First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — H1 2020 Earnings Presentation
29 slides from First Holdco's earnings presentation, 2020
Slide 1: Forging Ahead: Investor & Analyst Presentation
FORGING AHEAD Investor & Analyst Presentation For the six months ended 30 June 2020
Slide 2: Disclaimer
DISCLAIMER This presentation is based on FBN Holdings Plc’s (‘FBNH’ or ‘FBNHoldings’ or the ‘Group’) unaudited financial statements for the six months ended 30 June, 2020. The Group’s Financial statements represent FBN Holdings Plc and its subsidiaries. FBNHoldings has obtained some information from
Slide 3: Outline
Outline 4 Key Highlights 9 H1 2020 Performance 20 Outlook 22 Appendix
Slide 4: Key Highlights
FBNHoldings Key Highlights
Slide 5: Key highlights for the period
Key highlights for the period • Robust financial • Gross earnings increased 5.8% to N296.4 billion (H119: N280.3 billion) performance in a • 46.8% growth in non-interest income, driven by fees and commission and gains on investment securities volatile environment • Profit for the year up 56.3% y-o-y
Slide 6: Growth in earnings and profitability whilst strengthening the balance sheet
Key highlights Growth in earnings and profitability whilst also strengthening the balance sheet Growth, y-o-y Income Statement Snapshot Statement of Financial Position Gross Earnings Operating Income Total Assets H120: ₦296.4 billion 5.8% H120: ₦211.4 billion 7.7% H120: ₦7,130.2 billion 14.9% H119:
Slide 7: Increasing shareholder return, improvement in NPLs and enhanced capitalization
Key highlights Demonstrated increasing shareholder return, improvement in NPLs and enhanced capitalization Key Income Statement Ratios (%) Key Balance Sheet Ratios (%) Post Tax ROaE Post Tax ROaA Non-Performing Loans (NPL) 14.5% 1.5% 9.9% 11.6% 1.1% 8.8% H1 19 H1 20 H1 19 H1 20 FY 19 H1 20 Net Inter
Slide 8: Robust financial performance in an unprecedented operating environment
Delivered a robust financial performance in an unprecedented operating environment demonstrating resilience & strong execution capabilities Organisational Resilience Delivered earnings growth Strengthened balance Reinforced leadership in through significant sheet in an uncertain e-banking with stron
Slide 9: H1 2020 Performance
FBNHoldings H1 2020 Performance
Slide 10: Earnings growth underpinned by significant increase in non-interest income
H1 2020 performance Despite the challenging operating environment, earnings growth was underpinned by significant increase in non-interest income • Gross earnings increased GROSS EARNINGS BREAKDOWN 5.8% y-o-y, (H1 2019 (H1 2019 ₦280.3bn; H1 2020: ₦296.4bn) ₦280.3bn; H1 2020: ₦296.4bn) 70.0% • Major
Slide 11: Significant increase in non-interest income despite regulated fees on E-business
H1 2020 Performance Significant increase in non-interest income despite the impact of regulated fees on the E-business segment • Non-interest income NON-INTEREST INCOME BREAKDOWN (NET) sustained strong growth; (H1 2019 ₦54.6bn; H1 2020: ₦80.1bn) grew 46.8% y-o-y as at H12020 • Trading income in the
Slide 12: Strict focus on cost containment despite pandemic impact
H1 2020 performance Strict focus on cost containment despite the pandemic impact, increased regulatory charges and currency devaluation • Cost has been reined in MAIN OPEX DRIVERS and opex is in line with (H1 2019: ₦137.9bn; H1 2020: ₦139.2bn) prior year despite currency devaluation and rising infla
Slide 13: Reaffirmed dominant leadership in digital solutions
H1 2020 performance Reaffirmed dominant leadership in digital solutions despite unfavourable regulatory impact • We continue to see GROWING REVENUE FROM ELECTRONIC USSD BANKING SCHEME MOBILE BANKING SCHEME BANKING CHANNELS (₦’ MILLION) TRANSACTION VOLUME (MILLION) TRANSACTION VOLUME (MILLION) signif
Slide 14: Monetizing our leadership in Agent banking
Key highlights Monetizing our undisputed leadership in Agent banking with a particular boost witnessed during the pandemic • Strong business mobilization; processed ₦5.71trillion in value 59k+ (1) from inception to date CUMMLATIVE AGENTS TRANSACTION VOLUME Agents FROM INCEPTION TO DATE (‘Million) •
Slide 15: Funding remains strong and diversified
H1 2020 performance Funding remains strong and diversified powered by the strength of our retail franchise • Strong funding base; FUNDING BY TYPE | FBNHOLDINGS DEPOSITS BY TYPE | FBNHOLDINGS (FY 2019: ₦6.2tr; H1 2020: ₦7.1tr) (FY 2019: ₦4.0tr; H1 2020: ₦4.4tr) customer deposits up 8.8% y-o-y in H1 2
Slide 16: Diversified loan portfolio across sectors
H1 2020 Performance Diversified loan portfolio across sectors with continued focus on adherence to stringent risk framework • Loan book (net) increased FIRSTBANK (NIGERIA) GROSS LOANS BY SECTOR (FY 2019: ₦1,619bn; H1 2020: ₦1,759bn) by 7.7% in H1 2020 • Rebalanced the loan portfolio by extending FY
Slide 17: Improving asset quality profile with vintage NPL below 1%
H1 2020 performance Improving asset quality profile with nominal vintage NPL maintained below 1% • Sustained improvement NPL RATIO COST OF RISK NPL COVERAGE in NPL ratio from 9.9% in FY 2019 to 8.8% in H1 2020 • Increase in impairment 9.9% 49.2% 8.8% 3.1% charge (38.6%) driven by 2.5% 47.5% translat
Slide 18: Portfolio realignment aimed at minimizing vulnerability
H1 2020 performance Portfolio realignment aimed at minimizing vulnerability • Given the low interest LOANS AND ADVANCES BY MATURITY |FIRSTBANK (NIGERIA) (FY 2019: ₦1,619bn; H1 2020: ₦1,759bn) rate environment, emphasis is on growing short tenured loans 47.6% 50.4% • Growth in FCY loans due to transl
Slide 19: Strong capital position provides a solid platform
H1 2020 Performance Strong capital position provides a solid platform to support emerging business opportunities • FBNHoldings injected Tier I TOTAL RWA (₦'bn)| FIRSTBANK (NIGERIA) CAR| FIRSTBANK (NIGERIA) capital to FirstBank; boost 3,50 0 TIER 1 CAPITAL AND CAR| FIRSTBANK (NIGERIA) CAR to 16.5% 3,
Slide 20: Outlook
FBNHoldings
Slide 21: Looking ahead to FY 2020 – Propel performance
Key Highlights Looking ahead to FY 2020 – Propel performance for enhanced profitability Earnings Accretive Capacity Solid Cost Deepen Profile Maintain our Utilise our scale diversification of distinctive and unique revenue sources advantage in positioning as a Strong Risk through Management digital
Slide 22: Appendix
FBNHoldings Appendix
Slide 23: Commercial Banking Group
Appendix COMMERCIAL BANKING GROUP Business growth, with continuously improving operating performance and quality balance sheet, even in an increasingly tough operating environment • Upward trajectory in share of KEY FINANCIAL HIGHLIGHTS non-interest income Income statement Statement of Financial Pos
Slide 24: Merchant Banking and Asset Management Group
Appendix MERCHANT BANKING AND ASSET MANAGEMENT GROUP Strong performance amidst macro-economic headwinds driven primarily by fixed income trading, the annuity businesses (Asset Management & Trustees) and corporate banking • Strong H1 2020 performance KEY FINANCIAL HIGHLIGHTS resulted in a 95.0% growt
Slide 25: Nigeria's operating environment remained challenging
Appendix Nigeria’s operating environment remained challenging GROSS DOMESTIC PRODUCT RATE TAPERS AMIDST RISING INFLATION REBOUND IN OIL PRICES BUT CRUDE OIL PRODUCTION CAPACITY DECREASES 1.7 1.7 1.8 1.7 1.9 1.9 1.9 1.8 1.8 1.9 15.4 1.5 13.3 47.79 12.0 12.26 46.21 44.31 43.12 44.42 45.07 11.2 11.3 11
Slide 26: Key macro economic and regulatory developments
Appendix Key macro economic and regulatory developments The CBN grants Deposit Money Banks leave to consider The Monetary Policy Committee Q1 2020 GDP grew by 1.9%; the The National Assembly approved restructuring of tenor and loan increased the cash reserve ratio from slowest growth in 6 quarters.
Slide 27: Global Footprint
Appendix Global Footprint Nigeria France UK Ghana Guinea Senegal Name Name Name Name Name Name FBN Holdings Plc. FBNBank UK Ltd. FBNBank UK Ltd. FBNBank Ghana FBNBank Guinea FBNBank Senegal Type Type Type Type Type Type Licensed financial holding Bank branch Licensed bank Licensed Bank Licensed Bank
Slide 28: 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 29: Contact Details
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