First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — FY 2023 & Q1 2024 Earnings Presentation
31 slides from First Holdco's earnings presentation, May 2024
Slide 1: FY 2023 & Q1 2024 Results Presentation
FY 2023 & Q1 2024 Results Presentation May 2024
Slide 2: Disclaimer
DISCLAIMER This presentation is based on FBN Holdings Plc’s (‘FBNH’ or ‘FBNHoldings’ or the ‘Group’) audited financial statements for the year ended December 31, 2023, and unaudited financial statements for the period ended March 31, 2024. The Group’s Financial statements represent FBN Holdings Plc
Slide 3: Key Highlights
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Slide 4: Financial and operational highlights
Key Highlights Financial and operational highlights Gross earnings + PBT up Improvement in cost-to- NPL ratio <5% despite Naira 95.7% and 127.3% y-o-y income ratio (down to 49.1% devaluation and challenging respectively underpinned by strong from 61.7%) demonstrates the macroeconomic environment bus
Slide 5: Largely on track to meet our strategic priorities and 2024 financial targets
Key Highlights Largely on track to meet our strategic priorities and 2024 financial targets Enhance Revenue and Profitability 2024 financial targets By focusing on technology and innovation • Monetize analytics & data • Optimise business development opportunities ROE > 20% • Drive new customer acqui
Slide 6: Financial Review
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Slide 7: FY 2023: Solid performance driven by growth across core banking activities
Financial Review FY 2023: Solid performance driven by growth across core banking activities and increased transaction volume Gross Earnings ₦’billion Net-Interest Income ₦’billion Non-Interest Income ₦’billion Operating Income ₦’billion Impairment Charge ₦’billion +95.7% +51.1% +153.6% +91.5% +231.4
Slide 8: Q1 2024: Sustained positive performance through the first quarter of 2024
Financial Review Q1 2024: Sustained positive performance through the first quarter of 2024 Gross Earnings ₦’billion Net-Interest Income ₦’billion Non-Interest Income ₦’billion Operating Income ₦’billion Impairment Charge ₦’billion +181.4% +104.4% +267.3% +168.3% +153.9% 730.3 111.8 228.6 42.9 265.6
Slide 9: Improving fundamentals as we navigate a disrupted operating environment
Financial Review Improving fundamentals as we navigate a disrupted operating environment Post Tax ROaE (%) Net Interest Margin (%) Cost of Funds (%) NPL Ratio % NPL Coverage (%) 45.5 7.1 4.7 91.7 88.2 5.9 4.3 4.0 80.5 5.8 6.1 22.6 3.7 14.5 2.3 FY 22 FY 23 Q1 24 FY 22 FY 23 Q1 24 FY 22 FY 23 Q1 24 FY
Slide 10: Revenue growth underpinned by improved transaction-led offering and the rate environment
Financial Review Revenue growth underpinned by improved transaction-led offering and the rate environment Gross Earnings ₦’billion Group Revenue by Segment % Asset Management, (2) 3.3 Insurance brokerage, 0.1 Public Sector, 5.1 Trusteeship, 0.7 1595.3 Commercial Banking, 6.8 815.2 730.3 259.5 FY 22
Slide 11: Robust non-interest income revenues on improved trade and commission fees
Financial Review Robust non-interest income revenues on improved trade and commission fees and positive effects from the currency devaluation Non-interest Income Breakdown Net (₦’bn) Fees & Commission Breakdown Gross (₦’bn) • Non-interest income up by 153.6% y-o-y on the back of an increase in tradi
Slide 12: Diversified earnings profile – 40.5% from outside FirstBank Nigeria
Financial Review Diversified earnings profile – 40.5% from outside FirstBank Nigeria Loans Deposit PBT International 17.2% 25.7% 24.5% subsidiaries(1) Commercial Banking Group 98.3% 98.0% 86.2% Subsidiaries(2) Non-Commercial Banking 1.7% 2.0% 13.8% Subsidiaries(3) (1) International Subsidiaries incl
Slide 13: Enhancing digital adoption to strengthen non-interest income
Financial Review Enhancing digital adoption to strengthen non-interest income and increase capital light earnings Electronic Banking Revenue ₦’billion CAGR +6.7% 66.3 56.8 55.1 48.0 48.7 35.7% 26.7% 29.9% 23.5% 23.7% 15.9% 15.8% 15.1% 18.8% 24.2% 10.6% 24.9% 17.4% 15.9% 30.6% 14.7% 10.2% 10.1% 11.7%
Slide 14: Mobile & Internet
Financial Review Scaling up revenue growth through innovative digital solutions Number of Subscribers (Million) Volume of transactions processed (Million) Value of transactions processed (₦’billion) CAGR +11.8% CAGR +12.2% CAGR +15.8% +6.9% +28.9% +18.5% 15.4 1,420 5,346 13.3 14.4 1,189 4,451 4,511
Slide 15: Extending financial inclusion drive through Agency banking (FirstMonie)
Financial Review Extending financial inclusion drive through Agency banking (FirstMonie) • FirstMonie is FirstBank’s agent banking business, targeted at Geographic Dispersion of FirstMonie Agents as at FY 2023 driving financial inclusion and gender empowerment • Market penetration: unbanked/underban
Slide 16: Elevated Opex resulting from high inflation, currency devaluation and regulatory costs
Financial Review Elevated Opex resulting from high inflation, currency devaluation and increased regulatory costs; stronger income growth improve CIR Improvement in CIR between FY 2019 & 2023 OPEX Drivers (₦’billion) 3.9 -12.6% FY 23 179.1 70.8 43.3 22.7 21.5 143.1 79.8 564.3 FY 22 117.4 43.0 28.1 1
Slide 17: Low-cost deposit base increases
Financial Review Low-cost deposit base increases • FY 23 customer deposits increased by 49.7% to Customer Deposits Mix (₦’billion) ₦10.7 trillion (FY 22: ₦7.1 trillion) • Q1 24 customer deposits rose by 24.4% to Q1 24 3,177 3,443 2,952 3,695 13,267 ₦13.3 trillion (FY 23: ₦10.7 trillion) • Improved l
Slide 18: Strengthened risk management architecture & practices support resilient quality loan books
Financial Review Strengthened risk management architecture & practices support resilient quality loan books FirstBank Nigeria Gross Loan per Sector (₦’trillion) 7.1 Q1 24 20.1% 21.2% 7.6% 12.8% 4.5% 4.1% 1.3% 6.0% 22.4% 7.1 7.1 5.4 FY 23 21.3% 18.6% 9.2% 11.5% 6.3% 3.8% 1.5% 6.7% 21.2% 5.4 5.4 FY 22
Slide 19: Sustained improvement in asset quality despite a volatile operating environment
Financial Review Sustained improvement in asset quality despite a volatile operating environment FirstBank Nigeria NPL per Sector Adequate NPL Coverage maintained 1.3% 0.2% 1.8% Q1 24 2.6% 5.8% 17.1% 4.5% 1.6% 0.9% 1.9% 0.3% 1.9% 91.65 86.60 88.19 FY 23 3.0% 5.5% 15.7% 4.8% 1.1% 62.20 4.3% 47.50 48.
Slide 20: Disciplined capital management practices strengthen balance sheet
Financial Review Disciplined capital management practices strengthen balance sheet; imminent capital raising exercise to further boost market positioning • Strong earnings capacity from internal operations FirstBank Nigeria CAR (%) continue to provide a solid platform for capital accretion 16.8 17.9
Slide 21: ESG
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Slide 22: Responsible lending, inclusivity & climate action remain key tenets of our ESG approach
Financial Review Responsible lending, inclusivity & climate action remain key tenets of our ESG approach Sustainable Finance Development Climate Action • Over N20 trillion transactions screened for ESG risks in • 50,000 trees in 2024 Driving sustainable finance and investments 3 years • 17 locations
Slide 23: Committed to corporate governance & ESG thought leadership
Financial Review Committed to corporate governance & ESG thought leadership Memberships & Partnerships Awards & Recognitions ESG Governance Co-Chair Labour Committee FirstBank Sustainability Governance Structure • Digital Banker Africa: • United Nations Global Compact Local Network Best Financial In
Slide 24: Appendix
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Slide 25: FY'23 Commercial Banking, Merchant Banking and Asset Management Group (FBNQuest)
Appendix FY’23 Commercial Banking, Merchant Banking and Asset Management Group (FBNQuest) Commercial Banking Group Merchant Banking and Asset Management Group (FBNQuest) Key financial highlights & performance ratios Key financial highlights & performance ratios Income statement Statement of Financia
Slide 26: Q1'24 Commercial Banking, Merchant Banking and Asset Management Group (FBNQuest)
Appendix Q1’24 Commercial Banking, Merchant Banking and Asset Management Group (FBNQuest) Commercial Banking Group Merchant Banking and Asset Management Group (FBNQuest) Key financial highlights & performance ratios Key financial highlights & performance ratios Income statement Statement of Financia
Slide 27: Currency devaluation and surging inflation shaped the operating environment in 2023
Appendix Currency devaluation and surging inflation shaped the operating environment in 2023 Heightened inflationary pressures Marginal increase in oil price and external reserves in the first quarter 120 .0 2.5 100 .0 2.0 33.20 80.0 28.92 1.5 26.72 1.4 1.2 1.3 1.3 22.79 1.2 1.2 60.0 20.77 21.34 22.
Slide 28: Key regulatory and policy interventions
Appendix Key regulatory and policy interventions • Removal of fuel subsidy. • CBN directed all Financial Institutions to suspend the charging of • CBN increased MPR by 50bps to 18.5%. 2% and 3% processing charges on all Individual and Corporate • CBN abolishes segmentation in the Foreign account cas
Slide 29: Non-financial highlights
Appendix Non-financial highlights 41.7 8.8k Million A+ Positive Customer Accounts* 15,637,254 B- Stable Subscribers 740 Employees B- Stable FirstBank Branches 17,268 59% 41% P.O.S 3,117 6.6m First Automated 13.18m Mobile Teller Machines ATM Cards Subscribers *Including wallets 29
Slide 30: Definitions
Appendix Definitions ₋ Cost-to-income ratio computed as operating expenses divided by operating income ₋ Cost of risk computed as annualised credit impairment charges divided by the average opening and closing gross loans balances ₋ Net-interest margin computed as annualised net interest income divi
Slide 31: 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 31
FBN Holdings — FY 2023 & Q1 2024 Earnings Presentation on 6ix