Bendigoand AdelaideBank Milestones fullannualreport08 Contents 1 Financial Calendar Bendigo and Adelaide Bank Limited 2008/2009 ABN 11 068 049 178 2 Report by Chairman Registered Head Office and Managing Director The Bendigo Centre PO Box 480 4 Results at a Glance Bendigo VIC Australia 3552 5 Bendigo and Telephone: 03 5485 6444 Adelaide Limited Facsimile: 03 5485 7668 > Our New Bank Email: [email protected] 6 Our Milestones In this report, the expression “the Bank”, “the Company” or 7 Our Community “the Group” refers to Bendigo and Adelaide Bank Limited and its controlled entities. 9 Our Retail Business Customer/Shareholder Inquiries 10 Our Wholesale Customer Help Centre Businesses (Head Office inquiries) 1300 361 911 (local call) 11 Specialised Products Mondays to Fridays 12 Our Wealth 8.30am – 6.30pm Australian Eastern Standard Time/ Businesses Australian Eastern Daylight Time (AEST/AEDT) 13 Our Future Bendigo OnCall 14 Our Technology (Bendigo Bank customer inquiries) 1300 366 666 (local call) 14 Our Partners 8.00am – 8.00pm weekdays 15 Our Staff 9.00am – 4.00pm Saturdays 10.00am – 4.00pm Sundays 16 Executive Profiles (AEST/AEDT) 18 Shareholder Adelaide Bank customers Information 13 22 20 (within SA) or 1300 65 22 20 (outside SA) 19 Financials 8.00am – 8.00pm weekdays 9.00am – 6.00pm Saturdays 10.00am – 6.00pm Sundays Australian Central Standard Time/ Australian Central Daylight Time (ACST/ACDT) 24-hour Phone Bank Bendigo Bank customers -1300 366 666 (local call) Adelaide Bank customers - 08 8300 7000 or 1300 300 893 (outside metropolitan SA) 24-hour e-banking www.bendigobank.com.au www.adelaidebank.com.au Website www.bendigobank.com.au www.adelaidebank.com.au Securities Registry: 1800 646 042 Financial Calendar 15.6% Cash earnings 2008 Gross loans and other recievables 27 August Ex-dividend date 42,853 2 September Final dividend record date 08 40,393 15 September Bendigo Preference Share dividend 2,460 30 September Distribution of final dividend 16,154 10 October Bendigo Step Up Preference Share dividend 07 13,844 2,310 27 October Annual General Meeting 15,998 3 November Bendigo Reset Preference Share dividend 06 14,057 15 December Bendigo Preference Share dividend 1,941 Total On balance sheet Managed Proposed 2009 12 January Bendigo Step Up Preference Share dividend Retail deposits and funds under management ($mil) 16 February Interim results & interim dividend announcement 30,291 08 23,641 26 February Ex-dividend date 6,650 4 March Interim dividend record date 15,498 16 March Bendigo Preference Share dividend 07 12,104 3,394 31 March Distribution of interim dividend 14,314 10 April Bendigo Step Up Preference Share dividend 06 11,347 1 May Bendigo Reset Preference Share dividend 2,967 15 June Bendigo Preference Share dividend 10 July Bendigo Step Up Preference Share dividend Total On balance sheet Managed funds 10 August Final results & final dividend announcement 27 August Ex-dividend date Earnings per share (EPS - cents) 2 September Final dividend date 15 September Bendigo Preference Share dividend 74.8 08 30 September Distribution of final dividend 93.7 12 October Bendigo Step Up Preference Share dividend 81.9 07 27 October Annual General Meeting 82.9 2 November Bendigo Reset Preference Share dividend 81.5 06 15 December Bendigo Preference Share dividend 73.2 EPS Cash EPS Profit after tax ($mil) Dividends (cents per share) 08 170.5 08 65.0 07 121.8 07 58.0 06 116.7 06 52.0 Full Financial Report 2008 1 Report by the HeadingChairman here and Managing Director The past financial year We expect to grow shareholder revenue growth and profitability The challenges we face are has been a difficult year value again this year, even if in line with the market guidance considerable and we must there is no improvement in we provided prior to the market not be complacent about for the world’s banks but the difficult market conditions dislocation which, as stated, the task confronting us. at Bendigo and Adelaide facing the banking and financial followed the global credit Financial markets remain Bank we increased sectors. We are confident in the crisis. In our view, this provides uneasy, economic growth has our cash earnings per capacity of the merged bank evidence of the strength of our slowed, confidence levels to perform through different now enlarged and merged entity. have deteriorated, and our share by 13 per cent. business cycles and through the businesses previously benefiting For years now we have said We continue to grow varied challenges that emerge from the funds emanating from we focus on producing growth from time to time (and have wholesale markets (in particular) our business across at profitable prices; on writing done so throughout our history). still face further challenges. Australia steadily by business that is prudent, However, we believe we are With confidence levels in profitable and promotes strong being disciplined in the the best partner business in worldwide financial markets relationships that will endure financial services and, therefore, business we write. seriously challenged, like all and deliver reliable, quality the best placed to work with banks, we found wholesale earnings into the future. our partners to reshape these funding (previously flowing to We have steadfastly refused customer channels to be more fund domestic activities) was to take risks onto the balance sustainable in the future. more difficult to obtain and more sheet or into our business just expensive. We have been able in pursuit of growth or market We remain confident in the to adequately fund all profitable share. This has helped us build future of our now enlarged and activities and businesses in our a resilient balance sheet, a good more robust merged bank and group and have not needed to reputation, and an excellent its capacity to handle changed make large provisions against customer and partner franchise. circumstances. Just as our doubtful loans. retail bank is flourishing from We have so far enjoyed 16 years the current flow of capital back The fact that Australia has of uninterrupted economic to the banking system, so we strong employment levels growth in our domestic market. believe our partner advised and a quite resilient economy, Conditions have become more businesses can be reshaped to coupled with our adherence to difficult this year, particularly deliver certainty, quality earnings prudent underwriting standards, in the international credit (to ourselves and our partners), has kept our credit performance markets, but this only reminds and high quality services to in good shape. However, we do us that we have survived – and customers who choose these remain watchful for any impact thrived – for so long because channels. on Australian households and successive boards, executive businesses, from changes in teams and our staff have Our merger, while far from performance of the Australian learned the lessons of hard complete, is on target. Our new economy given the pressures of times endured en route to leadership team has been in higher interest rates, fuel and this year’s 150th anniversary place since early 2008, and energy costs, food, etc. And we celebrations. We are utilising most business units have will be working proactively with the same disciplined approach been restructured to capitalise our customers through any such of our forebears – who on the opportunities that will difficulties, should the domestic managed depressions, credit emerge over the next decade. environment deteriorate. squeezes, wars, droughts Approximately one-third of the and other challenges. We are forecast merger synergies had Given the change in market applying our limited resources been delivered by 30 June conditions during the year, to writing business that is 2008 – with a $20 million we quickly adjusted our sound and profitable. It is not reduction in the cost base run priorities to focus on growing rocket science but, as Reserve rate, due to implementation retail deposits and reshaping Bank Governor Glenn Stevens of the early expected merger our asset and liability bases reminded guests at our synergies. We are well advanced to better reflect the new anniversary dinner, it is a lesson in reshaping the Adelaide Bank environment. By taking this forgotten by managers of many retail network to become part disciplined and focussed large and seemingly powerful of the national Bendigo Bank approach, we have delivered banks around the globe. retail network (embracing our 2 Full Financial Report 2008 From left to right community banking style). This report celebrates these > Chief General Manager Brand We will ensure we pay respect milestones in the simplest Development & Positioning Greg to the Adelaide brand – chosen and most appropriate way Gillett (left), Director Jenny Dawson and The Right Reverend Bishop by more than 180,000 South – with ‘snapshots’ of people Ron Stone at the Bank’s 150th Australians – but we see a celebrating. We think these anniversary dinner. great opportunity for Bendigo to photographs best reflect the > A re-enactment of the historic meeting qualities that differentiate us held at Abbott’s Hotel on 9 July 1858 become a meaningful competitor votes to form the Bendigo Land and in Adelaide Bank’s home State. from our competitors. Ours is Building Society that 150 years later a business built by people with is the Bendigo and Adelaide Bank. While we keep our eye on future the welfare of people in mind. > Managing Director Rob Hunt and possibilities, we believe it is Chairman Robert Johanson enjoy the Whether it was helping miners to important to celebrate, reflect anniversary festivities. build their own homes in 1858, and learn from our past and our developed the Community helping struggling borrowers to milestones: Bank® model to connect us remain in their homes during the with those communities, so we > The merger between 1930s, providing communities will continue to shape all of Bendigo and Adelaide on the wherewithal to overcome our businesses to fulfil the 30 November 2007 created adversity in the 1990s, or giving vital role played by banks in all Australia’s sixth largest bank.