2002 > CONCISE ANNUAL REPORT 2002 > Gaining Momentum > Gaining
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Cover F/A 26/9/02 11:54 AM Page 1 BENDIGO BANK CONCISE ANNUAL REPORT BENDIGO BANK CONCISE ANNUAL 2001 > 2002 > CONCISE ANNUAL REPORT 2002 > Gaining momentum > Gaining momentum Investing in a sustainable future Cover F/A 25/9/02 10:33 AM Page 2 Bendigo - banking in motion. 2002 TABLE OF CONTENTS Bendigo Bank Limited Financial Calendar 2 ABN 11 068 049 178 Highlights 3 Registered Head Office Level 2, Fountain Court Report by Chairman & Managing Director 4 Bendigo, Victoria 3550 Financial Result 8 Telephone: (03) 5433 9339 Result at a glance 9 Facsimile: (03) 5433 9690 Email: [email protected] Retail Bank 10 Agencies 11 In this report, the expressions Business Banking 11 “the Bank”, “the Bendigo”, “Bendigo” Community Bank 12 and “the Company” refer to Bendigo Bank e-banking 12 Limited; the expression “the Group” refers New branches 13 to Bendigo Bank Limited and its New products 13 controlled entities. Phone Bank 13 Queensland 13 Customer/Shareholder inquiries Subsidiaries and Joint Ventures 14 Customer Help Centre Community Sector Banking 14 1300 361 911 (local call) Elders Rural Bank 14 8.30am - 5.00pm Mondays to Fridays National Mortgage Market Corporation 14 Sunstate Lenders Mortgage Insurance 14 Bendigo Bank OnCall Tasmanian Banking Services 14 1300 366 666 (local call) Wealth Management 15 8.00am - 8.00pm weekdays, 9.00am - 4.00pm Saturdays, Community Development 16 Community Bank 16 10.00am - 4.00pm Sundays Community Telco 17 24-hour Phone Banking Environment 17 1300 366 666 (local call) Lead On 17 Regional development 17 24-hour e-banking Sponsorships 17 www.bendigobank.com.au Shareholder Information 18 Website: www.bendigobank.com.au Corporate Governance 20 Securities Registry: 1800 646 042 Concise Financial Report 25 Subsidiary companies Cover Picture: Bendigo Bank is gaining momentum through Bendigo Investment Services Limited a new generation of business ideas and the enthusiasm of National Mortgage Market staff members like Dallas Hall, Simone Baker and Jy Pertzel. Corporation Pty Ltd Sandhurst Trustees Limited Sunstate Lenders Mortgage Insurance Pty Ltd Victorian Securities Corporation Limited Worley Securities Pty Ltd AR Text F/A 25/9/02 10:06 AM Page 1 7.27am > We’re moving with our customers. An expanding ATM network increases access and convenience. Bendigo is banking every moment. And with every moment, we are gaining momentum. With increasing impetus, the strength of our investments drives us towards a sustainable future. The Bendigo Bank Concise Annual Report 2002 chronicles the many significant ‘moments’ that have contributed to the life of the Bank this year. Bendigo Bank > Gaining Momentum 1 AR Text F/A 25/9/02 10:06 AM Page 2 8.38am > Early morning and already things are in full swing at Jimmy Possum Country Furniture, where owner Alan Spalding and business banker Dominic Brennan discuss the progress of this thriving community-based business. FINANCIAL CALENDAR 2002 – 2003 2002 7 October Ex-dividend date 11 October Final dividends record date 28 October Annual General Meeting, 11 am 31 October Distribution of final dividend 29 November Interest paid on 8% Capital Notes Opportunity to convert Capital Notes into Ordinary Shares 31 December Half year end Proposed Dates 2003 February Announcement of interim results and interim dividend 7 April Ex-dividend date 11 April Interim dividend record date 30 April Distribution of interim dividend 30 May Interest paid on 8% Capital Notes Opportunity to convert Capital Notes into Ordinary Shares August Announcement of final results and final dividend 31 October Distribution of final dividend 2 CONCISE ANNUAL REPORT 2002 AR Text F/A 25/9/02 10:06 AM Page 3 Bendigo is building business. 2002 HIGHLIGHTS Financial Service Corporate > Profit after tax up by 47 per cent > Five new company-owned > Standard & Poor’s long-term credit to $48.8 million branches opened rating boosted from BBB- to BBB and short-term from A-3 to A-2 > Earnings per share increased by > 29 new Community Bank 31 per cent, to 41.1 cents branches opened > Wealth Management division established > Lending approvals $3.64 billion, > Two more Tasmanian Banking up by 46 per cent Services branches opened > Retail bank split into business and consumer divisions > Total Group deposits grew by > 34 new ATMs installed 12 per cent to $7 billion > First Australian Building Society > Online share trading and financial (Retail deposits comprised (FABS) fully integrated services portal launched 91 per cent of total deposits) > Bendigo Managed Funds launched > Total Group-managed assets increased by $1.42 billion, or 16 per cent, to total $10.37 billion Profit after tax ($ mil.) Total bank deposits ($ mil.) > Net impaired loans reduced by 40 per cent, to $11.9 million, just 0.19 per cent of gross loan 48.784 6,988 balances 6,229 > Shareholder dividend was 29 cents per share, up from 33.278 26 cents (excluding 2001’s 4,394 15 cent special dividend) 3,775 21.312 19.702 1999 2000 2001 2002 1999 2000 2001 2002 Bendigo Bank > Gaining Momentum 3 AR Text F/A 25/9/02 10:06 AM Page 4 Bendigo Bank is gaining leverage from the integrity of its investment strategy. 2002 REPORT BY CHAIRMAN AND MANAGING DIRECTOR Bendigo Bank’s strategy to generate Our profit increase was strong in This investment program continues to sustainable value for all stakeholders comparison with our industry. Why build capacity not only to fully service is gaining momentum. were we able to achieve this “above our current business but to system” growth? and why are we accommodate new businesses which We have clear goals and a tightly confident that we will again this year will produce economies of scale. focused strategy to achieve them. record double-digit growth in our Our distribution channels are rapidly We continue to invest in building business and profit? expanding across Australia. Our businesses which will generate future specialised product and service The answer lies in the consistency of revenue streams. We have committed options are broader than ever and are both our strategy and the investment capital to enter Australia’s largest backed by skilled people and clever program we have conducted since banking market, Sydney, through a technology to help our customers converting to a bank in 1995. We network of branches strategically achieve their financial aims. We are said then our intention was to invest placed to support growth in rapidly building capacity to enhance in people, skills, systems and Community Bank and online banking. the prospects of those communities structures in order to build a unique Development of our wealth we serve. And we are generating bank which was prepared to look management division and advisory strong earnings momentum in line beyond financial services to other network continues. Our strategic with the growth in our business. ways of improving the prospects of its markets division, which has been customers and communities. By responsible for initiatives such as Bendigo Bank’s after-tax profit doing so, we would establish a brand Community Telco and Guild Banking, for 2001/2002 was $48.8 million, a and positioning which would create a continues to work on new business 47 per cent increase on the previous logical franchise built on our prospects. These include the newly- year. Earnings per share increased relevance to our customer base and launched Community Sector Banking, by 9.6 cents, to 41.1 cents, a rise supported by our commitment to a joint venture company based on of 31 per cent. The dividend to quality service. That meant identifying our successful Community Bank shareholders was 29 cents per share, markets in which we believed we model. This is in effect a virtual up from 26 cents (excluding the could excel and then finding the best Community Banking structure which 15 cent special dividend paid last ways to present the Bendigo will build and support purpose-built financial year). proposition to those communities. product for Australia’s not-for-profit We wish to improve performance in a sector. We committed large amounts of balanced way, rewarding shareholders capital to technology such as our Investments like these take time to for their investment and support while Windows-based branch delivery build momentum and generate healthy continuing to provide good customer system, our online loans processing revenues. However, their potential to service and to contribute to the system and our Internet and Phone further add to earnings becomes prospects of our communities. In banking services. Since 1995 we obvious when it is considered that at answer to a shareholder question have merged six new companies into 30 June 2002 half our branches had at one of last year’s information our Group, doubling our company carried the Bendigo brand for less evenings, we said we aimed to owned branches, to 140. Community than two years, Tasmanian Banking increase the key return on equity Bank was devised, trialled and Services was just two-years-old, (ROE) measure by one per cent per implemented, with 72 branches Elders Rural Bank three and annum for each of the next few opened in just four years. Elders Community Bank four. Significant years. This was achieved for Rural Bank and Tasmanian Banking revenue increases, and therefore 2001/2002, when ROE grew from Services were new ventures with our return on our investments, can be 9.4 per cent to 10.6 per cent, and alliance partners. Business banking expected as those businesses is again our broad financial objective and wealth management divisions generate momentum and this year. were created and scores of new approach maturity. products developed and launched. Existing staff were upskilled and new staff and skills recruited, with staff numbers growing from 701 (FTE) at conversion to 1754 today.