Nations Trust Bank PLC · CSELK:NTB.N0000
Nations Trust Bank — Investor Forum 2016
16 slides from Nations Trust Bank's conference presentation, August 2016
Slide 1: Stepping up to the Challenge
Stepping up to the Challenge Investor Forum August 2016
Slide 2: We help people and businesses achieve Today's goals and Tomorrow's aspirations
Investor Forum August 2016 We help people and businesses achieve Today’s goals and Tomorrow’s aspirations Our Competencies Our Reach Our Resources Our Values Sustainable and 93 Branches 2,700 passionate Trust growing returns 135 ATMs employees Agile Young and Dynamic Over 500,000 customers Assets of
Slide 3: Strong Credentials
Investor Forum August 2016 Strong Credentials Sustainable Returns Diversified Earnings Reaching Scale ROE % Loan Book by Product % Revenue by Customer Segment % Business Volumes th Bank Other Corporate row CASA ns g Industry Leasing SME Loa GR 17% FD A of C Consumer Loans Consumer Loans Cards Workin
Slide 4: You just get better.
Investor Forum August 2016 It never gets easier. You just get better. Investor Forum August 2016
Slide 5: Strategic Thrust
Investor Forum August 2016 Customer Centricity Digital Lean Transformation Data Analytics Strategic Thrust People & Talent Management
Slide 6: If it doesn't challenge you, it won't change you.
Investor Forum August 2016 If it doesn’t challenge you, it won’t change you. Investor Forum August 2016
Slide 7: External Dynamics
Investor Forum August 2016 External Dynamics Inflation Market Rates % } YoY inflation increased from 2.8% in December 2015 to 6.0% in AWLR AWFDR June 2016 Inflation Market Rates } AWFDR moved from 7.57% to 8.64% during first 6 months } Policy rates were revised up by 50bps in February Jan-15 Feb-15
Slide 8: 1H - Challenges
Investor Forum August 2016 1H - Challenges 66bps drop in NIMs CASA Growth % 1H 2016 } Gradual narrowing of NIMs seen over the last 12 months YoY as exposure to consumer moderates } Rapid increase in CoF } Re-pricing challenges impacting 30% of loan portfolio } CASA growth minimal in the first 6 mont
Slide 9: 1H - What Worked Well
Investor Forum August 2016 1H - What Worked Well Asset growth to drive NII Portfolio Growth 1H % } Loan book recorded a growth of 6% in the first 6 months Fee based income } Customer FX and Trade SME Consumer Leasing Corporate Other Managing large cost pools } Initiatives taken to rationalize expend
Slide 10: Practise like a champion
Investor Forum August 2016 Practise like a champion Investor Forum August 2016
Slide 11: Financial Highlights
Investor Forum August 2016 Financial Highlights Profit and Loss 1H 2015 1H 2016 Change KPIs 2016 Change over % previous period Revenue 6,165 6,295 2% Loans Growth 6% Net Interest Income 4,545 4,608 1% Deposits Growth 6% Non Fund Based ROE 16.5% 1,620 1,686 4% Income CAR 12.35% Operating Expenses 3,1
Slide 12: Volumes vs NIMs
Investor Forum August 2016 Volumes vs NIMs Net interest income recorded a marginal growth due to NIM compression Volume Yield Impact (Rs. Mn) NIM Movements Yield/Spread Movement Bank Loans & Advances Yield Impact Assets Liabilities Total Industry Cost of Liabilities Yield Yield 258 -869 -611 Spread
Slide 13: Enhancing Fee Based Income
Investor Forum August 2016 Enhancing Fee Based Income Core fee growth of 13% narrowed to 4% due to impact on FX funding SWAPS Focus on generating trade and customer FX via Core NFB Income mining trade hubs through concerted effort Card Fees Trade Fees Other Income } Branches and product specialists
Slide 14: Operational Efficiencies
Investor Forum August 2016 Operational Efficiencies Disproportionately higher investments resulted in expenses growing rapidly over previous period Opex base recorded a growth of 13% Growth in Opex % Opex Composition Opex Composition } Higher share of investments made for the future resulting in und
Slide 15: Managing Risks
Investor Forum August 2016 Managing Risks Core impairment recorded a drop of 7% Impairment P/L Charge Drop in individual impairment mainly due to SME Pawning Credit Card one-off provision made in previous period Consumer Leasing Corporate Factoring Improved collective impairment in Leasing One-off C
Slide 16: Thank You
Investor Forum August 2016 Thank You