Slide 1: Stanbic Holdings Plc
Stanbic Holdings Plc Financial performance for the half year ended 30 June 2018
Slide 2: Contents
Contents Section Page 1. Welcome and remarks 3 2. Half year review 4 3. Detailed financial analysis 9 4. Corporate and Investment Banking (CIB) 18 5. Personal and Business Banking (PBB) 21 6. Stanbic Insurance Agency Limited (SIAL) 24 7. SBG Securities (SBGS) 27 Q&A
Slide 3: Welcome and remarks
Welcome and remarks
Slide 4: Half year review
Half year review Charles Mudiwa Chief Executive, Stanbic Bank
Slide 5: Operating environment
Operating environment Macro- economic Regulatory Market opportunities Market threats environment environment Government’s Big 4 Cyber security risk & Inflation 1st year adoption of impact on customer June 2018 4.3% vs. IFRS 9 safety June 2017 9.2% Technological innovations Central Bank Rate cut in N
Slide 6: Results highlights
Results highlights The Group (Kenya Bank, South Sudan branch, SBG Securities and Stanbic Insurance Agency KES 11,178m 136.5b 17% Limited) reported a profit after tax of KES 3.6b Total revenue Customer loans ROE Total revenue grew by 22% on account of strong 2017: KES 9,169m 2017: 117.9b 20
Slide 7: Recap of our strategy
Recap of our strategy Our Purpose Kenya is our home, we drive her growth To be a leading financial services organisation in Kenya delivering exceptional Our Vision client experiences and superior value In executing our strategy our key focus areas are We measure our progress using five strategic val
Slide 8: Stanbic Holdings Plc structure
Stanbic Holdings Plc structure Standard Bank Group Limited (South Africa)* 100% Stanbic Africa Holdings Limited Other Shareholders (UK) 68% 32% Stanbic Holdings Plc 100% 100% 100% Stanbic Insurance Stanbic Bank SBG Securities Agency 100% 100% Kenya South Sudan Branches Branch Legal entities operate
Slide 9: Detailed financial analysis
Detailed financial analysis Abraham Ongenge Chief Finance Officer
Slide 10: Summary income statement
Summary income statement June-2018 June-2017 KES millions KES millions Change % Net interest income 5,608 5,012 12 Non-interest revenue 5,569 4,157 34 Total income 11,177 9,169 22 Operating expenses (5,730) (5,143) (11) Pre-provision profit 5,447 4,026 35 Credit impairment charges (253) (1,818) 86 T
Slide 11: Revenue
Revenue Net interest revenue Non-interest revenue 10,000 KES millions 6,000 8,000 KES millions 5,000 6,000 Interest income 4,000 Trading and other Interest expense income 4,000 3,000 Net interest income Net fees and 2,000 2,000 commissions 1,000 - Jun 2018 Jun 2017 - Jun 2018 Jun 2017 Net interest
Slide 12: Credit impairment and operating expenses
Credit impairment and operating expenses Credit impairment charges Operating expenses 7,000 57.0% KES millions 2,000 KES millions 4% 56% 56.0% 3.1% 6,000 55.0% 3% 5,000 1,500 54.0% Other operating 3% 4,000 53.0% expenses General debt Staff costs 1,000 provision 52.0% 2% 3,000 Specific debt 51.0% CTI
Slide 13: Summarised group balance sheet
Summarised group balance sheet June-18 June-17 Change KES millions KES millions % Assets Financial investments 91,541 71,853 27% Loans and advances to banks 17,558 15,571 13% Loans and advances to customers 136,477 117,945 16% Other assets 20,371 16,011 27% Property and equipment 2,271 2,326 (2%) In
Slide 14: Customer loans and advances
Customer loans and advances June 2018 Loans and advances by product 140,000 136,477 KES millions 135,000 Home loans 130,000 14% 125,000 14% Overdrafts 120,000 117,945 115,000 62% 10% Vehicle asset finance(VAF) 110,000 Term lending 105,000 Jun 2018 Jun 2017 Customer loans and advances grew by 16% y
Slide 15: Customer loans and advances: Non performing loans (NPLs)
Customer loans and advances: Non performing loans (NPLs) KES millions NPLs by business unit 9,000 35.0% 30.8% June 2018 June 2017 8,000 30.0% 7,000 25.2% 25.0% 6,000 Loan loss provision CIB PBB CIB PBB 46% 5,000 20.0% Discounted value 42% 58% 54% 4,000 15.0% of security 3,000 Coverage ratio 10.0% 2,
Slide 16: Customer deposits
Customer deposits KES millions Customer deposits grew by 28% year on year with core 180,000 167,306 accounts accounting for 85% of total deposits 160,000 140,000 130,263 Customer deposits by business unit 120,000 June 2018 June 2017 100,000 80,000 60,000 44% PBB CIB 40,000 56% 51% 49% 20,000 - Jun
Slide 17: Funding, liquidity and capital
Funding, liquidity and capital 120% 100% 20.0% 15% 17% 17.4% 5% 5% 18.0% 17.2% 80% 3% 2% 16.0% 15.4% 17% 14.7% 14.5% 20% 14.5% 60% 14.0% 12.0% 10.5% 10.5% 40% 60% 10.0% 56% 20% 8.0% 6.0% 0% Jun-18 Jun-17 4.0% Customer deposits Deposits with Banks 2.0% Borrowings Other liabilities 0.0% Equity Jun-18
Slide 18: Corporate and Investment Banking (CIB)
Corporate and Investment Banking (CIB) Anton Marais Executive, Corporate and Investment Banking
Slide 19: CIB summary performance
CIB summary performance June-2018 June-2017 Change Increase in net interest income as a result of KES millions KES millions % growth in the customer balance sheet Higher non interest revenue due to fees Net interest income 2,969 2,734 9 from increased trade finance volumes, key Non-interest reve
Slide 20: CIB 2018 strategic priorities
CIB 2018 strategic priorities We want to deliver value to We want to partner with our We aspire to be the our clients through our deep clients to unlock their undisputed financial services sector expertise by focusing dreams provider of choice on: Client centricity We want to do valuable things for
Slide 21: Personal Business Banking (PBB)
Personal Business Banking (PBB) Maurice Matumo Executive, Personal and Business Banking
Slide 22: PBB summary performance
PBB summary performance June-2018 June-2017 Change Strong balance sheet growth on our focus KES millions KES millions % segments driven by acquisition of new to bank Net interest income 2,639 2,279 16 customers Non-interest revenue 1,196 1,010 18 Increase in net interest income explained by Tota
Slide 23: PBB 2018 strategic priorities
PBB 2018 strategic priorities Leading with Business Banking • A collaborative approach aligned to CIB customer opportunities • Transactional accounts - primary Focus on non interest revenue generating • Payments and Collections activities • Trade Finance – including GM • Wealth – Insurance, Investme
Slide 24: Wealth
Wealth Adam Jones Executive, Wealth
Slide 25: Stanbic Insurance Agency summary performance
Stanbic Insurance Agency summary performance June-2018 June-2017 Change Revenue uplift due to: KES millions KES millions % Increased volumes from embedded Net interest income 5 3 67 products aligned to growth in the loan book Fees and commission 133 84 58 Improved revenue from stand alone and
Slide 26: Stanbic Insurance Agency 2018 strategic priorities
Stanbic Insurance Agency 2018 strategic priorities Increase penetration on the Bank’s customer base Deeper collaboration with Corporate and Investment Banking sectors Embedding insurance solutions to customers in personal markets and SME space Partnerships with specific brokers locally and i
Slide 27: SBG Securities (SBGS)
SBG Securities (SBGS) Bethuel Karanja Executive Director, SBG Securities
Slide 28: SBGS summary performance
SBGS summary performance June-2018 June-2017 Change SBG Securities posted revenues of KES 178m for KES millions KES millions % the half year ending 30th June 2018, indicating a 5% increase compared to the same period last year Brokerage commission 135 145 (6) This performance reflects: Other rev
Slide 29: SBGS 2018 strategic priorities
SBGS 2018 strategic priorities H1 2018 perspectives The Kenya equities market has improved year-on year, evidenced by growth in volumes and higher valuations, supported by a better macroeconomic and political context Although international investors have been net sellers year to date, the market
Slide 30: Q&A
Q&A