For personal use only BNK Banking Corporation Limited Investor Presentation April 2019
Disclaimer For personal use only 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, assumptions, contingencies and other f actors many of which are outside the control of BNK Banking Corporation Limited (“BNK”), which may cause the results or actual performance to be materially different from the future res ults or performance expressed or implied by such forward- looking statements. Such forward-looking statements speak only as of the date of presentation. No presentation or warranty is or will be made by any legal or natural persons in relation to the accuracy or completeness of all or part of this document, or any constituent or associated presentation, information or material (collectively, the Information), or the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in, or implied by, the information or any part of it. The information includes information derived from third party sources that has not been independently verified. To the full extent permitted by law, BNK disclaims any obligation or undertaking to release any updates or revisions to the information to reflect any change in expectations or assumptions. Nothing contained in the information constitutes investment, legal, tax or other advice. You should make your own assessment and take independent professional advice in relation to the information and any action on the basis of the information. Financial data: All dollar values are in Australian dollars (A$) unless otherwise stated. Non statutory financial disclosures are not audited. Disclaimer: To the maximum extent permitted by law, BNK, its officers, employees, agents and advisers disclaim all liability that may otherwise arise as a result of the use of, or reliance on, information in this document for any purpose. Investor Presentation 2 April 2019
Executive Summary Unique business For personal use only combination • Diversified financial services company following merger with Finsure in Sept 2018, recently renamed BNK Banking Corporation Limited • Two complementary divisions underpinned by established intellectual property • Banking: BNK Bank and Better Choice • Mortgage broking aggregation: Finsure and other owned brands Technology-enabled • Experienced management and broad executive capability across lending, customer service and product and data-driven manufacturing • Unique value proposition in that BNK offers a mortgage marketplace. If we can’t offer you the best rate for your loan we will find a provider that can • Technology-enabled model provides platform to expand product portfolio informed by industry leading data and insights • Agility to respond quickly to changing market environment and build scale as a challenger bank Speed & agility • Near-term investment to drive growth, with a clear focus on improving capital efficiency and profitability over time Investor Presentation 3 April 2019
Proud 37 year operating history For personal use only Finsure Business established as Finsure acquires Pioneer Goldfields Money acquires Goldfields Credit Union Mortgage Services merges with LoanKit Finsure 2015 2019 2012 2018 MAY JAN MAR 2018 1982 2013 2016 SEPT OCT Goldfields Credit Union Finsure acquires Future Goldfields Money Finsure acquires demutualises and lists on Financial & Iden Loan renamed as BNK Banking NationalCorp Home ASX as Goldfields Money Services Corporation Loans Limited Investor Presentation 4 April 2019
Key Financial and Operational Highlights – 1H19 For personal use only $13.7m $1.6m 24% 22% 91% KEY OPERATIONAL METRICS TRANSACTION ACCOUNT PRO FORMA PRO FORMA HQLA (LIQUIDITY) COST TO INCOME DEPOSIT MIX NET REVENUE UNDERLYING NPAT RATIO % RATIO (C:I%) Increased by +33% in 1H19 Sound liquidity position Investing in Growth 1,581 $6.8b $338m $35.5b $2.5b KEY GROWTH AGGREGATION & WHOLESALE AGGREGATION WHOLESALE AGGREGATION MANAGED METRICS LOAN WRITERS SETTLEMENTS SETTLEMENTS LOAN BOOK LOAN BALANCE Growth of +11% PCP Growth of +166% PCP Growth of +53% PCP Growth of +25% PCP Growth of +15% PCP 2.00% 18.7% 14bps $175m $2.3b KEY FINANCIAL STRENGTH NET INTEREST MARGIN CAPITAL ADEQUACY RATIO CREDIT LOSS ON-BALANCE SHEET OFF-BALANCE SHEET (NIM%) (CAR%) PROVISION RATE LOANS LOANS METRICS Investor Presentation 5 April 2019
Merged Infrastructure For personal use only Banking Mortgage Aggregation ▪ ~$175m on balance sheet Loan Book ▪ ~$36bn ▪ ~$2.3bn off balance sheet (as at 31 Dec 18) ▪ ▪ Deposit accounts, personal loans, mortgages 1,581 Loan writers (as at 31 Dec 18) ▪ ▪ Direct and wholesale Operate under range of fee and service models Summary ▪ ▪ $250k deposits covered by Aust Gov’t guarantee Considerable software development capability Information ▪ ▪ Launching new digital banking platform Proprietary lending platform Loankit (now Infynity) ▪ ▪ Access to 6,000+ external brokers Strong lead generation and marketing support Technology Owned Brands Intermediaries Scalable Digital Wholesale Lending National Distribution APRA Regulated bank Banking Platform Platform Network Investor Presentation 6 April 2019
Merger creates a unique mortgage marketplace For personal use only Strategic OPERATIONAL GROWTH CUSTOMERS Imperative FOUNDATIONS DRIVERS • • Agile: can respond quickly to Develop easy to use and Increase distribution VERTICALLY INTEGRATED GROUP evolving customer needs understand products • capacity and Grow supported broker network • • Wide distribution of competitive Maintain security and trust of capability products traditional bank • • Manufacture competitive Increase most profitable on- • Service customer needs across products from data insights balance sheet lending Broaden revenue more comprehensive range of streams and products • • Grow customer base through Generate more capital from profit financial services broker network growth • • Investment in customer journey Speed of delivery (STP) with no Expand technological • Enhance operational efficiency legacy systems • Provides low-cost operating capability through building scale • model Deliver positive “jaws” over time Investor Presentation 7 April 2019
Banking Business On Balance Sheet Loans ($m) Off Balance Sheet Loans ($b) 2.3 175 2.2 171 For personal use only 166 157 • Goldfields Money Limited re-named as BNK Banking Corporation Limited (February 136 2019) 1.5 1.5 1.5 • Provides simple and easy to understand deposit accounts, personal loans and mortgages – based on values of simplicity, honesty and transparency • Operating Brands: • Goldfields Money (WA branches) 1H17 2H17 1H18 2H18 1H19 1H17 2H17 1H18 2H18 1H19 • BNK Bank (digital, national) launched in 2019 • Better Choice Home Loans (wholesale, national) Net Interest Margin % • Considerable capability across credit lines, underwriting, servicing, fulfilment and 2.00% 1.98% 1.86% product manufacturing 1.83% 1.71% • Delivers broad range of banking products both direct and via third party intermediaries through API-enabled technology platform 1H17 2H17 1H18 2H18 1H19 • Strong track record and capability in compliance, risk management and customer service Credit Loss Provision Rate (bps) • Aim to build scale by growing product range and capitalising on market opportunities 21.1 14.1 13.7 13.3 12.8 • Unique value proposition in that BNK offers a mortgage marketplace. If we can’t offer you the best rate for your loan we will find a provider that can Investor Presentation April 2019 1H17 2H17 1H18 2H18 1H19 8
Aggregation Business For personal use only Total Loan Writers Total Loan Settlements ($b) • One of the strongest distribution networks in Australia, accounting for ~1 in 8 1,581 12 of all new loans written in the mortgage broking market 1,435 1,202 10 10 9 • 990 Provides complete solution to loan writers to maximise sales productivity 7 under flexible fee and service models 742 631 3 • Proprietary lending platform (LoanKit) enables loan writers to provide market- leading and low cost service, including lead generation and marketing collateral FY14 FY15 FY16 FY17 FY18 1H19 FY14 FY15 FY16 FY17 FY18 1H19 • Mortgage intelligence generates valuable insights for developing competitive lending products Total Loan Book (in $b) • Lending portfolio growth diversifies revenues through commission income and recurring transactional fees (now approx. half of group revenue) 35.5 32 • Aim to grow mortgage broker network through leading aggregation and 25 mortgage management offering 19 • A complete mortgage marketplace 14 7 FY14 FY15 FY16 FY17 FY18 1H19 Investor Presentation 9 April 2019
Recommend
More recommend
