Bendigo & Adelaide Bank Ltd. · ASX:BEN

Bendigo & Adelaide Bank — UBS Australian Financial Services Conference 2012

17 slides from Bendigo & Adelaide Bank's conference presentation, Jun 20, 2012

  1. Slide 1: Community Bank: a sustainable model for growth

    For personal use only Community Bank: a sustainable model for growth UBS Australian financial services conference Mike Hirst – Managing Director June 20, 2012 1

  2. Slide 2: 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 does not purport to be complete. It is not intended to be relied upon as advice to For personal use only investo

  3. Slide 3: Agenda

    For personal use only 1. Overview 2. Community Bank® - a vehicle for growth 3. Balance sheet strength - Funding - Credit Agenda 3

  4. Slide 4: How we think about the business

    How we think about the business For personal use only Foundations Strategy Performance • Customer • Business model • Long-term growth engagement • People • Low risk balance • Funding and liquidity • Technology sheet • External ratings • Stakeholder • Capital balance Overview 4

  5. Slide 5: How the Community Bank model works

    How the Community Bank® model works  The Community Bank® model is a reverse-enquiry franchise with the community owning the rights to operate For personal use only a Bendigo Bank branch. The first Community Bank® branch was established in 1998  Community Bank® branches provide communities with the

  6. Slide 6: Unique and powerful value proposition

    Unique and powerful value proposition For personal use only  Community capital is solely for initial working capital, staff and branch  Feasibility study and business on books before branch opens  Revenue sharing arrangement  Total profits back into the communities in excess of $75m In CY 2010

  7. Slide 7: Exceptional footings growth through the credit cycle

    Exceptional footings growth through the credit cycle For personal use only A liability-led strategy System growth in the 12 months to March 2012  Significantly outperforming system growth 20%  Relative immaturity supporting growth Loan growth Deposit growth 15% 13.7%  Funding from Community Bank®

  8. Slide 8: Community Bank footings growth

    Community Bank® footings growth Community Bank® loans Community Bank® deposits Community Bank® footings For personal use only 25 2008-2012 CAGR = 18% 22.4 20.5 20 16.2 2008-2012 CAGR = 19% 14.4 15 2008-2012 CAGR = 18% 12.4 A$bn 11.4 11.4 10.0 10 9.2 9.1 9.2 8.3 7.1 7.4 6.0 6.1 5.2 4.9 4.3 4.1 5 3.3

  9. Slide 9: Latent growth as network matures

    Latent growth as network matures Deposits per Community Bank® branches CAGR 1-10 years = 16.2% For personal use only $'000 59,890 61,602  BEN’s Community Bank® model 34,638 40,568 32,394 28,329 31,274 underpins its franchise value and 23,659 22,309 8,916 15,972 contributes to BEN’s strong deposit <

  10. Slide 10: A national brand and network

    A national brand and network For personal use only  BEN has 575 points of presence around Australia 5 9  Branch split is 45% metro vs 55% regional 114 100  The Australia Post distribution agreement is 52 65 expected to greatly enhance BEN’s distribution footprint, with 1,400 Post 43 62 Offices. R

  11. Slide 11: A true shared-value model

    A true shared-value model $80 Community Bank® community grants Millions For personal use only $70  Communities have proven to be great partners in banking, and together we have opened more than $60 280 branches in 12 years (more than 70 in the last $50 three years) $40  More than $75m in Community

  12. Slide 12: Customer satisfaction

    Customer satisfaction1 100% Benefits are felt across the group 90% 89.5% 80% 78.0% 77.9% 77.5% For personal use only 76.4%  BEN leads its regional and major 70% bank peers in brand awareness, 60% customer advocacy and customer 50% trust BEN NAB ANZ CBA WBC Business banking satisfaction2 100%  BEN’

  13. Slide 13: Funding advantages are significant

    Funding advantages are significant  For personal use only We remain self-sufficient - Deposit led strategy - No government guaranteed rollover risk - Opportunistic view of wholesale markets  Leverage core strengths - Customer engagement - Distribution and partnerships  Pricing reflects value prop

  14. Slide 14: Credit quality remains sound across all channels

    Credit quality remains sound across all channels Residential mortgages - 90+ day arrears* 1.5%  For personal use only Mortgage arrears remains low across the retail network  Community Bank® mortgage arrears 1.0% track slightly lower than company owned branches  Mortgage loss rates across the enti

  15. Slide 15: Provisioning reflects conservative low risk portfolio

     Provisioning reflects conservative low risk nature of portfolio, prudent underwriting standards and benign bad debt experience For personal use only Balance sheet strength – credit Source: Company disclosure, full year financials 15

  16. Slide 16: Questions

    For personal use only Questions 16

  17. Slide 17: Investor relations contacts

    For personal use only Will Rayner Terry Fountas Head of Capital and Investor Relations 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: will.rayner@bendigoa

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