Zenith Bank Plc · NSENG:ZENITHBANK
Zenith Bank — H1 2013 Earnings Presentation
31 slides from Zenith Bank's earnings presentation, June 2013
Slide 1: 6-Month Group Results Presentation to Investors & Analysts
6-Month Group Results Presentation to Investors & Analysts Click to edit Master title style IFRS Compliant Results June 2013 Click to edit Master subtitle style people | technology | service ZENITH BANK PLC people | technology | service
Slide 2: Disclaimer
Disclaimer This presentation is based on the consolidated financial statements of Zenith Bank Plc, a company incorporated in Nigeria on 30 May 1990, and its subsidiaries (hereinafter collectively referred to as "the Group"). The financial statements are prepared in accordance with the International
Slide 3: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 4: The Nigerian Economy
The Nigerian Economy … GDP Growth: The GDP grew at the rate of 6.72% y/y in Q2 2013, up by 33 bps from 6.39% GDP Growth Rate recorded in the corresponding quarter of the previous fiscal year. Key (2013 GDP Growth y/y: Q2 USA- 1.4%; Q2 UK – 1.4%; Q1 South Africa – 1.9% ) Theme The non-oil sector w
Slide 5: Our Investment Proposition
Our Investment Proposition Strong earnings capacity and growth, Solid and liquid capital base, strengthened ERM practices, Good returns on investments and excellent customer services Key Theme Listing on London Exchange: Zenith Bank has listed a non-capital raising GDR on the London Stock Exchange
Slide 6: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 7: Financial Highlights
Financial Highlights Key On Course for an Impressive Performance in 2013. Theme Gross Earnings: N171.02bn +13.18% YoY Net Interest Income: N91.38bn +14.56% YoY Net Interest Margin: 8.87% +1.62% YoY P&L PBT: N54.08bn +7.81% YoY PAT: N45.42bn +7.09% YoY Customer Deposit: N2.00tn +3.72% (YTD) Balance T
Slide 8: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 6 mths to 6 mths to YOY Jun-13 Jun-12 Change Gross Income 171,024 151,103 13.18% Continuing Operations: Interest Income 128,323 110,881 15.73% Interest Expense -36,966 -31,132 18.74% Net Interest Income 91,357 79,749 14.56% Impairment Charge for Credit Losse
Slide 9: Strengthening earnings and profitability
Strengthening earnings and profitability... Comments Consistently high Net Interest Margin 10% Improved Net Interest Margin (NIM) on the back of 8.91% 8.87% 8.72% 8.77% efficient balance sheet management (optimal resource 8.19% 8% allocation and assets pricing). 6% Cost to Income Ratio increased
Slide 10: Revenue Base: Sustained Diversification
Revenue Base …Sustained Diversification H1 2013 H1 2012 Interbank Interest Income Interbank Placements PBT Placements 1.8% T-Bills & 1.6% Inv. Securities 36.2% T-Bills & Inv. N'million H1 2013 H1 2012 YoY Securities Interbank Placements 2,274 1,771 28% 34.2% T-Bills & Inv. Securities 46,463 37,959 2
Slide 11: Continuous efforts in cost-reduction strategies
Continuous efforts in cost-reduction strategies ….. H1 2013 H1 2012 Interest Expenses Borrowed Current Borrowed funds accounts Inter- 1.2% 6.5% funds Current Inter-bank bank N'million H1 2013 H1 2012 YoY 1.0% accounts takings takings Savings 6.3% Savings Current accounts 2,318 2,032 14% 0.6% 1.4% ac
Slide 12: Balance Sheet - Assets
Balance Sheet- Assets Group Group YTD Group (N'm) Jun-13 Dec-12 Change Jun-12 Cash and balances with central banks 284,196 332,515 -14.53% 180,852 Treasury bills 649,673 669,164 -2.91% 460,260 Due from other banks 346,613 182,020 90.43% 420,475 Loans and advances 1,066,225 989,814 7.72% 972,242 Inve
Slide 13: Balance Sheet - Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group YTD Group (N'm) Jun-13 Dec-12 Change Jun-12 Customers deposits 2,000,997 1,929,244 3.72% 1,701,005 Current income tax 1,017 6,577 -84.54% 12,781 Deferred income tax liabilities 5,578 5,584 -0.11% 8,957 Other liabilities 201,686 117,355 71.86% 265,592 O
Slide 14: Sustained assets & liabilities match
Sustained assets & liabilities match.. Loans Growth Loans & Advances H1 2013 1,200 1,125.1 Advances 1,094.3 On-lending Facilities under finance 998.5 993.1 1,014.5 lease 5.3% 1,000 1.5% N'bn Overdrafts 800 29.5% Term Loans 63.7% 600 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Customer Deposits Deposits Mix H
Slide 15: Continued market dominance through strong liquid asset base and funding mix
Continued market dominance through strong liquid asset base and funding mix… H1 2013 H1 2012 Current balances with Liquid Assets Current Current Current banks within balances with balances balances Nig. banks outside with with Treasury bills 0.7% Nig. banks banks 50.7% 18.1% N'million H1 2013 H1 201
Slide 16: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 17: P&L – By Geography
P&L – By Geography 6 Months Ended Rest of Nigeria Europe Eliminations Consolidated Gross Revenue – H1 2013 Jun 2013 (N’m) Africa Nigeria 171,024 93.83% Total Revenue 162,864 7,403 3,301 -2,544 Total Expense -112,353 -4,889 -2,243 2,544 -116,941 Profit Before Tax 50,511 2,514 1,058 - 54,083 Europe 1.
Slide 18: P&L – By Sector
P&L – By Sector 6 Months Ended Discontinued Consolidated Corporate Institutional Public Retail Jun 2013 (N’m) Operations Total Revenue 58,909 37,527 29,509 37,149 7,930 171,024 Total Expenses -42,336 -19,351 -21,711 -27,607 -5,937 -116,941 Profit Before Tax 16,573 18,176 7,798 9,542 1,993 54,083 Tax
Slide 19: P&L – By Sector
P &L – By Sector Institutional Gross Revenue – H1 2013 21.94% Corporate & Commercial 34.44% Public 17.25% Discontinued Operations 4.64% Retail 21.72% Corporate and Commercial continues to be the hub of our business………. 19
Slide 20: Deposit & Loans – By Sector
Deposit & Loans – By Sector June 2013 Total Deposits - June 2013 Gross Loans - N2.00tn N1.07tn 20
Slide 21: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 22: Healthy Risk Assets Portfolio
Healthy Risk Assets Portfolio… NPL Coverage Ratio Our Risk Management Strategy The group adopts a complete and integrated approach to risk management that is driven from the Board level to the operational activities of the bank. Risk management is practiced as a collective responsibility coordin
Slide 23: Focused risk management via portfolio diversification
Focused risk management via portfolio diversification Loans by Sector – H1 2013 No concentration risk 23
Slide 24: NPL by Segment
NPL by Segment H1 2013 General Others Agriculture Commerce/Trading 0.21% 1.24% 20.16% Oil and Gas 21.67% Education 0.02% Communication 6.92% Transportation 1.49% Public Utilities 0.00% Power 1.08% Capital Market 19.49% Government Manufacturing Consumer Credit 0.03% Finance and Insurance Real Estate
Slide 25: Strong Capitalization and Liquidity
Strong Capitalization and Liquidity Liquidity and Capital Adequacy 70% 64% 61% 57% 59% 60% 50% Capital and liquidity 36% 40% 34% 29% 31% ratios for the Bank – well % 30% above industry 20% 10% requirements. 0% 2009 2010 2011 2012 Liquidity Capital Adequacy Capital Mix Capital base – 98.20% 99.53% 99
Slide 26: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 27: Strategies for driving our vision
Strategies for driving our vision 1 The Bank focuses on cost 2 The Bank accomplishes this Compete effective deposits from the strategy by: aggressively for retail end of the market to lend Consistent focus and market share, but focus on high to the corporate end with Delivering superior invest
Slide 28: Our Key Growth Target Sectors
Our Key Growth Target Sectors Driving profitability with our competitive advantages Sector Identified Growth Competitive Advantage Sectors Business line & Geography Infrastructure Strong capital and liquidity Manufacturing Strong brand Oil and Gas (Upstream & Strong international rating Downst
Slide 29: Outlook and Prospects for FY2013
Outlook and Prospects for FY2013 Mobile Banking: In a bid to encourage and promote person- Agriculture: The Federal government’s resolve to boost the agricultural sector in the country would no doubt create quite to-person payments and leverage on mobile phone channels as a number of opportuniti
Slide 30: Outlook and Prospects for FY2013
Outlook and Prospects for FY2013 Representative Office: We have officially opened a Deposit Base: Our drive for low cost and appropriately representative office in Beijing, the capital city of the Peoples mixed deposit base to fund our credit and money market Republic of China. The group is cert
Slide 31: Thank you
Q&A Thank you 32