First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — 9M 2016 Earnings Presentation
24 slides from First Holdco's earnings presentation, 2016
Slide 1: Nine months ended 30 September 2016 Investors & Analysts Presentation
Nine months ended 30 September 2016 Investors & Analysts Presentation
Slide 2: Disclaimer
DISCLAIMER This presentation is based on FBN Holdings Plc‟s („FBNH‟ or „FBNHoldings‟ or the „Group‟) unaudited IFRS results for the nine months ended 30 September, 2016. The Group's financial statements have been prepared using the accounts of the subsidiaries and businesses within FBNHoldings. FBNH
Slide 3: Outline
Outline Pg X 9M 2016 Key Highlights Pg 5 - 9 Outlook Pg 11 Appendix Pg 13 - 23 3
Slide 4: 9M 2016 Key Highlights
FBNHoldings 9M 2016 Key Highlights
Slide 5: Challenging macroeconomic environment persists
Challenging macroeconomic environment persists 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX OPERATING ENVIROMENT CURRENCY AND DEVALUATION • Nigerian economy officially in recession • Rise in inflation to 17.9% in 9M 2016 (9M • Liberalisation of the foreign exchange market 2015: 9.4%) essentially from hig
Slide 6: Our underlying business remains fundamentally strong while dealing with portfolio challenges
Our underlying business remains fundamentally strong while dealing with portfolio challenges 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX INCOME STATEMENT Gross earnings Net interest income Operating income Profit before taxes 9M16: N417.4bn 9M16: N202.9bn 9M16: N333.9bn 9M16: N57.5n 9M15: N390.0bn 9M15:
Slide 7: ….as we sustained our commitment to improving our performance
….as we sustained our commitment to improving our performance 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX KEY RATIOS Cost to income ratio Liquidity ratio1 Cost of funds Post-tax ROAE 9M16: 48.4% 9M16: 54.3% 9M16: 2.7% 9M16: 9.4% 9M15: 61.6% 9M15: 50.0% 9M15: 4.0% 9M15: 12.2% CAR2 (Basel 2) Gross loans t
Slide 8: ….with key developments.
….with key developments. 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX Commercial • Strengthened governance across the Group and recruited Banking competent personnel in strategic functions at FirstBank and its subsidiaries towards placing the Bank to its leadership position: Gross Earnings 9M15 9M16 The
Slide 9: Revamping the risk management - update
Revamping the risk management - update 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX 1) Completed a diagnostic review of the entire credit process 2) Strengthened governance across approval authorities with increased Board oversight 3) Changed the key personnel Involved with credit origination and oversig
Slide 10: Outlook
Outlook FBNHoldings 10
Slide 11: On track towards FY 2016 financial guidance
On track towards FY 2016 financial guidance 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX Key measures FY2015 9M2016 FY2016 (actual) (actual) (guidance) Deposit growth -2.6% 10.9% 10% - 12% Cost Efficiency Net loan growth -16.6% 21.6% 25% Optimisation of Capital 7.5% – 8% Net interest margin 8.1% 7.5% Cos
Slide 12: Appendix
Appendix FBNHoldings 12
Slide 13: Strong earnings capacity reflect the strength in the underlying business as cost efficiencies improve
Strong earnings capacity reflect the strength in the underlying business as cost efficiencies improve 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX Income statement Nbn FY 14 FY 15 y-o-y 9M 15 9M 16 y-o-y Key ratios FY 14 FY 15 9M 15 9M 16 Gross earnings 481.8 505.2 4.9% 390.0 417.4 7.0% Net interest marg
Slide 14: Evolution of 9M profit after tax
Evolution of 9M profit after tax 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX 9M 2015 (Nbn) 300.4 107.5 83.7 276.6 170.4 106.2 46.6 59.6 9.3 50.2 Interest income Interest expense Non-interest Net revenue 1 Operating PPOP 1 Impairment Profit 2 before tax Tax Profit after tax income expenses Charge 9M 2016
Slide 15: Optimising earning assets yields through increased treasury activities
Optimising earning assets yields through increased treasury activities as we enhance our revenue generating platforms for improved performance 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX 1 Gross earnings breakdown (Nbn) Net interest margin drivers Deposits cost Cost of funds Interest Income Non Interest
Slide 16: Strong revenue momentum with disciplined cost management in an inflationary environment
Strong revenue momentum with disciplined cost management in an inflationary environment 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX Operating income and expenses breakdown (Nbn) N bn 400.0 70% N364.4 65% 22.7 59% N333.9 350.0 60% 62% 22.2 17.7 300.0 N275.4 47% 54.5 50% 48% 68.4 16.2 250.0 22.5 N223.6 N
Slide 17: A well diversified and stable funding base demonstrating the strength of the franchise
A well diversified and stable funding base demonstrating the strength of the franchise 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX 2 Deposits by type Nbn Deposits by SBU trend Nbn FirstBank (Nigeria) Retail banking Private banking Corporate banking Commercial banking Current accounts Savings accounts Te
Slide 18: Breakdown of loans and advances
Breakdown of loans and advances 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX FirstBank (Nigeria) gross loans by SBU (Nbn) 1 FirstBank (Nigeria) core consumer / retail product portfolio Institutional banking Retail banking Public sector 1 [N4.2bn] Corporate banking Commercial Banking Treasury/Financial In
Slide 19: Profiling the loan book portfolio
Profiling the loan book portfolio 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX Loans and advances by maturity Loans and advances by type FirstBank (Nigeria) FirstBank (Nigeria) Overdrafts Term Loans Commercial loans 0 -30 days 1 - 3 months 3 - 6 months 6 - 12 months 1 - 3 years 3 - 5 years >5 years 8.8%
Slide 20: Cautious monitoring of the loan portfolio
Cautious monitoring of the loan portfolio 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX Asset quality ratios 9M 16 NPL evolution FBNHoldings FirstBank (Nigeria) NPL N‟bn NPL coverage (including statutory credit reserve) Cost of risk NPL ratio N54.3bn N-8.7bn N530.3bn 116.5% N484.7bn 353.5 410.7 531.7 616.
Slide 21: …...with a clear view of progress through sustained remediation and recovery efforts
…...with a clear view of progress through sustained remediation and recovery efforts 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX Oil & Gas NPLs NPLs by SBU Nbn FirstBank (Nigeria) FirstBank (Nigeria) Oil & Gas services Oil & Gas downstream Oil & Gas upstream Retail Banking Public Sector Institutional Ba
Slide 22: Liquidity position remains strong while improving the flexibility and efficiency of the balance sheet
Liquidity position remains strong while improving the flexibility and efficiency of the balance sheet 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX Balance sheet efficiency Capital ratios 2 FirstBank (Nigeria) and FBN Merchant Bank Total RWA (N'bn) Tier 1 capital ratio Leverage1 (times) Gross loans to dep
Slide 23: Definition of terms
Definition of terms 9M 2016 KEY HIGHLIGHTS OUTLOOK APPENDIX ₋ Cost-to-income ratio computed as operating expenses divided by operating income ₋ Leverage ratio computed as total assets divided by total shareholders‟ funds ₋ Loans to deposits ratio computed as gross loans divided by total customer dep
Slide 24: Contact details
Contact details Ag. Head, Investor Relations Tolulope Oluwole Email: Tolulope.O.Oluwole@fbnholdings.com Phone: +234 (1) 9052720 Investor Relations Team investor.relations@fbnholdings.com Phone: +234 (1) 9051386 +234 (1) 9051086 24