secure international money transfers ON TRACK Enhance open banking architecture via upgrade to Temenos T24 core banking platform and launch
Slide 17: Strong Outlook
Strong Outlook BNK 3 YEAR OUTLOOK Merging the BNK (banking) and Better Choice (wholesale) businesses and working with the Finsure (aggregation) business has enabled BNK to strengthen the group’s ability to accelerate growth targets in the Australian mortgage sector and expand existing banking servic
Slide 18: FY19 Recap and Outlook
FY19 Recap and Outlook SUCCESSFUL MERGER BETWEEN GOLDFIELDS, FINSURE AND BETTER CHOICE TO CREATE BNK BANKING CORPORATION BNK FY19 Performance characterised by post merger scale, market share gains and accelerating loan book growth Fast growing with majority of business revenue recurring Uniquely pos
Slide 19: Appendix
Appendix
Slide 20: Board Of Directors
Board Of Directors Peter Wallace CHAIRMAN & NON EXECUTIVE DIRECTOR Mr Wallace was appointed a director in August 2014. He has more than 45 years of experience from a range of appointments held within the banking and financial services industry. Mr Wallace was previously the Head of Corporate (Wester
Slide 21: Board Of Directors
Board Of Directors John Kolenda EXECUTIVE DIRECTOR Mr Kolenda was appointed a Director on 13 March 2018. Mr Kolenda is the Managing Director of Finsure Group, and has extensive experience in the mortgage broking and aggregation sector. Finsure was ranked sixth in BRW Magazine’s Fast 100 List in 2016
Slide 22: Our Executive Team
Our Executive Team Jussi Nunes GROUP CHIEF FINANCIAL OFFICER Jussi joined BNK Banking Corporation Ltd as Group Chief Financial Officer, in December 2018, to lead the financial management framework of the recently merged entity. He has 18 years of banking and financial management experience, which st
Slide 23: Our Executive Team
Our Executive Team Simon Bednar GM AGGREGATION An executive with 15 years experience covering a Sales, Business Consultancy, project management, IT operations, and executive recruitment, primarily focused within the Finance Sector. Simon has a Bachelor of Engineering and spent 8 years as Chief Opera
Slide 24: Key Profitability Indicators
Key Profitability Indicators GROUP PERFORMANCE METRICS Percentage of FY19 Key Performance Indicators Revenue Type Description Nature of Revenue FY19 KPI Performance Net Revenue* (%) (KPI’s) On-balance sheet On-balance sheet loans $214m as at Jun19 Banking & Wholesale Monthly net interest margin