Bendigo & Adelaide Bank Ltd. · ASX:BEN

Bendigo & Adelaide Bank — Bendigo Bank — H1 2004 Earnings Presentation

39 slides from Bendigo & Adelaide Bank's earnings presentation, February 2004

  1. Slide 1: Interim profit announcement 2004

    Interim profit announcement 2004

  2. Slide 2: Presenters

    Presenters The financial result Craig Langford Chief Financial Officer Strategy and outlook Rob Hunt Managing Director

  3. Slide 3: The financial result

    The financial result Craig Langford Chief Financial Officer

  4. Slide 4: Building a sustainable performance

    Building a sustainable performance Profit increased by 36% to $34.6 million Earnings per share increased by 6.5 cents to 26.8 cents Interim dividend up 3.5 cents to 17.0 cents

  5. Slide 5: Performance summary

    Performance summary $Millions Dec-01 Dec-02 Dec-03 Net Profit after Income Tax 19.5 25.4 34.6 Return on Average Assets 0.54% 0.62% 0.71% Return on Average Equity 8.80% 9.70% 11.90% Earnings per Share - cents 16.8 20.3 26.8 Expense to Income Ratio 73.50% 73.20% 70.80% 1/2Year end Assets 7,521 8,316 1

  6. Slide 6: Operating profit after tax

    Operating profit after tax A$ Millions 40 30 20 10 DEC 01 JUN 02 DEC 02 JUN 03 DEC 03 Normalised

  7. Slide 7: Net interest margin

    Net interest margin 3.00 2.80 2.60 % 2.40 2.20 2.00 JUN 01 | DEC 04 JUN 02 DEC 02 JUN 03 | DEC 03 © Bendigo Bank

  8. Slide 8: Non-interest income - $73.3m

    Non-interest income - $73.3m (At 31 Dec 2003)

  9. Slide 9: Operating expenses - $139m

    Operating expenses - $139m (At 31 Dec 2003)

  10. Slide 10: Contributions – Community Bank, ERB, Wealth Management

    Contributions – Community Bank, ERB, Wealth Management

  11. Slide 11: Efficiency ratio: Operating expenses/income

    Efficiency ratio: Operating expenses/income

  12. Slide 12: Total assets

    Total assets A$ Millions 14,000 12,888 12,000 10,000 8,000 6,000 4,000 2,000 0) DEC 01 DEC 02 DEC 03 Managed © Bendigo Bank

  13. Slide 13: Lending approvals

    Lending approvals A$ Millions 4,000 3,000 2,000 1,000 )

  14. Slide 14: Retail deposits

    Retail deposits A$ Millions 10,000 8,000 6,000 4,000 2,000

  15. Slide 15: Funds under management

    Funds under management $Millions Dec-01 Dec-02 Dec-03 Sandhurst mortgage & cash funds 913.2 1,104.1 1,313.7 Sandhurst Industrial Share Fund 72.0 223.5 346.4 Bendigo Superannuation Plan 90.0 130.2 166.0 General Retirement Plan 51.5 50.2 54.6 Diversified funds 6.8 8.2 3.0 Premier Global Select Fund 4.

  16. Slide 16: Commercial loans

    Commercial loans (At 31 Dec 2003)

  17. Slide 17: Loan portfolio

    Loan portfolio By purpose By security

  18. Slide 18: Geographic spread

    Geographic spread Loans Deposits

  19. Slide 19: Core retail deposit base: Funding mix

    Core retail deposit base: Funding mix

  20. Slide 20: Return on equity

    Return on equity 14 12 10 % ON F&F OD OO DEC 01 DEC 02 DEC 03

  21. Slide 21: Earnings per share

    Earnings per share cents DEC 01 DEC 02 DEC 03

  22. Slide 22: Capital adequacy

    Capital adequacy DEC 01 DEC 02 DEC 03 © Bendigo Bank

  23. Slide 23: Non-accrual loans

    Non-accrual loans A$ Millions 40 39 30 25 20 15 10 Net Non accrual

  24. Slide 24: Provision for doubtful debts

    Provision for doubtful debts

  25. Slide 25: Asset quality: Impaired loans / total assets

    Asset quality: Impaired loans / total assets

  26. Slide 26: Strategy and outlook

    Strategy and outlook Rob Hunt Managing Director

  27. Slide 27: Consistent strategy - brand

    Consistent strategy - brand Align strategy with culture and skills Create a unique style and value proposition Grow community capacity and therefore our relevance Expand our market share and coverage This is building the capacity of our markets and their inclination to buy from us.

  28. Slide 28: Consistent strategy - growth

    Consistent strategy - growth Revenue growth strategy Expand distribution network and options Forge alliances to secure new markets/skills Broaden product range (eg. expand Wealth Management) Improve our skills & capabilities Demonstrate consistent above-system growth In the past four years we have d

  29. Slide 29: Consistent strategy - markets

    Consistent strategy - markets Focus on quality customer service Community Bank, alliances, joint ventures (c-commerce) Enhancing capacity of buyers Increasing the relevance of the bank in each market Growing a sustainable revenue base Securing future markets – 64 of 118 Community Bank branches are m

  30. Slide 30: Consistent strategy – balance sheet

    Consistent strategy – balance sheet Built a strong, clean balance sheet Most developments have been expensed Strong provisioning and credit performance Proven ability to raise capital Strong capacity to fund growth opportunities The Company has never been in better shape.

  31. Slide 31: Improving performance

    Improving performance Large increases in net profit for six consecutive reporting periods Return on equity Dec.’00 7.3% Dec.’03 11.9% Earnings per share Dec.’00 16.2 cents Dec.’03 26.8 cents 28th best Australian company for sustainable shareholder returns over five years (Bulletin, Dec. 2003).

  32. Slide 32: First-half highlights – financial

    First-half highlights – financial Improved profit performance by 36% Increased EPS by 32% and dividend by 26% Strong growth in retail deposits, loans outstanding and managed funds Excellent margin reflects brand strength Strong asset quality performance Reaffirms a strong and consistent upward trend

  33. Slide 33: First-half highlights - developments

    First-half highlights - developments Became card acquirer and expanded card base Opened 18 new branches Bendigo Managed Funds topped $100 mil. $2 billion in funds under management and advice Continued strong growth in Elders Rural Bank and all alliance initiatives Recent investments are making stron

  34. Slide 34: Looking ahead – investments

    Looking ahead – investments Continue investment in revenue generation: - Branches - Cards - Business developers - Wealth Management business Community enhancement initiatives - Community Bank and Community Telco - e-commerce - Lead On Strong demand for the Bendigo brand across Australia.

  35. Slide 35: Looking ahead – investments

    Looking ahead – investments 30 new Community Bank branches in 2004 Investment in new company owned branches e-banking enhancements continue Continued development of JVs and alliances Continued expansion of Wealth Management business Revenue growth continues to outstrip expenses.

  36. Slide 36: Looking ahead – markets

    Looking ahead – markets Economy remains strong Strengthening rural economies is an added plus Segments of the home loan market will slow, but we expect little adverse effect on Bendigo in second half Our dependence on residential home loans has reduced Community demand for Bendigo expected to remain

  37. Slide 37: Looking ahead – performance

    Looking ahead – performance Customer numbers will continue to grow strongly Above-system growth in balance sheet expected Newer branches will continue to fuel growth in volumes and revenues Anticipate continued improvement in key performance ratios We expect our full-year profit to increase by aroun

  38. Slide 38: Looking ahead – performance

    Looking ahead – performance Brand identity continues to drive strong demand Continued growth in national distribution network Revenues to grow as recent investments mature Strong growth in e-banking and Wealth Management revenues Continuing improvement in performance Balance sheet approach enhances

  39. Slide 39: Interim profit announcement 2004

    Interim profit announcement 2004

Bendigo Bank — H1 2004 Earnings Presentation on 6ix