First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — 9M 2013 Earnings Presentation
41 slides from First Holdco's earnings presentation, Jan 7, 2014
Slide 1: Transforming into the Financial Institution of First Choice
Transforming into the Financial Institution of First Choice Focused on Delivering Sustainable Long Term Returns Nine months ended September 2013 Investor & Analyst Presentation © FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014
Slide 2: Agenda
Overview & Operating Financial Review Environment Agenda Business Groups Strategy Appendix © FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014
Slide 3: Disclaimer
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Disclaimer Overview Financial Review Business Groups Strategy Summary/Outlook This presentation is based on FBN Holdings Plc’s (‘FBNH’ or the ‘Group’ or ‘HoldCo’) interim IFRS results for nine months ended
Slide 4: Overview & Operating Environment
Overview & Operating Environment © FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013 | 7 Jan 2014
Slide 5: The expanded FBN Holdings Group reflects the ICB acquisition
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 The expanded FBN Holdings Group reflects the ICB acquisition Overview Overview Financial Review Business Groups Strategy Summary/Outlook FBN Holdings PLC First Bank of Nigeria FBN Life Assurance FBN Microf
Slide 6: Relatively stable macroeconomic fundamentals but tougher regulatory environment impacts earnings
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Relatively stable macroeconomic fundamentals but tougher regulatory environment impacts earnings Overview Overview Financial Review Business Groups Strategy Summary/Outlook Macro Factors Impact on FBN Hold
Slide 7: Maintained leadership position within Nigeria
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Maintained leadership position within Nigeria Overview Overview Financial Review Business Groups Strategy Summary/Outlook Leader in Nigeria by total assets, gross loans and total deposits, with strong loca
Slide 8: Financial performance impacted by tougher regulatory headwinds
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Financial performance impacted by tougher regulatory headwinds Overview Overview Financial Review Business Groups Strategy Summary/Outlook Net revenue (Nbn) Cost to income ratio 298.3 64.4% 7.2% 77.8% 237.
Slide 9: Outlook
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan2014 Outlook Overview Financial Review Business Groups Strategy Summary/outlook Summary/Outlook • Continue to push top line growth across our Group with emphasis on enhancing revenue streams and creating further
Slide 10: On track to achieve 2013 financial targets
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan2014 On track to achieve 2013 financial targets Overview Financial Review Business Groups Strategy Summary/outlook Summary/Outlook 2012 Results 9M 2013 Results 2013 Targets 2014 Targets Deposit growth 23% 16.6%
Slide 11: Financial Review
Financial Review © FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013 | 7 Jan 2014
Slide 12: 9M 2013: Overview of income statement
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 9M 2013: Overview of income statement Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook • Gross earnings grew 11% y-o-y to N290.8bn, largely from interest income on Snapsh
Slide 13: 9M 2013: Overview statement of financial position
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 9M 2013: Overview statement of financial position Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Snapshot: Statement of financial position Balance sheet structure - Sep
Slide 14: Impact of increased public sector deposit withdrawal felt with increased competition for deposits
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Impact of increased public sector deposit withdrawal felt with increased competition for deposits Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Deposits by SBU Nbn Dep
Slide 15: Capital and liquidity levels remain adequate to support growth plans
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013 | 7 Jan 2014 Capital and liquidity levels remain adequate to support growth plans Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Components of capital (Nbn) Evolution of capital an
Slide 16: Evolution of 9M 2013 profit after tax
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Evolution of 9M 2013 profit after tax (Nbn) Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook 11.9% 58.8% 9.4% 2.3% 5.0% (1.9%) vs. 9M 2012 9M 2012 9M 2013 RoAE 21.9% 17.9
Slide 17: Gross earnings growth supported by increased lending activities
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Gross earnings growth supported by increased lending activities Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Gross earnings (Nbn) Gross earnings split by business gro
Slide 18: Maintained stability in Q-o-Q NIM despite regulatory headwinds
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan2014 Maintained stability in Q-o-Q NIM despite regulatory headwinds Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook • NIMs within guidance of 7.5% - 8.5% as at 9M 2013 Net int
Slide 19: Efficiency ratio supported by better containment of operating expenses
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan2014 Efficiency ratio supported by better containment of operating expenses Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook • Operating expenses rose by 5.0% y-o-y and 2.0% q-
Slide 20: Increasing efficiency and flexibility in earning assets
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Increasing efficiency and flexibility in earning assets Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Interest earning assets mix (Nbn) FBN Holdings gross loans (Nbn)
Slide 21: First Bank of Nigeria (Breakdown of loan book)
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 First Bank of Nigeria (Breakdown of loan book) Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Breakdown of loans by SBU Loan Breakdown by Sectors 3 General 7% [7%] Inst
Slide 22: FBN UK records resilient performance despite tough regulatory environment
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 FBN UK records resilient performance despite tough regulatory environment Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Selected financial summary (Sept 2013) Loan boo
Slide 23: Proactive portfolio management continues to remain a priority
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013 | 7 Jan2014 Proactive portfolio management continues to remain a priority Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Asset quality NPLs sector exposure 9M 2013 (FirstBank Niger
Slide 24: While ensuring early recognition of impaired assets
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013 | 7 Jan2014 …….while ensuring early recognition of impaired assets Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Allowance for impairments Nbn Evolution of credit impairments (Fir
Slide 25: Performance Review - Business Groups
Performance Review - Business Groups Commercial Banking Investment Banking & Asset Management Insurance & Microfinance © FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013 | 7 Jan 2014
Slide 26: Commercial Banking - Overview
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Commercial Banking- Overview Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Nine months 2013: • A 7.9% y-o-y increase in Gross earnings to N272.7bn (N252.7bn: 9M 2012) G
Slide 27: Investment Banking & Asset Management - Overview
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Investment Banking & Asset Management- Overview Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Nine months 2013: • Strong growth in q-o-q and y-o-y gross earnings and PB
Slide 28: Insurance - FBN Life Assurance - Overview
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Insurance - FBN Life Assurance- Overview Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Nine months 2013: Gross income – (Nmn) • Strong growth recorded in its business v
Slide 29: Insurance - FBN Insurance Brokers - Overview
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Insurance – FBN Insurance Brokers- Overview Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Nine months 2013: Gross income – (Nmn) • Ongoing implementation of the ‘no pre
Slide 30: Microfinance - Overview
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Microfinance- Overview Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Nine months 2013: Gross earnings – (Nmn) • FBN Microfinance (FBNM) recorded Gross earnings and PBT
Slide 31: Strategy
Strategy © FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013 | 7 Jan 2014
Slide 32: Commercial Banking Group – Business Updates
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Commercial Banking Group – Business Updates Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Strategic Business Unit 9M 2013 Performance Update § Refocused on the SME Segment thr
Slide 33: Commercial Banking Group (Cont'd)
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Commercial Banking Group (Cont’d) Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Initiatives 9M 2013 Performance Update § Upgrade of the bank’s enterprise banking platform from
Slide 34: Commercial Banking Group – International Subsidiaries Strategic Outlook for 2014
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Commercial Banking Group – International Subsidiaries Strategic Outlook for 2014 Overview Financial Review Business Groups Strategy Strategy Summary/Outlook FBN Bank UK Ltd • Expand Market share: Expand Re
Slide 35: Planning for the 2016 Strategy Cycle building on recent transformation
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 We have commenced planning for the 2016 Strategy Cycle building on the momentum of our recent transformation Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Strategic Planning C
Slide 36: Revised strategy consistent with vision of leading financial services Group within SSA
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Our revised strategy will be consistent with our vision of building a leading financial services Group within SSA Overview Financial Review Business Groups Strategy Strategy Summary/Outlook To become the p
Slide 37: Contact Details
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Contact Details Overview Financial Review Business Groups Strategy Summary/Outlook Head, Investor Relations Oluyemisi Lanre-Phillips Email: oluyemisi.lanre-phillips@firstbanknigeria.com Phone: +234 (1) 905
Slide 38: Appendix
Appendix © FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013 | 7 Jan 2014
Slide 39: Deliberate and measured loan growth as asset quality remains a priority
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 Deliberate and measured loan growth as asset quality remains a priority….. Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Loans and advances by maturity Loans and advan
Slide 40: Prompt attention and proactive account management to avert significant deteriorations
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 …..with prompt attention and proactive account management in focus to avert significant deteriorations Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Sector NPL ratios
Slide 41: GDR Programme
© FBN Holdings 2013 | Results Presentation for nine months ended 30 September 2013| 7 Jan 2014 GDR Programme Overview Financial Review Business Groups Strategy Summary/Outlook First Bank of Nigeria has a Sponsored Regulation S Global Depositary Receipt (RegS GDR) program § Ticker symbol: 999112Z LI