I&m Group Plc · NSEKE:IMH
I&m — HY 2020 Earnings Presentation
32 slides from I&m's earnings presentation, Sep 11, 2020
Slide 1: Investor Presentation HY 2020
Investor Presentation HY 2020 11th September 2020
Slide 2: Table of Contents
Table of Contents Part 1:Font Economic Size: 20 |Overview Font Feature: Bold Part 2:Group Consolidated Performance: HY 2020 Font Size: 16 | Font Feature: Bold Part 3: Subsidiary Performance: HY 2020 Font Size: 14/12 | Font Feature: No Bold Font Size: 10 | Font Feature: No Bold Investor Presentation
Slide 3: Part 1: Economic Overview
Font Size: 20 | Font Feature: Bold Part 1: Economic Overview Font Size: 16 | Font Feature: Bold Font Size: 14/12 | Font Feature: No Bold Font Size: 10 | Font Feature: No Bold Investor Presentation HY 2020
Slide 4: Economic Overview
Economic Overview Global Conditions 1COVID-19 triggered the deepest global recession in decades with lasting impact Pandemic Impact to labor productivity and potential 3Commercial banks have continued to output extend relief to borrowers as a result of the economic turmoil arising from Sub Saharan A
Slide 5: Part 2: Group Consolidated Performance: HY 2020
Font Size: 20 | Font Feature: Bold Part 2: Group Consolidated Performance: HY 2020 Font Size: 16 | Font Feature: Bold Font Size: 14/12 | Font Feature: No Bold Font Size: 10 | Font Feature: No Bold Investor Presentation HY 2020
Slide 6: I&M Holdings PLC – Income Statement Highlights
I&M Holdings PLC – Income Statement Highlights Jun 20 vs Dec-19 Jun-20 Jun-19 Particulars Jun 19 Kshs Mn Kshs Mn Y-Y % ▲ Net Interest Income 15,510 6,919 7,018 -1% Non Funded Income 8,285 4,213 4,536 -7% Total Operating Income 23,795 11,132 11,554 -4% Operating Expenses 9,461 5,024 4,629 9% Profit b
Slide 7: I&M Holdings PLC – Balance Sheet Highlights
I&M Holdings PLC – Balance Sheet Highlights Dec-19 Jun-20 Jun-19 20 vs 19 Particulars Kshs Mn Kshs Mn Y-Y % ▲ Cash & Bank Balances 15,386 19,068 20,142 -5% Investments & Placements 97,587 107,484 99,481 8% Loans & Advances (net) 175,329 184,565 172,164 7% Other Assets 26,989 29,523 25,267 17% Total
Slide 8: I&M Holdings PLC – Ratio Analysis
I&M Holdings PLC – Ratio Analysis 2019 Jun-19 Jun-20 Liquidity* 46.9% 47.9% 48.6% Cost/Income Ratio 39% 40% 45% Net NPA 4.6% 4.9% 4.1% Loan to Deposit Ratio 76% 73% 73% Return on Equity 18% 16% 11% Return on Assets 3.4% 2.9% 2.1% Capital Adequacy Ratio* 21% 18% 21% *reflecting anchor Bank ratios – I
Slide 9: I&M Holdings PLC – Subsidiary Contribution
I&M Holdings PLC – Subsidiary Contribution CONTRIBUTION TO PBT % CONTRIBUTION TO % CONTRIBUTION TO TOTAL KSHS ‘BN' SHAREHOLDERS' FUNDS ASSETS 4.6 78% 63% 22% 0.4 0.1 9% 8% 6% 8% 6% (0.6) Kenya Rwanda Tanzania Mauritius Kenya Rwanda Tanzania Mauritius Kenya Rwanda Tanzania Mauritius 5
Slide 10: Sectorial Distribution of Loans & Advances as at June 2020
Sectorial Distribution of Loans & Advances as at June 2020 25% 23% 19% 10% 7% 5% 4% 3% 1% 2% 1% 0% Tourism, Transport & Building & Energy and Financial Manufacturi Mining & Personal/Ho Government Agriculture Real Estate Restaurants Trade Communicati Construction Water Services ng Quarrying usehold &
Slide 11: Distribution of Restructured Loans & Advances
Distribution of Restructured Loans & Advances Segmentation Sectorial 43% 1% 3% 21% 21% 15% 11% 6% 3% 75% 0.2% 0.2% 0.1% CORPORATE BANKING BUSINESS BANKING PREMIUM BANKING PERSONAL BANKING The distribution comprises the 3 banking subsidiaries 7
Slide 12: Deposit Mix
Deposit Mix Currency Mix June 2020 As businesses Deposit Mix contract due to the pandemic 30% there has been less investment, 66% 70% with businesses opting to hold 70% funds in higher yielding deposits 34% 30% LCY FCY Jun-2019 Jun-2020 Low Cost High Cost The deposit mix comprises the 3 banking subs
Slide 13: NFI Fee/Cost vs Fee/Income
NFI [Kshs Mn] Fee/Cost vs Fee/Income -7% Fee/Cost Fee/Income 4,536 4,213 98% 90% 88% 891 84% 959 +8% Other income includes; 1. Net income on 1,290 financial assets at fair value 942 -27% through profit or loss 39% 38% (FVTPL), 33% 35% 2. Rental income 1,227 1,100 -10% 3. income from sale of property
Slide 14: Consolidated Loans & Advance and NPLs
Consolidated Loans & Advance and NPLs Gross NPLs Interest on Advances Coverage Ratio -9% +5% 24,399 55% 22,106 10,766 48% 10,250 Jun-19 Jun-20 Jun-19 Jun-20 Loan Loss Provisions Cost of Risk 0.62% Jun-19 0.58% Jun-20 -7% 1,109 Gross NPA 13% 11% 1,031 Net NPA 5% 4% Jun-19 Jun-20 Jun-19 Jun-20 10
Slide 15: Trend Analysis
Font Size: 20 | Font Feature: Bold Trend Analysis Font Size: 16 | Font Feature: Bold Font Size: 14/12 | Font Feature: No Bold Font Size: 10 | Font Feature: No Bold Investor Presentation HY 2020
Slide 16: Performance Trend Analysis
Performance Trend Analysis Total Assets (Kshs Bn) Deposits (Kshs Bn) +9% +8% +6% +8% 289 315 317 341 230 237 252 213 2018 2019 Jun-19 Jun-20 2018 2019 Jun-19 Jun-20 Loans (Kshs Bn) +8% PBT (Kshs Bn) +5% +27% 175 172 185 14.6 167 11.5 -27% 6.2 4.5 2018 2019 Jun-19 Jun-20 2018 2019 Jun-19 Jun-20 11
Slide 17: Value to Shareholders
Value to Shareholders Return on Equity 3.4% Return on Assets 2.9% 17% 18% 2.9% 16% 11% 2.1% 2018 2019 Jun-19 Jun-20 2018 2019 Jun-19 Jun-20 12
Slide 18: Group Highlights: FY 2020
Group Highlights: FY 2020 Business Focus – Post Covid-19 1 2 3 Rethinking the organization – Recovering Revenue – by Regional Expansion – I&M Holdings including driving culture change and protecting revenue from existing has signed a Sale & Purchase building on agility to ensure customers and se
Slide 19: Group Highlights: FY 2020
Group Highlights: FY 2020 Expansion of Digital Value Proposition Card Management System Technology Operationalization of an End-to-end solution on Leveraging technology Cards for Issuing and Acquiring of Debit, Credit, and digital innovations Prepaid and Multi-Currency Prepaid card including focused
Slide 20: Market Driven Solutions: FY 2020
Market Driven Solutions: FY 2020 Small World Money Transfer service Allows both customers and non-customers to send money to their loved ones or business partners in Kenya through Small World agents abroad. I&M WebPay Divert An e-commerce solution that allows businesses to accept payments from their
Slide 21: Part 3: Subsidiary Performance
Font Size: 20 | Font Feature: Bold Part 3: Subsidiary Performance Font Size: 16 | Font Feature: Bold Font Size: 14/12 | Font Feature: No Bold Font Size: 10 | Font Feature: No Bold Investor Presentation HY 2020
Slide 22: Kenyan Banking Sector Overview & 2020 Highlights
Kenyan Banking Sector Overview & 2020 Highlights GDP Policy Measure on Impact of Increase in NPLs Pandemic Decline of asset quality GDP growth in Kenya is estimated • Reduction of the Cash is noted due to effects to contract for the Reserve Ratio (CRR) to 4.25 from the pandemic as first time in almo
Slide 23: I&M Bank Ltd, Kenya – Financial highlights
I&M Bank Ltd, Kenya – Financial highlights Dec 2019 Deposits (Kshs Bn) Highlights Vs +6% +6% Loans (Kshs Bn) June 2020 Vs June 2019 Dec 2018 Reported PBT 137.3 146.1 201.8 214.1 2019: 4.9bn 2020: 4.5bn Net Revenue 2019: 9.0bn 2020: 8.6bn Cost/Income 2019: 35% 2020: 35% Jun-19 Jun-20 Jun-19 Jun-20 Fe
Slide 24: Economic Review - Tanzania
Economic Review - Tanzania GDP Economic Outlook GDP is seen • Annual growth fell to an over expanding 6.0% two-year low of 5.7% in the first Covid-19 is set to quarter (Q4 2019: +6.2%) due to curb growth this year, Covid-19; nonetheless, the although the economy remained relatively economy should st
Slide 25: I&M Bank (T) Ltd, Tanzania – Financial highlights
I&M Bank (T) Ltd, Tanzania– Financial highlights Deposits (Kshs Bn) Highlights +2% +8% Loans (Kshs Bn) June 2020 Vs June 2019 Reported PBT 15.1 15.4 13.9 15.1 2019: 0.17bn 2020: 0.16bn Net Revenue 2019: 0.73bn 2020: 0.75bn Cost/Income 2019: 65% 2020: 70% Jun-19 Jun-20 Jun-19 Jun-20 Fee/Income 2019:
Slide 26: Economic Review - Mauritius
Economic Review - Mauritius GDP Banking Sector Mauritian economy is High exposure to troubled expected to contract by 6.8% domestic sectors such as in 2020, as the tourism tourism, construction and sector ground to a halt owing real estate is expected to to the coronavirus pandemic. lead to an incre
Slide 27: Bank One, Mauritius – Financial highlights
Bank One, Mauritius– Financial highlights Deposits (Kshs Bn) Highlights +38% Loans (Kshs Bn) June 2020 Vs June 2019 Reported PBT +2% 145.6 2019: 0.8bn 2020: -1.3bn 67.6 68.9 105.2 Net Revenue 2019: 2.1bn 2020: 2.0bn Cost/Income 2019: 50% 2020: 52% Jun-19 Jun-20 Jun-19 Jun-20 Fee/Income 2019: 28% 202
Slide 28: Non Banking Subsidiaries
Font Size: 20 | Font Feature: Bold Non Banking Subsidiaries Font Size: 16 | Font Feature: Bold Font Size: 10 | Font Feature: No Bold Investor Presentation 2020
Slide 29: I&M Burbidge Capital Ltd; I&M Insurance Agency Ltd
I&M Burbidge Capital Ltd I&M Insurance Agency Ltd Revenue Revenue The advisory business reported a The Insurance agency 79% reduction in revenues as a contributed Kshs 69.2Mn result of a challenging origination to Group profitability environment and delay in completion of transactions leading to def
Slide 30: I&M Foundation; I&M Realty
I&M Foundation I&M Realty Foundation New I&M Head Quarters The Group set up I&M Foundation in 2019 Teams have relocated in phases which will now continue to spearhead the into the new headquarters on 1st Group’s shared growth agenda in the areas Parklands Avenue of Environment and conservation, Educ
Slide 31: Disclaimer
Disclaimer The contents herein have been presented in good faith. The information, statements and opinions set out in this presentation and subsequent discussion do not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any s
Slide 32: Thank You
Thank You I&M HOLDINGS PLC 1 PARK AVENUE 1ST PARKLANDS P.O. BOX 30238 – 00100 TEL: +254 (0)20 3221000 INVEST@IMBANK.CO.KE I&M is regulated by the Central Bank of Kenya