# BBC - BNK Banking Corporation



## System (15 May 2012)

Goldfields Money Limited (GMY) currently provides a broad range of retail banking products and services for its Members, such as home or personal loans, term deposits, savings accounts and cash management facilities.

GMY is expected to list on the ASX on Tuesday, May 22.

http://www.gcu.com.au


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## springhill (4 August 2012)

MC - $15m
SP - 95.5c
Shares - 15.6m
Options - Nil listed
Cash - 

*Top 5 Shareholders*
1. Rocket Science Pty Ltd 6.8%
2. Dreampoint Investments Pty Ltd 3.7%
3. Kemast Investments Pty Ltd 2.2%
4. Wulura Investments Pty Ltd 2.2%
5. Jasper Hill Resources Pty Ltd 2.2%

*Financial Summary*
• As a credit union, growth has been constrained by a declining member base (3,527 in 2005 versus 2,643 at demutualisation) and an inability to raise new capital.
• Ability to invest in developing new products and services was constrained by the low level of capital.
• Goldfields had a conservative approach with a Capital Adequacy Ratio significantly higher than other credit unions (20.7% compared to an average of circa 17.7%).
• FY11 normalised NPAT (ex demutualisation costs) of $570,000 represented a return on year end equity of 9.9% versus a 7 year average normalised historic return on equity of 11.1%.
• FY’12 NPAT guidance from the February 12 Prospectus is for $410,000 or $566,000 normalised . The implied post IPO Net Assets at 30 June ‘12 are likely to be circa $14m or approximately 89 ¢ps.

*Return on Equity – Target of 10%*
• Goldfields ROE ranged from 7% to 15% over the last 7 years with normalised FY2011 being 9.9%.
• Major Banks ROE of 16.7% compared with Regional Banks of 6.7%
• Objective is to limit erosion of recent profitability whilst implementing a growth strategy, which introduces new costs ahead of revenues.
• Goldfields’ target ROE is 10% and are seeking to achieve this run-rate over the second year after demutualisation, ie around June’14.

*Capital Surplus Following a $9m IPO*
• Current Capital Adequacy Ratio (CAR) of 40% (as per Prospectus forecast) compared to Board internally assessed minimum CAR requirement of 20%.
• Housing Loans of approximately $88m can be settled before additional capital is required.

• Adopting a 20% Capital Adequacy Ratio from a $14m equity base Goldfields can grow out its business to total assets of circa $146m.
• Within the growth costs involved in building Goldfields, the target is for a 10% ROE.

*Growing The Loan Book*
• Key Drivers
– Average Home Loan size of $281,000 (source: ABS Housing Finance)
• To lend a new $88m by June 2014 Goldfields would need to make 313 average sized home loans.
• As the property sector in Western Australia lifts of current depressed levels, Goldfields believe this is very achievable.
• Margin Management
– Higher yielding products – personal and commercial loans (capped at approximately 15% of portfolio)
– Limit discounting where possible – highlight service offering
• Channels
– Development of package aimed at key WA based Business
– Accountants, Real Estate Agents; Financial Planners
– Easy to apply online; quick answer and response

*Sourcing Deposits*
• Key Drivers
– Funding of $3.6m per month required to meet lending targets. A soft single channel launch in June 2012 has enabled Goldfields to secure funding generally of this magnitude for both June and July.
• Margin Management
– Lower yielding products:
• Cash Management Account (subject to business case).
• Online savings account .
• Launch of new transaction account: eg 2% interest if you put your payroll through it; linked to loan account offering.
• Channels
– Part of integrated package offering .
– Shareholder package.
– Replicate high net worth deposit service.
– Distributor relationships.
• Marketing
– Key point of advertising emphasising the $250,000 Government Guarantee on deposits – official seal to be used on advertising and on the website.

*Net Interest Margin*
• Current Goldfields Money Margin is approximately 2.6%.
• Peer analysis would suggest this will reduce with growth, which has been factored into Goldfields’ strategy.

*Other Profit Drivers*
• Non Interest Income
– Review of current fee structures to ensure both competitiveness and cost recovery.
– “Not ashamed” to charge fee for good service.
– Ancillary relationships e.g. insurance; financial planning.
• Expenditure control
– Continuing tight control over all expenditure. Initial fixed cost investment required to drive the growth strategy.
• Liquidity / Treasury management
– Opportunities to maximize earnings from excess liquidity within strict policy guidelines.

*Key Risks*
• Provisioning
– Loan book is currently well secured and modest arrears are been managed effectively. There is no intention to materially increase the risk profile.
• RBA Interest rate reductions
– Current structure of the loans and deposits portfolio reduces earnings when interest rates are reduced. Introduction of Fixed Rate Home Loans will manage some of the interest rate risk in the short term.
• Competition
– Significant competition continues to exist for both loans and deposits including the potential for relaxation of credit standards from some competitors.
• Economy Deteriorates
– Global factors continue to weigh on confidence in the Australian context. Western Australia continues to have a bright outlook.
• Regulation
– Increasing compliance burden from Australian regulators in response to global factors.


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## piggybank (7 January 2014)

P&F daily update:-


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## greggles (9 April 2018)

Anyone else notice this quiet achiever? 

Goldfields Money up another 4.62% today to $1.70. The company is a Western Australian based authorised deposit-taking institution formerly known as Goldfields Credit Union.

Firstmac tried to take them over in November last year by offering $1.12 per share before increasing the offer to $1.27 per share. The directors recommended that shareholders reject the offer and the bid failed.

Since then the share price has steadily continued north and the company is progressing a proposed merger with Finsure. Loans under management have grown to more than $200 million.


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## System (20 March 2019)

On March 20th, 2019, Goldfields Money Limited (GMY) changed its name and ASX code to BNK Banking Corporation Limited (BBC).


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## Smurf1976 (16 April 2019)

greggles said:


> Anyone else notice this quiet achiever?



I must commend you for your posting right at the all time high for this stock, the actual day of the high from which the price has since dropped 65%.  

Who says it's not possible to pick tops and bottoms? 

I was thinking it looked like a plausible bottom was being made but then it fell another 15% today to the lowest price since at least 2012 (data only goes back that far).

Thoughts?


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## greggles (16 April 2019)

Smurf1976 said:


> I must commend you for your posting right at the all time high for this stock, the actual day of the high from which the price has since dropped 65%.
> 
> Who says it's not possible to pick tops and bottoms?
> 
> ...




Yeah, it has completely tanked since I posted just over a year ago. What seemed like a quiet achiever at the time was in reality a disaster waiting to happen.

I'm a little stumped by the scale of the share price decline though. Their FY2019 Half Year results didn't seem so bad. Perhaps they have just been caught up in the negativity surrounding bank stocks or perhaps there is something that I am missing?


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## Smurf1976 (16 April 2019)

Back up to 69 cents today.

I think a big factor here is the lack of liquidity with this stock. Only 1437 shares traded today thus far with a value of less than $1000 so stuff all basically.


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## So_Cynical (1 May 2019)

greggles said:


> Anyone else notice this quiet achiever? Goldfields Money up another 4.62% today to $1.70.




April 9 / 2018 - you picked the exact top, all down hill from there. 

They merged with Finsure and have a banking licence, its just hard to like banks and mortgages and all that at the moment, these small players are
going to be right up against it with the big 4/5/6 and i cant see the new open banking regime making that much difference. many are hyping it and perhaps
that hype may help the small players - fundamentally BBC looks cheap.
~


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## Smurf1976 (17 July 2019)

Price closed on Monday at 59 cents, down 1 cent for the day.

Reason I'm posting though is that there's an order in the market to buy 3 million shares at 57 cents. To put that into perspective, that's about the same volume as traded in the first six months of 2019 and compares with Monday's volume of 33,017 or the whole of last week's volume of 68,278.

Assuming the order's legit then someone's seriously keen.


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## Smurf1976 (8 September 2019)

Smurf1976 said:


> Reason I'm posting though is that there's an order in the market to buy 3 million shares at 57 cents.



I haven't followed it to see if it's the same order gradually being filled but there's still a buy order for 920,000 shares @ 54.5 cents sitting there.

Someone with a reasonable amount to invest seems rather keen on this.


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## divs4ever (4 August 2021)

BNK ALLIANCE WITH GOLDMAN SACHS FOR A$500M SECURITISATION WAREHOUSE Further to its ASX release dated 19 May 2021. BNK Banking Corporation Limited (ASX:BBC) (“BNK” or the “Group”) is pleased to an announce that BNK and Goldman Sachs have formally agreed an alliance to originate, fund and securitise specialist mortgages in Australia. Pursuant to that agreement BNK has signed binding definitive legal documents for an uncommitted A$500,000,000 residential mortgage warehouse program funded by Goldman Sachs. Key Highlights  A$500,000,000 uncommitted facility limit.  BNK to act as Originator, Servicer and Trust Manager for the program.  Goldman Sachs to provide funding and act as arranger, structuring agent and distributor for securitisations.  Perpetual Corporate Trust to act as Trustee and Custodian.  P.T Limited to act as Security Trustee. The Goldman Sachs Group, Inc. is a leading global corporate advisory, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centres around the world. The new facility follows the announcement of an A$250,000,000 prime residential warehouse program provided by Bendigo and Adelaide Bank in April 2021 and is the culmination of nearly 24 months of planning and execution. The facilities together further meet the Group’s objectives, as follows:  Diversify funding sources including securitisation.  Increase funding stability, directly supporting our lending growth aspirations.  Broaden our product capabilities in the mortgage sector. Brett Morgan CEO Bank said “This alliance with Goldman Sachs is a strong endorsement of the scale, uniqueness and value of BNK’s mortgage platform. Goldman Sachs’ operational due diligence was an extremely thorough and rigorous process which has helped us establish that BNK is ready for the securitisation markets and the next stage of growth. Goldman Sachs is leveraging our origination and servicing expertise and working with Goldman Sachs also allows us to access securitisation markets internationally faster to further diversify and strengthen funding sources. We look forward to launching this product range this month and working with Goldman Sachs to make the specialist mortgage program a great success.” 

 DYOR


 i used to hold this  when it was GMY , but it started on the current trajectory  , so went for the parachute ( while still in profit )

 i am happy i made the correct choice ( for me ) here


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## greggles (21 September 2021)

BBC announced today that it is undertaking a strategic review of the Company with the objective of maximising shareholder value.

Frankly, the first thing that popped into my mind when I heard this is "why the bloody hell did it take you so long?"

What was management thinking while the share price plunged from around $1.70 in April 2018 to 40c two years later?

Interesting to note that they claim to have received several unsolicited approaches from "interested parties" implying that the company may potentially be subject to a takeover bid at current levels. It's no wonder that there are predators circling who see value given management failures over the last three years.

Too little, too late if you ask me.


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## greggles (15 December 2021)

greggles said:


> Too little, too late if you ask me.




I was wrong. The BBC share price has bounced back strongly over the last few months. It looks like the strategic review has unlocked some value, culminating in the sale announced today of its mortgage broking aggregator subsidiary Finsure Holding Pty Ltd to MA Financial Group Limited (MAF) for $151.6 million in cash.

I think this is a good move. Selling Finsure (at what looks to be a good price) will provide a substantial cash injection and allow BBC to focus more on expanding and streamlining their core business. I think we will see some further gains for BBC in 2022 if management can keep the good news coming.


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## divs4ever (15 December 2021)

i held this  ( and sold it ) as GMY

 let's see if it a smarter operator now  ( even the biggest ASX listed banks  are trying to uncomplicate their business model  , now )

 maybe it is a banker thing  to rush toward extra complexity


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