Bendigo & Adelaide Bank Ltd. · ASX:BEN
Bendigo & Adelaide Bank — Investor Presentation (June 2013)
20 slides from Bendigo & Adelaide Bank's investor presentation, Jun 4, 2013
Slide 1: Rural Bank: Introduction and overview
For personal use only Rural Bank Introduction and overview June 2013
Slide 2: Agenda
Agenda Background For personal use only › Structure › Key business dimensions › Strategy Customer and markets › Agricultural outlook › Drivers of farm debt and lending growth › Customer considerations › Customer characteristics and aspirations Summary Page 2
Slide 3: Background and Value Proposition
Background and Value Proposition Rural Bank Ltd (RBL) is a 100% subsidiary Expert For personal use only of the Bendigo and Adelaide Bank Limited Knowledge Group (BEN). RBL is a registered bank established in 2000 Community Transparent Involvement Decision Making RBL today leverages capabilities
Slide 4: Background – Key Business Dimensions: Loans under management
Background – Key Business Dimensions Loans under management For personal use only Total Loans Under Management Millions $4,000 TAS 3,650 3,679 3,667 3,599 WA Oth 3,565 27% 2% 0% 3,249 NSW 21% $3,000 2,850 2,351 SA/NT $2,000 1,881 17% VIC 12% QLD 21% $1,000 Beef $0 24% Dairy F04 F05 F06 F07 F08 F09 F
Slide 5: Background – Key Business Dimensions: Funding composition
Background – Key Business Dimensions Funding composition For personal use only $4,000 Millions NSW 203 78 70 128 34% 164 255 $3,000 205 VIC TAS 19% 60 3% - $2,000 3,526 3,675 3,549 3,339 3,187 2,976 WA 2,687 2,262 12% $1,000 1,846 QLD 13% SA 19% $0 F04 F05 F06 F07 F08 F09 F10 F11 F12 0-1mth • Retail
Slide 6: Background: Multi-distribution strategy
Background: Multi-distribution strategy Customer Marketing and Operations and Channel Management Product Development Fulfilment Capabilities For personal use only • District Banking Managers • District Banking Officers • Customer Service Officers • Business Services Unit • Relationship Managers • On
Slide 7: Agenda
Agenda Background For personal use only › Structure › Key business dimensions › Strategy Customer and markets › Agricultural outlook › Drivers of farm debt and lending growth › Customer considerations › Customer characteristics and aspirations Summary Page 7
Slide 8: The Agricultural Sector long term prospects remain sound
The Agricultural Sector long term prospects remain sound › Sector fundamentals remain sound, with increasing global For personal use only Agricultural Sector population and reducing areas of arable land. This will Outlook underscore continued growth in commodity prices over the long term › Commodity
Slide 9: With customer expectations increasing
With customer expectations increasing For personal use only Customer 〉 Total farm numbers have decreased by ~14,000 (20%) since FY2000 driven in part Considerations by a continuing trend of farm consolidation at 1% per annum, which is changing the profile of customers over time in the middle to uppe
Slide 10: Rural Bank continues to target customers in the middle to upper market
Rural Bank continues to target customers in the middle to upper market What are our key 〉 Predominantly family businesses to mid sized corporate For personal use only customer (borrowing to $20m on balance sheet) characteristics? 〉 Generally $0.5m to $5.0m in total farm revenues (median target marke
Slide 11: Agenda
Agenda Background For personal use only › Structure › Key business dimensions › Strategy Customer and markets › Agricultural outlook › Drivers of farm debt and lending growth › Customer considerations › Customer characteristics and aspirations Summary Page 11
Slide 12: Questions
For personal use only Questions Page 12
Slide 13: HY13 results update and analysis
Attachment: HY13 results update and analysis For the half year ended 31 December 2012 Summary A$m unless otherwise indicated HY13 HY12 Net profit after tax • NIM was maintained in line with the pcp, For personal use only Income with liability repricing offsetting the broadly in line with prior Net i
Slide 14: HY13 results update and analysis
Attachment: HY13 results update and analysis For personal use only Gross NPL have increased significantly since 2010, reflecting the QLD property price declines , impact of natural disasters and livestock export trade issues Total write-offs have increased over the past two years however are now tre
Slide 15: Asset portfolio – geography and channel trends
Attachment: Asset portfolio – geography and channel trends Portfolio Balances by State 25% For personal use only % of Portfolio 20% 15% 10% 5% 0% NSW Vic Qld SA WA TAS BEN RB Rural Ray White Dec-09 Dec-10 Dec-11 Dec-12 Portfolio Balances by Distribution Channel 94.0% 10.0% 9.0% 92.0% % of Portfolio
Slide 16: Asset quality update
Attachment: Asset quality update The charts below set out RBL’s overall asset quality For personal use only Page 16
Slide 17: Credit expense trends
Attachment: Credit expense trends For personal use only Specific Provision Expense 18 Millions Rural Bank’s specific 16 provision expense has been 14 primarily due to Queensland exposures 12 AMIS 10 WA SA Queensland clients currently 8 1 make up 72% of the specific Vic/Tas 6 NSW provision held by Ru
Slide 18: HY13 provisioning summary
Attachment: HY13 provisioning summary For personal use only Non performing loan balances were $203.3m as at 30th June 2012 down $1.8m from 31st December 2011 as a result of the half yearly provisions review As at the 31 December 2012, total provisions including unearned income were $82.2m and repres
Slide 19: Industry analysis
Attachment: Industry analysis For personal use only Portfolio weighted towards sheep/cereal, sheep/beef and beef Agricultural sector most affected over the past 12 months is beef which is due to the concentration of this sector in QLD. Page 19
Slide 20: Commodity prices – domestic producer price index
Attachment: Commodity prices – domestic producer price index For personal use only Resilience in sector performance despite strength in $A Cattle, lamb and wool prices at near record highs Wheat prices have increased considerably in the last couple of years Healthy profits for some farmers has resul
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