Slide 1: Q3 2015 Group Results Presentation to Investors & Analysts
Q3 2015 Group Results Presentation to Investors & Analysts September 2015 ZENITH BANK PLC
Slide 2: Disclaimer
Disclaimer This presentation is based on the consolidated financial statements of Zenith Bank Plc, a company incorporated in Nigeria on 30 May 1990, and its subsidiaries (hereinafter collectively referred to as "the Group"). The financial statements are prepared in accordance with the International
Slide 3: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Peter Amangbo Slides 4 - 6 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 8- 16 Q&A 3
Slide 4: Nigerian Economy and Key Developments in the Banking Sector
Nigerian Economy and Key Developments in the Banking Sector Real GDP Growth (Rebase): GDP grew at the rate of 2.35% y/y in Q2 2015, down by 419bps from 6.54% recorded in the corresponding quarter of previous fiscal year. Key Headline Inflation: Theme Headline Inflation increased to 9.3% y/y in
Slide 5: New CBN Circulars and Other Directives
New CBN Circulars and Other Directives Limit on Foreign Currency The Central Bank has placed a limit on foreign currency borrowings by banks to 75% of Borrowings shareholders’ funds. BASEL II Implementation A revised guideline on BASEL II implementation covering Pillar 1 (minimum capital Update requ
Slide 6: Our Investment Proposition
Our Investment Proposition Strong earnings capacity and growth, Solid and liquid capital base, strengthened ERM practices, Good returns on investments and excellent customer services Key A dominant player in Nigerian Banking Industry: Theme Controls a significant share of the high end corporate
Slide 7: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Peter Amangbo Slides 4 - 6 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 8- 16 Q&A 7
Slide 8: Financial Highlights
Financial Highlights Key Marching towards exceptional performance in 2015 Theme Gross Earnings: N336.85bn +23.1% YoY Net Interest Income: N161.40bn +11.2% YoY P&L Net Interest Margin: 7.9% -1.3% YoY PBT: N104.05bn +19.9% YoY PAT: N83.09bn +16.9% YoY Customer Deposit: N2.52tn -0.6% YTD Balance Total
Slide 9: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 9 mths to 9 mths to YOY Sep-15 Sep-14 Change Gross Income 336,853 273,738 23.29% Continuing Operations: Interest and similar income 256,737 213,011 21.73% Interest and similar expense -95,337 -69,644 40.57% Net interest income 161,400 143,367 12.58% Impairme
Slide 10: Consolidating earnings and profitability...
Consolidating earnings and profitability... Comments Net Interest Margin Net Interest Margin (NIM) declined marginally YoY by 1.3% (from 8.0% in Q3 2014 to 7.9% in Q3 2015) as yields on government securities dropped during the 3rd quarter of 2015. Cost-to-Income Ratio declined YoY by 2.3% (from 5
Slide 11: Revenue Base ...Sustained Diversification
Revenue Base …Sustained Diversification Interest Income Q3 2014 Q3 2015 N'million Q3 2015 Q3 2014 YoY PBT Interbank Placements 6,401 4,271 50% Treasury Bills 39,301 41,910 -6% Govt & Other Bonds 22,622 25,016 -10% Loans & Advances 188,413 141,814 33% Total 256,737 213,011 21% Interest income from
Slide 12: Continuous efforts in cost-reduction strategies
Continuous efforts in cost-reduction strategies ….. Q3 2015 Interest Expenses Q3 2014 N'million Q3 2015 Q3 2014 YoY Current accounts 3,771 2,969 27% Savings accounts 8,131 3,871 110% Time Deposits 72,358 55,548 30% Interbank takings 1,150 2,645 -57% Borrowed funds 9,927 4,611 115% Total 95,337 69,64
Slide 13: Balance Sheet- Assets
Balance Sheet- Assets Group Group YTD Group (N'm) Sep-15 Dec-14 Change Sep-14 Cash and balances with central banks 565,124 752,580 -24.91% 556,330 Treasury bills 356,853 295,397 20.80% 438,555 Assets pledged as collateral 263,027 151,746 73.33% 6,930 Due from other banks 472,590 506,568 -6.71% 426,1
Slide 14: Balance Sheet- Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group YTD Group (N'm) Sep-15 Dec-14 Change Sep-14 Customers deposits 2,521,828 2,537,311 -0.61% 2,309,614 Current income tax 3,627 10,042 -63.88% 1,778 Deferred income tax liabilities 36 - - 482 Other liabilities 300,524 289,858 3.68% 274,698 On-lending faci
Slide 15: Sustained assets & liabilities match
Sustained assets & liabilities match…... Loans & Advances Loan Growth Q3 2014 Q3 2015 Deposit Mix Deposit Growth Q3 2014 Q3 2015 15
Slide 16: Continued market dominance through strong liquid asset base and funding mix
Continued market dominance through strong liquid asset base and funding mix… Q3 2015 Liquid Assets Q3 2014 N'million Q3 2015 Q3 2014 YoY Cash 72,243 51,572 40% Operating accounts with CBN 49,264 113,144 -56% Treasury bills 356,853 438,555 -19% Assets pledged as collateral 263,027 6,930 3695% Current
Slide 17: P&L – By Geography
P&L – By Geography Gross Revenue 9 Months Ended Rest of Nigeria Europe Eliminations Consolidated Sept 2015 (N’m) Africa Q3 2015 Total Revenue 316,929 19,854 8,272 -8,202 336,853 Share of profit of - - - 206 206 Associates Total Expense -208,768 -13,325 -6,674 4,240 -233,007 Profit Before Tax 99,681
Slide 18: P&L – By Sector
P&L – By Sector Gross Revenue 9 Months Ended Sept Corporate Institutional Public Retail Consolidated 2015 (N’m) Q3 2015 Total Revenue 178,213 49,662 23,610 85,368 336,853 Total Expenses -125,712 -30,796 -18,355 -57,938 -232,801 Profit Before 52,501 18,866 5,255 27,430 104,052 Tax Tax -10,578 -3,801
Slide 19: Deposits & Loans – By Sector
Deposits & Loans – By Sector Q3 2015 Total Deposits - N2.52tn Q3 2014 Total Deposits - N2.31tn Q3 2015 Gross Loans - N1.88tn Q3 2014 Gross Loans - N1.56tn 19
Slide 20: Healthy Risk Assets Portfolio
Healthy Risk Assets Portfolio… Our Risk Management Strategy NPL Coverage Ratio The group adopts a complete and integrated approach to risk management that is driven from the Board level to the operational activities of the bank. Risk management is practiced as a collective responsibility coordin
Slide 21: Focused risk management via portfolio diversification
Focused risk management via portfolio diversification Loans by Sector – Q3 2015 Loans by Sector – Q3 2014 o Gross Loans – N1.88tn o Gross Loans – N1.56tn Well Diversified Loan Portfolio 21
Slide 22: NPL by Sectors
NPL by Sectors Q3 2015 Q3 2014 Transportation Public 5.1% Ut ilities Educat ion 1.0% 0.8% Financial Services Oil and Gas 16.6% 10.4% Government 3.4% Real Est ate Communicat and ion Const ruction 6.7 % 14.2% Power 3.5% Ot hers 4.5% General Agriculture Commerce 2.6% /Trading 18.3% Consumer Manufacturi
Slide 23: Strong Capitalization and Liquidity
Strong Capitalization and Liquidity Liquidity and Capital Adequacy Capital and liquidity ratios for the Bank – well above industry requirements. Capital Mix Capital base – predominantly made up of Tier 1 (core capital) which consists of mainly share capital and reserves created by appropriations of
Slide 24: Strategies for driving our vision
Strategies for driving our vision 1 The Bank focuses on cost 2 The Bank accomplishes this Compete effective deposits from the strategy by: aggressively for retail end of the market to lend Consistent focus and market share, but focus on high to the corporate end with Delivering superior invest
Slide 25: Our Key Growth Target Sectors
Our Key Growth Target Sectors Driving profitability with our competitive advantages Sector Identified Growth Sectors Competitive Advantage Business line & Geography Infrastructure Strong capital and liquidity Manufacturing Strong brand Petrochemicals Strong international rating Retail Extens
Slide 26: Outlook and Prospects for FY2015
Outlook and Prospects for FY2015 Retail Banking: The bank has tremendously grown its retail Customer Services : At the center of the Group’s pursuit of business especially in liability generation. This has been excellent customer service, we would continue to focus on achieved through mobile ban
Slide 27: Thank you
Q&A Thank you 32