Diamond Trust Bank Kenya Ltd. · NSEKE:DTK
Diamond Trust Bank Kenya — H1 2022 Earnings Presentation
33 slides from Diamond Trust Bank Kenya's earnings presentation, 2022
Slide 1: Investor Presentation H1 2022
INVESTOR PRESENTATION H1 2022
Slide 2: DTB's Footprint
DTB’S FOOTPRINT as at June 2022 DTB Kenya: As part of the customer acquisition sales strategy, DTB Kenya expects to expand its network by 35-40 new branches by 2024, with 20 by Q4 2022. 7% 130 growth in Group customer base Branches * DTB Kenya: (37,555 new : 64* : 34 3 new branches opened on 11th Ju
Slide 3: What Differentiates Us
WHAT DIFFERENTIATES US Commitment to a sustained Diversified distribution organisation-wide culture of channels and footprint. service excellence. ➢ a leading, Tier I East African commercial bank headquartered in Nairobi, Kenya Solid brand Extensive product range, with growing emphasis ➢ listed on t
Slide 4: DTB Vision 2020 Recap
DTB VISION 2020 RECAP DTB Vision 2020: ➢ Rank among the top tier banks by deposits. ➢ Be a sustainable deposit led bank (CASA). ➢ Play a leading role in transitioning economies to support economic development. ➢ Incorporate digital channels. 4 | DTB INVESTOR PRESENTATION | H1 2022
Slide 5: DTB Vision 2020 Recap
DTB VISION 2020 RECAP DTB Vision 2020 targeted DTB to rank among the top tier banks by deposits with a market share of over 5%. x5 growth in 10 years 5 | DTB INVESTOR PRESENTATION | H1 2022
Slide 6: DTB Vision 2020 Recap - Key Outcomes
DTB VISION 2020 RECAP- KEY OUTCOMES Key outcomes: ➢Gain in market share. ➢Growth in customer base. Market share of over 5% achieved in 2015. x3 570,867 279,965 Growth Customers x3 Customers Growth 187,398 100,083 Customers Customers 2021 2021 2011 2011 DTB Kenya DTB Group Customer Base Customer Base
Slide 7: DTB Strategic Aspiration
DTB STRATEGIC ASPIRATION Customer Base Customer • 1/4 Adult Kenyans banking with DTB by 2031 (10 million Customers) Base • 1/6 Adult Kenyans banking with DTB by 2026 (5 million Customers) Digital Transformation • Digital Applications Customer- • Digital Banking Platform Centric, Top • Digital Partne
Slide 8: DTB Strategic Aspiration
DTB STRATEGIC ASPIRATION Key Growth Initiatives– 2022 & Beyond • High impact brand campaigns. • Augment the capacity of the sales force team through new hires dedicated to new customer • Sustain and build on DTB’s market position as a Tier I acquisition as well as introduction of new sales bank, wit
Slide 9: DTB's Strategic Pillars - People - Digital Transformation
DTB’s STRATEGIC PILLARS- PEOPLE- DIGITAL TRANSFORMATION E x e c u t i on P i l l ar Summary Pillar Invest in digital applications that will wrap around the core banking system to create a scalable platform to accelerate customer growth and drive efficiency 1 Digital Applications Pillar Invest in a d
Slide 10: Customer Acquisition Sales Strategy Essentials
CUSTOMER ACQUISITION SALES STRATEGY ESSENTIALS Sales Force • Sales Team - Data tools & • KPIs - Revenue & Acquisition 24/7 Growth • Structure • Cross sell/Upsell - • Target Segments Onboarding, Customer • Budgets Relationships & • DTB Sales Culture - Sales Retention Support New Products/ Value Propo
Slide 11: Key Growth Initiatives - 2022 & Beyond
KEY GROWTH INITIATIVES– 2022 & BEYOND • High impact brand campaigns. • Digitally literate talent pool through new recruitments, re-skilling of existing employee • Sustain and build on DTB’s market position as a Tier I complement and retention of workforce. bank, with deposit-driven growth. • Augment
Slide 12: Key Growth Initiatives - Branch Expansion & Transformation
KEY GROWTH INITIATIVES– BRANCH EXPANSION & TRANSFORMATION 5 New Branches in Nov-2022 3 New Branches July 2022 1. Sarit Centre Branch Opened on 11 July 2022: 2. Baba Dogo Branch KShs 350 1. Imara Mall Branch. 2. Kahawa Sukari Branch. 3. Kayole Junction Branch million 3. Kamakis (Eastern Bypass) Branc
Slide 13: Riding the Digital Disruption Wave
RIDING THE DIGITAL DISRUPTION WAVE Investment in Digital Technology and Knowhow (KShs Bn) KShs 3.5 Billion to be invested in 2022-2024 KShs 350 million investment in branch Invested expansion KShs 2.4 Billion in 2022 and between 2018 and 2021 additional KShs 350 million up Investments geared to 2024
Slide 14: Riding the Digital Disruption Wave - Channel Performance (Count)
RIDING THE DIGITAL DISRUPTION WAVE Channel Performance- YTD June 2022 (Count) Kenya Group Kenya 18% 82% Branches 71% of financial transactions of financial transactions done outside branches done outside branches 90% on mobile 79% on mobile banking platforms banking platforms 29% Branches 3 out of 4
Slide 15: Riding the Digital Disruption Wave - Channel Performance (Value)
RIDING THE DIGITAL DISRUPTION WAVE Channel Performance- YTD June 2022 (Value) Kenya Group 18% Outside In value terms, In value terms, Branches 78% of transactions done in branches 82% of transactions done in branches 22% Outside Branches 15 | DTB INVESTOR PRESENTATION | H1 2022
Slide 16: Channel Performance - Kenya
CHANNEL PERFORMANCE- KENYA No. of Mobile Banking No. of Internet Banking (i24/7) No. of POS Acquiring No. of ATM (m24/7) Transactions (Mn) Transactions (Thousands) Transactions (Thousands) Transactions (Thousands) 297.6 27.5 630.6 229.9 477.6 451.0 19.7 402.5 39% 32% 23% 11% YTD Jun 2021 YTD Jun 202
Slide 17: DTB's Approach to Sustainability
DTB’s APPROACH TO SUSTAINABILITY DTB’s Environmental Social and Major Sustainability Milestones: Governance (ESG) Anchors: DTB joined the UN Global Compact Environment in 2021 and committed to support and implement the UNGC Principles on human rights, labour, environment, and anti-corruption. DTB ha
Slide 18: DTB's Approach to Sustainability
DTB’s APPROACH TO SUSTAINABILITY DTB hosted a series of financial literacy training DTB has collected and recycled over 6.2 tonnes of paper sessions aimed at empowering micro, small and waste since October 2019. medium-business owners to run their businesses in a sustainable and efficient manner. Th
Slide 19: Diversification of Loan Book - Group
DIVERSIFICATION OF LOAN BOOK- GROUP Loan Book Currency Mix Sector wise diversification 48% 46% 54% 52% LCY FCY H1 H1 2022 2021 Geographical Diversification 73% 2.1% 16% 10% 1% 0.1% DTB Kenya DTB Tanzania DTB Uganda DTB Burundi 19 | DTB INVESTOR PRESENTATION | H1 2022
Slide 20: Sector-wise Analysis of Loan Book and NPAs - Group
SECTOR-WISE ANALYSIS OF LOAN BOOK AND NPAs- GROUP 46.2 H1 2022 24.5 22.0 22.1 19.2 15.5 14.2 14.3 15.1 8.7 6.6 4.9 3.2 5.2 3.3 3.2 2.2 2.3 2.6 0.2 0.2 0.1 0.5 0.1 Trade Manufacturing Real Estate Tourism Transport and Agriculture Building & Personal Financial Energy & Water Mining Communication Const
Slide 21: Balance Sheet Highlights - Group
BALANCE SHEET HIGHLIGHTS- GROUP Loan book classification Provision Split Provision Movement (KShs Mn) (KShs Mn) 7% 12% 17% 20% 12,327 8,714 76% 68% 1,195 2,307 1,894 1,480 H1 2021 H1 2022 H1 2021 H1 2022 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 21 | DTB INVESTOR PRESENTATION | H1 2022
Slide 22: Non-Performing Loans & Coverage Ratios - Group
NON-PERFORMING LOANS & COVERAGE RATIOS- GROUP NPA Ratio Evolution (%) 15.8 15.9 14.7 14.1 13.1 12.8 12.6 12.1 10.3 3.4 2.3 2.1 H1 2021 FY 2021 H1 2022 Industry Gross NPA Ratio (Kenya) *Jun 2022 Group Gross NPA Ratio Group COR Kenya Gross NPA Ratio Specific Provision/ NPA Coverage Ratio (%) 41.0 40.2
Slide 23: Capital Strength
CAPITAL STRENGTH Kenya Group 21.0% 19.6% 19.4% 22.8% 21.2% 21.2% 19.7% 18.6% 18.6% 21.3% 19.9% 20.0% 16.0% 16.0% 16.0% 14.5% 14.5% 14.5% 16.0% 16.0% 16.0% 14.5% 14.5% 14.5% 11.5% 11.5% 11.5% 10.5% 10.5% 10.5% 11.5% 11.5% 11.5% 10.5% 10.5% 10.5% H1 2021 FY 2021 H1 2022 H1 2021 FY 2021 H1 2022 Min Cor
Slide 24: Liquidity
LIQUIDITY Liquidity (%) Kenya 60.3 61.6 58.9 20.0 20.0 20.0 H1 2021 FY 2021 H1 2022 Min. Liquidity (Statutory) DTB Kenya Group 62.1 60.4 60.0 20.0 20.0 20.0 H1 2021 FY 2021 H1 2022 Min. Liquidity (Statutory) Group 24 | DTB INVESTOR PRESENTATION | H1 2022 24
Slide 25: Balance Sheet Highlights - Group
BALANCE SHEET HIGHLIGHTS- GROUP Amounts in KShs ‘Bn’ H1 H1 Movement H1 2021- 2021 2022 H1 2022 Net Loans & Advances 204 234 14.7% Non-performing Loans 22 30 36.3% Government Securities 157 173 10.2% Total Assets 430 485 12.8% Total Customer Deposits 314 346 10.2% CASA Deposits 142 163 14.8% Sharehol
Slide 26: Balance Sheet Growth - Group
BALANCE SHEET GROWTH- GROUP 52.7% 29.1% 10.9% 7.3% 83.6% 7.3% 9.1% 29 Bn 46 Bn growth in Loans growth in customer advances deposits 26 | DTB INVESTOR PRESENTATION | H1 2022 26
Slide 27: Deposit Growth - H1 2022 Group
DEPOSIT GROWTH- H1 2022 GROUP Deposit Mix 60% liquidity ratio supported 60% 54% 57% by stable funding mix on the back of strong deposit growth. 46% 43% H1 2021 H1 2022 Corporate Retail H1 2021 H1 2022 Currency Mix H1 2022 34% 31% 52% 10% 8% 60% 13% 68% growth in deposits. 1% 32% 1% Fixed Call Saving
Slide 28: Analysis - Contribution by Subsidiaries
ANALYSIS-CONTRIBUTION BY SUBSIDIARIES Amounts in KShs ‘Bn’ BALANCE SHEET H1 2022 H1 2021 : 339 Bn (69.9%) : 311 Bn (71.2%) Total Assets : 78 Bn (16.0%) : 63 Bn (14.4%) : 64 Bn (13.2%) : 59 Bn (13.5%) : 5 Bn (0.9%) : 4 Bn (0.9%) : 485 Bn : 430 Bn : 182 Bn (73.0%) : 164 Bn (75.8%) Gross Loans & Advanc
Slide 29: P&L Highlights
P&L HIGHLIGHTS Group Kenya FY H1 H1 FY H1 H1 2021 2021 2022 2021 2021 2022 Mvt Mvt NIM 5.1% 5.4% Net Interest Income NIM 13.3% 20.0 9.8 11.1 12.7 6.5 7.1 9.1% 4.7% 4.9% FTI 25.4% 26.1% 14.0% 6.3 3.3 3.8 Total Non- Interest Income 4.1 2.3 2.3 2.1% FTI 26.0% 24.8% Gross Operating Income 13.5% 26.3 13.
Slide 30: P&L Highlights - Group
P&L HIGHLIGHTS- GROUP Operating Expenses Credit Impairment (KShs Mn) 8,000 52.0% 16,123 7,000 50.0% 6,000 12,336 11,799 48.0% 5,000 4,055 8,714 3,535 46.1% 4,000 46.0% 45.3% 3,000 44.0% 2,000 3,787 3,085 2,884 42.0% 2,421 1,000 0 40.0% H1 2021 H1 2022 Credit Impairment General Provision Specific Pro
Slide 31: P&L Highlights - PBT Contribution
P&L HIGHLIGHTS PBT CONTRIBUTION 79.6% 72.6% 64.9% Total Contribution (Actual 27.4%, June 2021-20.4%) 15.4% 13.6% 12.3% 11.4% 10.5% 5.9% 3.5% 2.5% 2.5% 1.9% 1.7% 1.6% KE UG TZ BR DTBI Actual Dec 21 Actual June 22 Actual June 21 INSURANCE BANKING SUBSIDIARIES INTERMEDIARY 31 | DTB INVESTOR PRESENTATIO
Slide 32: Key Financial Ratios
KEY FINANCIAL RATIOS DTB KENYA GROUP FY H1 H1 FY H1 H1 2021 2021 2022 2021 2021 2022 75.6% 75.7% 77.4% Loan to 70.8% 68.9% 72.1% Deposit 40.4% 36.4% 39.6% CASA Ratio 47.8% 45.2% 47.0% 15.3% 11.8% 15.1% NPL Ratio 12.3% 10.0% 12.0% 37.4% 39.8% 39.4% NPL Coverage 39.4% 40.2% 41.1% Ratio 24.2% 26.0% Fee
Slide 33: We welcome all feedback via email
We welcome all feedback via email on dtbinvestorrelations@dtbafrica.com All image rights and credits due to the photographers of the images.
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