First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — 9M 2023 Earnings Presentation
25 slides from First Holdco's earnings presentation, Oct 30, 2023
Slide 1: 9M 2023 Results Presentation
9M 2023 Results Presentation 30 10 2023
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 2023. The Group’s Financial statements represent FBN Holdings Plc and its subsidiaries. FBNHoldings has obtained some information from
Slide 3: Key Highlights
FBNHoldings Defining Frontiers © @ Key Highlights
Slide 4: 9M 2023 key highlights
Key Highlights 9M 2023 key highlights Profitability Efficiency Asset Quality 1 Gross earnings up ~80% y-o-y on the back of strong net income and growth across all our businesses 2 Rigorous cost management approach translates into a contained opex growth despite the inflationary backdrop and signific
Slide 5: Strong financial performance amidst a challenging economic environment
Key Highlights Strong financial performance amidst a challenging economic environment Gross Earnings ₦’billion Net-Interest Income ₦’billion Non-Interest Income ₦’billion Operating Income ₦’billion Impairment Charge ₦’billion +79.8% +51.4% +108.2% +73.3% +124.4% 985.6 377.7 326.9 82.4 704.6 547.2 24
Slide 6: Sustainable shareholder value creation and strengthening business resilience
Key Highlights Sustainable shareholder value creation and strengthening business resilience Post Tax ROaE (%) Net Interest Margin (%) Cost of Funds (%) NPL Ratio (%) NPL Coverage (%) 26.6 6.2 4.3 4.6 86.6 85.4 5.4 3.4 13.7 2.1 9M 22 9M 23 9M 22 9M 23 9M 22 9M 23 FY 22 9M 23 FY 22 9M 23 Post Tax ROaA
Slide 7: Delivering on our strategic priorities
Key Highlights Delivering on our strategic priorities Enhance Revenue and Strengthen Value Optimise Profitability Proposition Operational Efficiency Technological Enhance automation Utilise brand strength advancement and and utilise scale and customer-centric innovation benefits approach focus > 482
Slide 8: A unique investment case supported by strong brand recognition and diversified revenues
Key Highlights A unique investment case supported by strong brand recognition, diversified revenues base and rigorous risk management and governance practices Diversified Portfolio/ Earnings Customer-centric Approach • Diversified portfolio of businesses, • Committed to delivering exceptional to mit
Slide 9: Financial Review
FBNHoldings By Defining Frontiers Financial Review
Slide 10: Strong revenue growth driven by effective management of interest rate dynamics
Financial Review Strong revenue growth driven by effective management of interest rate dynamics Gross Earnings (₦’billion) & Mix (%) Interest Income Mix 64.4% 33.1% 985.6 70.5% 29.5% 663.8 67.7% 28.7% 547.2 78% 22.0% 370.4 Interest Income Non-interest income Loans and Advances Investment Securities
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 • Fees & commission recorded a +29.4% increase y- Non-interest Income Breakdown Net (₦’bn) o-y in 9M 23 (9M 22: +6.8%) • Non-interest income grew by 108.2% y-
Slide 12: Banker to the bottom of the pyramid (FirstMonie)
Financial Review Banker to the bottom of the pyramid (FirstMonie) • FirstMonie is FirstBank’s agent banking business, targeted at driving Geographic Dispersion of FirstMonie Agents as at September 2023 financial inclusion and gender empowerment • Taking banking to the unbanked / underbanked • Presen
Slide 13: Mobile & Internet
Financial Review Accelerating financial inclusion using USSD; Monetising “anywhere banking”(mobile & internet) using smart devices: Further revenue growth projected for FY 23 Number of subscribers (million) Volume (Count) of Transactions Processed (million) Value of Transactions Processed (₦’billion
Slide 14: Cost base reflects high inflationary environment
Financial Review Cost base reflects high inflationary environment • 9M 23 opex +33.3% y-o-y mostly driven by higher staff, regulatory and OPEX Drivers (₦’billion) maintenance costs • CIR further improved to 50.0% in 9M 23 (9M 22: 65.0%) as operating income grew faster than opex 11.1 • Rigorous cost
Slide 15: Solid and increased deposit base driven by the strong franchise
Financial Review Solid and increased deposit base driven by the strong franchise • 9M 23 customer deposits increased by 29.9% to ₦9.3 trillion (FY 22: ₦7.1 trillion) • Excellent deposits (low-cost) mobilisation at optimum price support NIM improvement • Low-cost deposits at FirstBank Nigeria remain
Slide 16: Diversified and balanced loan portfolio
Financial Review Diversified and balanced loan portfolio FirstBank Nigeria Gross Loan per Sector (₦’trillion) 9M 23 19.9% 17.8% 9.3% 11.1% 7.0% 4.2% 1.8% 6.5% 22.3% 4.6 FY 22 19.5% 16.6% 9.2% 9.2% 8.2% 4.4% 2.4% 5.7% 24.8% 3.4 FY 21 18.2% 15.8% 10.3% 7.0% 9.5% 5.9% 4.1% 4.4% 24.8% 2.6 Manufacturing
Slide 17: Sound asset quality despite the challenging operating environment
Financial Review Sound asset quality despite the challenging operating environment FirstBank Nigeria NPL per Sector 9M 23 11.9% 12.6% 6.0% 5.3% 13.7% 4.3% 3.0% 1.4% 1.1% FY 22 44.4% 17.0% 9.5% 8.2% 6.0% 4.2% 2.2% 1.4% 0.2% (1) Real Estate Agriculture General Commerce Oil & Gas Upstream Others Oil &
Slide 18: Disciplined capital management; New T1 issuance
Financial Review Disciplined capital management as strong earnings growth underpin organic capital accretion; New T1 issuance to further support & propel Group performance T1 Capital raise - Right Issue FirstBank Nigeria CAR (%) Rationale 17.4 • Support business growth 16.8 16.0 Reg. threshold: • Ba
Slide 19: Appendix
FBNHoldings By Defining Frontiers Appendix
Slide 20: Dynamic operating environment
Appendix Dynamic operating environment Increasing inflationary environment Decline in external reserve despite increased oil price and crude prod. rate 120 .0 2.5 26.72 100 .0 2.0 22.04 22.79 80.0 20.77 21.34 1.6 1.5 1.5 1.4 1.5 18.6 1.3 16.63 60.0 1.2 1.2 15.63 15.92 40.5 39.5 1.1 39.2 38.3 34.2 36
Slide 21: Key regulatory and policy interventions
Appendix Key regulatory and policy interventions • Tenure of Executive Management and Non-Executive Directors of DMBs revised Q1 2023 • CBN increased MPR to 18%, 150bps higher than the previous quarter • CBN issued two regulations regarding the engagements of Super Agents and Guidelines for Agent Ba
Slide 22: Commercial Banking, Merchant Banking and Asset Management Group (FBNQuest)
Appendix 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 Financial Posi
Slide 23: Non-financial highlights
Appendix Non-financial highlights1 8.6k 41.3 3,117 Million Automated Customer Teller Accounts* Machines 15,186,873 Employees Subscribers 6.3m 739 60% 40% First 12.7m 24,295 Mobile FirstBank Branches Subscribers ATM Cards P.O.S 1 Relate to FirstBank other than employees which is FBNHoldings (Group) e
Slide 24: 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 25: 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 25