Slide 1: Half year ended June 2015 Investors & Analysts Presentation
Half year ended June 2015 Investors & Analysts Presentation
Slide 2: Disclaimer
DISCLAIMER This presentation is based on FBN Holdings Plc‟s („FBNH‟ or the „Group‟ or „HoldCo‟) unaudited IFRS results for the six months ended 30 June, 2015. The Group's financial statements have been prepared using the accounts of the subsidiaries and businesses within FBNHoldings. When we use the
Slide 3: Outline
Outline Overview & Operating Environment Pg 5 - 8 Financial Review Pg 10 - 21 Performance Review - Business Groups Pg 23 - 25 Outlook Pg 27 3
Slide 4: Overview & Operating Environment
Overview & Operating Environment 4
Slide 5: Macroeconomic environment
Macroeconomic environment OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Inflation MPR Treasury bills • Reduced purchasing power from increased inflation; Inflation rose to 9.2% in June 2015 from its 8.5% levels in March 2015 14.0% • Reduced oil prices and declining government revenues w
Slide 6: Performance snapshot
Performance snapshot OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Income statement • Gross earnings of N271.3bn, up 28.0% y-o-y (H1 2014: N212.0bn) • Net interest income of N132.7bn, up 15.2% y-o-y (H1 2014: N115.2bn) • Non-interest income of N61.2bn, up 41.7% y-o-y (H1 2014: N43.2bn)
Slide 7: Economic fundamentals impact profitability as efficiency improves
Economic fundamentals impact profitability as efficiency improves OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Operating income (Nbn) Cost-to-income +19.8% 355.1 66.7% 62.7% 69.8% 296.4 106.8 64.9% 64.5% 65.1% 105.1 58.5% 90.5 88.8 79.8 Annual Annual 2013 2014 Q2 14 Q3 14 Q4 14 Q1 15 Q
Slide 8: Key themes impacting our business
Key themes impacting our business OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Capital Requirements Oil Price Decline No plans by FBNHoldings to raise Tier 1 capital in the short term given: Currency Devaluation • low market liquidity Hedge contracts in place for some • depressed valua
Slide 9: Financial Review
FBNHoldings Financial Review
Slide 10: H1 2015: Overview of income statement
H1 2015: Overview of income statement OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX • Gross earnings grew by 28.0% y-o-y to N271.3bn (H1 2014: N212.0bn); Nbn H1 14 H1 15 y-o-y attributable to growth in interest income from loans and advances to customers Gross Earnings 212.0 271.3 28.0%
Slide 11: H1 2015: Overview of statement of financial position
H1 2015: Overview of statement of financial position OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Structure – June 2015 (Nbn) Nbn FY 14 H1 15 y-t-d N4,418 N4,418 4,418.2 Other assets 5 [N4,343] [N4,343] Total Assets 4,342.7 1.7% 3.1% [2.4%] 137,2 Investment Securities (interest Propert
Slide 12: High quality deposit funding base sustained with contribution from retail
High quality deposit funding base sustained with contribution from retail OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 2 Deposits by SBU Nbn Deposits by type Nbn (First Bank of Nigeria Only) Retail banking Private banking Corporate banking Commercial banking Current accounts Savings ac
Slide 13: Evolution of H1 2015 profit after tax
Evolution of H1 2015 profit after tax (Nbn) OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX H1 2015 H1 2014 24.8% 47.1% 41.7% 22.4% 15.3% ROaE 14.8% 15.7% ROaA 1.8% 1.9% 205.8 73.1 61.2 193.9 119.2 37.3% 239.1% -100% 7.9% 8.6% 7.7% 74.7 22.6 0.0 52.1 12.0 40.1 2 Interest income Interest N
Slide 14: Strong revenue generation capabilities supported by enhanced treasury management
Strong revenue generation capabilities supported by enhanced treasury management OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Gross earnings breakdown (Nbn) 4 Interest Income Non Interest Income • Interest income, constituting 76% of the gross earnings, increased by 24.8% y-o-y thanks
Slide 15: Improvement in NIMs reflects enhanced portfolio mix and rising rate environment
Improvement in NIMs reflects enhanced portfolio mix and rising rate environment OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 1 Net interest margin (NIM) Balance sheet efficiency • Healthy low-cost deposits 3 Leverage (times) Gross loans to deposits Liquidity Gross loans to total assets
Slide 16: Efficiency ratios gaining traction from on-going initiatives
Efficiency ratios gaining traction from on-going initiatives OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Operating income and expenses (Nbn) Operating income breakdown (Nbn) • Healthy low-cost deposits Operating income Operating expenses Cost to Income Ratio Other income Foreign excha
Slide 17: Increasing efficiency and flexibility in earning assets
Increasing efficiency and flexibility in earning assets OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 2 Interest earning assets mix (Nbn) FBNHoldings gross loans (Nbn) Growth rate (q-o-q) Other entities FirstBank Interbank Treasury Bills Net Loans and Overdrafts Bonds N2,072 10.4% N2,22
Slide 18: FirstBank - Nigeria only (Loan book breakdown)
FirstBank - Nigeria only (Loan book breakdown) OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 7 Breakdown of gross loans by SBU (Nbn) Gross loans - Breakdown by sectors 3% Manufacturing 11% [11%] Institutional banking Retail banking Public sector Corporate banking Commercial Banking Priv
Slide 19: Portfolio analysis
Portfolio analysis OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Loans and advances by maturity Loans and advances by type (First Bank of Nigeria only) (First Bank of Nigeria only) Overdrafts Term Loans Commercial loans 0 -30 days 1 - 3 months 3 - 6 months 6 - 12 months 1 - 3 years 3 -
Slide 20: Enhanced proactive portfolio management is a strong priority in current environment
Enhanced proactive portfolio management is a strong priority in current environment OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Asset quality trend (FBNHoldings) Evolution of credit impairments (FBNHoldings) Impairment charge (N'bn) NPL N‟bn Cost of risk NPL coverage (including statut
Slide 21: FBNBank UK – Continued improvement in performance
FBNBank UK – Continued improvement in performance OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Selected financial summary1 Loan book by sector Nbn H1 14 FY 14 H1 15 y-o-y 1.2% 17.1% Gross Earnings 14.4 29.9 16.0 11.4% Agriculture, Forestry and Fishing 14.6% [9.8%] Interest Income 12.5
Slide 22: Performance Review - Business Groups
Performance Review - Business Groups Commercial Banking Investment Banking & Asset Management Insurance NOTE: The pre-consolidation numbers of each of the business groups have been considered in discussing the performance of each business. 22
Slide 23: Commercial Banking – Focused on optimising assets, cost optimisation and profitability
Commercial Banking – Focused on optimising assets, cost optimisation and profitability OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Gross earnings – (Nbn) Six months 2015: • The Commercial Banking group remains the largest contributor to FBNH‟s gross earnings with 92.7% H1 2015 26.2% 2
Slide 24: IBAM Group – Diversifying revenue streams and deepening customer relationships
IBAM* Group – Diversifying revenue streams and deepening customer relationships OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Gross earnings – (Nbn) Six months 2015: 18.9 • The Investment Banking and Asset Management (IBAM) Group comprises of 76.7% investment banking, securities sales &
Slide 25: Insurance Group – Inorganic growth provides expanded market access
Insurance Group – Inorganic growth provides expanded market access OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Gross earnings – (Nbn) Six months 2015: • The insurance business group offers insurance brokerage and composite 4.1 underwriting services to customers 57.7% • FBN Insurance B
Slide 26: Outlook
Outlook FBNHoldings 26
Slide 27: Outlook reflects the challenging environment
Outlook reflects the challenging environment OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX FY 2014 Results H1 2015 Results 2015 Targets Deposit growth 4.2% 2.5% 5% - 10% Net loan growth 23.2% -4.3% ≤ 2%* Net interest margin 7.6% 7.8% 7% – 7.5% Cost to income 66.6% 61.5% 63% Cost of risk
Slide 28: Contact Details
Contact Details Head, Investor Relations Oluyemisi Lanre-Phillips Email: oluyemisi.lanre-phillips@fbnholdings.com Phone: +234 (1) 9052720 Investor Relations Team investor.relations@fbnholdings.com Phone: +234 (1) 9051146 +234 (1) 9051386 +234 (1) 9051086 28
Slide 29: Appendix
Appendix FBNHoldings 29
Slide 30: Diversified Financial Holding Company FBN Holdings Plc
Diversified Financial Holding Company OVERVIEW FINANCIAL PROFILE STRATEGIC AGENDA SUMMARY APPENDIX FBN Holdings Plc First Bank of Nigeria Kakawa Discount House FBN Insurance FBN Microfinance Bank Limited Limited Limited Limited First Pension FBN Capital Limited FBN General Custodian Limited Insuranc
Slide 31: GDR Programme
GDR Programme FBNHoldings has a Sponsored Regulation S Global Depositary Receipt (RegS GDR) program • CUSIP: 30190K102 • ISIN: US30190K1025 • Ratio: 1 GDR : 50 Ordinary Shares • Depositary bank: Deutsche Bank Trust Company Americas • Depositary bank contact: Stanley Jones • ADR broker helpline: +1 2