First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — 9M 2022 Earnings Presentation
27 slides from First Holdco's earnings presentation, Oct 28, 2022
Slide 1: 9M 2022 Results Presentation
9M 2022 Results Presentation 28 October 2022
Slide 2: Disclaimer
Disclaimer This presentation is based on FBN Holdings Plc’s (‘FBNH’ or ‘FBNHoldings’ or the ‘Group’) unaudited financial statements for the period ended 30 September 2022. The Group’s Financial statements represent FBN Holdings Plc and its subsidiaries. FBNHoldings has obtained some information from
Slide 3: Key Highlights
FBNHoldings B- Key Highlights
Slide 4: Well positioned to navigate evolving macro economic developments
Key Highlights Well positioned to navigate evolving macro economic developments Increasing inflationary environment Revenue expectations of high oil price deflated by production volume • Change in policy bias 120 .0 2.5 • FBNHoldings to extract value from the opportunities presented by securitizatio
Slide 5: Clear strategic focus delivering results across the organisation
Key Highlights Clear strategic focus delivering results across the organisation • Demonstrated sustainable income growth from core business • 24.9% y-t-d growth in Loans and advances to ₦3.6 trillion Quantum leap in • 12.8% y-t-d growth in Deposits to ₦6.6 trillion profitability A good business plan
Slide 6: Successfully transitioning group capabilities to meet evolving end dynamics
Key Highlights Successfully transitioning group capabilities to meet evolving end dynamics • Significantly improved governance environment • Strong franchise and brand recognition • Highly experienced, diverse and independent Governance / • Systemic relevance Board to support strategy execution • Cu
Slide 7: Credit Rating agencies acknowledge our business turnaround
Key Highlights Credit Rating agencies acknowledge our business turnaround Fitch upgrades credit ratings to B/Stable, as S&P & Moody’s affirm improving asset quality Strong Improved Improved Franchise Governance Asset Quality Strong Strong Low Non-interest Internal Capital Cost of Funding Income Gene
Slide 8: Financial Review
FBNHoldings B- Financial Review
Slide 9: Strong revenue and profitability despite the challenging operating environment
Financial Review Strong revenue and profitability despite the challenging operating environment Gross Earnings ₦’billion* Net-Interest Income ₦’billion* Non-Interest Income ₦’billion* Operating Income ₦’billion Impairment Charge ₦’billion +26.6% +53.1% +1.6% +28.0% +5.4% 34.8 36.7 547.2 249.5 406.6
Slide 10: Enhanced profitability and strengthened balance sheet
Financial Review Enhanced profitability and strengthened balance sheet Post Tax ROaE (%) Net Interest Margin (%) Cost of Funds (%) NPL Ratio % NPL Coverage (%) 13.7 5.4 6.1 75.1 2.1 62.2 4.4 1.9 4.7 7.2 9M 21 9M 22 9M 21 9M 22 9M 21 9M 22 FY 21 9M 22 FY 21 9M 22 Post Tax ROaA (%) Cost to Income (%)
Slide 11: Revenue growth supported by improved interest income
Financial Review Revenue growth supported by improved interest income Gross Earnings ₦’billion* Gross Earnings Mix Interest Income Mix • Gross earnings improved by 26.6% y-o-y to ₦547.2billion in 9M 22 • Optimising yields while moderating cost of 20.0% 22.0% funds resulting in enhanced net interest
Slide 12: Deepening unique value-added offerings
Financial Review Deepening unique value-added offerings • Fees & Commission remain resilient with 7.3% y-o-y Non-interest Breakdown Net (₦’billion) Fees & Commission Breakdown Gross (₦’billion) growth +1.6% +6.8% • Letters of credit commission grew 43.8% y-o-y in line with our facilitation capabilit
Slide 13: E-business remains key to non-interest income
Financial Review E-business remains key to non-interest income and supports earnings from non-capital consuming sources Electronic Banking Revenue ₦’billion 56.4 -4.9% CAGR 21% 48.7 42.0 48.0 26.7% 40.0 23.4% 23.7% 24.0% 27.1% 34.0 15.9% 15.1% 15.0% 24.2% 29.0% 19.2% 25.0 24.9% 21.8 30.5% 27.7% 32.7
Slide 14: Mobile & Internet Agent Banking
Financial Review Driving growth underpinned by customer-centric innovation Volume (million) Value ₦’billion -7.4% +0.2% CAGR 167% CAGR 112% 4,451 1,189 3,677 1,024 882 817 3,243 3,249 USSD 800 2,566 580 1,968 312 883 28 33 2016 2017 2018 2019 2020 2021 9M 2021 9M 2022 2016 2017 2018 2019 2020 2021 9
Slide 15: Cost management remains a key priority
Financial Review Cost management remains a key priority; elevated opex reflects high inflationary & regulatory environment OPEX Drivers (₦’billion) • Opex increased by 15.2% y-o-y to ₦264.3 billion impacted by the high inflationary environment and macroeconomic headwinds • Regulatory cost increased
Slide 16: Customer deposits continue an upward trend, reinforcing our robust funding base
Financial Review Customer deposits continue an upward trend, reinforcing our robust funding base • Customer deposits increased by 12.8% to Customer Deposits Mix (₦’billion) ₦6.6 trillion (Dec 2021: ₦5.9 trillion) • Retail franchise remains key driver of deposit 9M 22 1,933 2,310 1,273 1,066 18 6,600
Slide 17: Maintaining a well diversified and high-quality loan book
Financial Review Maintaining a well diversified and high-quality loan book FirstBank Nigeria Loan Currency Mix FirstBank Nigeria Gross Loan per Sector (₦’trillion) 9M 22 19.7% 16.7% 10.3% 7.6% 8.6% 5.1% 3.6% 5.0% 23.4% 3.4 50.4% 47.3% 54.2% 52.1% 54.3% 54.3% 2.6 FY 21 18.2% 15.8% 10.3% 7.0% 9.5% 5.9
Slide 18: Enhanced balance sheet strength supported by sustained asset quality improvements
Financial Review Enhanced balance sheet strength supported by sustained asset quality improvements FirstBank Nigeria NPL per Sector NPL Ratio General Commerce 8.4% 9M 22 Agriculture 1.2% 7.5% 19.1% 3.4% 4.0% 21.0% Real Estate 26.0% FY 21 4.3% 22.8% General 4.1% 5.7% Oil & Gas services 5.8% Oil & Gas
Slide 19: Strengthened balance sheet and a solid platform for sustainable capital accretion
Financial Review Strengthened balance sheet and a solid platform for sustainable capital accretion FirstBank Nigeria CAR (%) • 9M 22 CAR1 at 17.0% including 9M 22 profit (15.6% exc. profit) 17.4 17.1 • Organic capital generation remains in focus 1.5* • Capital remains adequate and supportive of Reg.
Slide 20: Committed to driving corporate responsibility and sustainability
Financial Review Committed to driving corporate responsibility and sustainability Strategic Driving sustainable finance Empowering Supporting Contributing to Priorities our communities and investments people Environmental Sustainability ESG FOOTPRINTS RESPONSIBLE LENDING & CONSERVATION FINANCIAL INC
Slide 21: Appendix
FBNHoldings & Appendix
Slide 22: Commercial Banking, Merchant Banking and Asset Management Group
Appendix Commercial Banking, Merchant Banking and Asset Management Group Commercial Banking Group Merchant Banking and Asset Management Group (FBNQuest) Key financial highlights & performance ratios Key financial highlights & performance ratios Income statement Statement of Financial Position Income
Slide 23: Key regulatory and policy interventions
Appendix Key regulatory and policy interventions CBN issued approval in principle for CBN issued a circular on the payment system banking license to enrolment of Other Financial CBN expanded the automation of Airtel Africa and MTN Institutions (OFIS) on the Credit Risk Savings deposit rate Forex for
Slide 24: First Mobile
Appendix Non-financial highlights Employees 5,333,243 POS 18,008 735 First Mobile 14,180,019 8,248 Automated AT M c a rd s 39.2 11.99 Teller Machines 60% 39% m i l l i o n million 3,070 Male Female Customer accounts* *Including wallets 24
Slide 25: Ongoing transformation lays solid platform for growth
Appendix Ongoing transformation lays solid platform for growth FY 2016 9M 2022 Optimising earnings through efficient balance sheet Post-tax 2.1% 13.7% and cost management ROaE Improving profitability PPOP/ Impairment 1.1 3.9 charge Improvement in subsidiary contribution to *Intl. Subs. PBT <0.0% 34.
Slide 26: Definitions
Appendix Definitions ₋ Cost-to-income ratio computed as operating expenses divided by operating income ₋ Cost of risk computed as annualized credit impairment charges divided by the average opening and closing gross loans balances ₋ Net-interest margin computed as annualised net interest income divi
Slide 27: Contact details
Appendix Contact details Head, Investor Relations Tolulope Oluwole Tolulope.O.Oluwole@fbnholdings.com +234 (1) 905 2720 Investor Relations Team investor.relations@fbnholdings.com : +234 (1) 905 1086; 1147 27