Slide 1: Financial performance for the year ended 31 December 2016
Financial performance for the year ended 31 December 2016
Slide 2: Agenda
Section Page 1. Welcome and remarks 3 2. Full year review 4 3. Detailed financial analysis 7 4. Corporate and Investment Banking (CIB) 16 5. Personal and Business Banking (PBB) 20 6. SBG Securities (SBGS) 23 7. Stanbic Insurance Agency Limited (SIAL) 26 8. Appendix 30 Q&A Add presentation title in s
Slide 3: Welcome and remarks
Welcome and remarks Stanbic Moving Forward™
Slide 4: Full year review
Full year review Philip Odera Chief Executive, Stanbic Bank
Slide 5: Operating environment
Operating environment Macro- economic environment Regulatory environment Market opportunities Market threats • Deteriorating operating • Inflation – December 2016 • Implementation of Internal • Technological innovations: environment in South Sudan 6.4% vs. December 2015 Capital Adequacy Kenya interb
Slide 6: Key metrics
Key metrics Dec-2016 Dec-2015 Change The Group (Kenya Bank, South Sudan branch, SBG Securities and % Stanbic Insurance Agency Limited) reported a profit after tax of Kes Total revenue (Kes m) 18,517 16,944 9 4.4b Profit after tax (Kes m) 4,419 4,905 (10) Revenues grew by 9% mainly due to increase
Slide 7: Detailed financial analysis
Detailed financial analysis Abraham Ongenge Chief Financial Officer
Slide 8: Summary income statement
Summary income statement Dec-2016 Dec-2015 Change Kes millions Kes millions % Net interest income 10,860 9,303 17 Non-interest revenue 7,657 7,641 0.2 Total income 18,517 16,944 9 Credit impairment charges (1,752) (907) (93) Total income after credit impairment charges 16,765 16,037 5 Operating expe
Slide 9: Net interest revenue and non-interest revenue
Net interest revenue Non-interest revenue Kes millions Kes millions 18,000 9,000 16,000 8,000 14,000 7,000 12,000 6,000 10,000 Interest income 5,000 Trading and other income 8,000 Interest expense 4,000 Net fees and commissions 6,000 Net interest income 3,000 4,000 2,000 2,000 1,000 - - Dec 2016 Dec
Slide 10: Credit impairment charges and operating expenses
Credit impairment charges Operating expenses Kes millions Kes millions 2,000 2% 12,000 60.0% 1.5% 58% 1,800 1% 58.0% 10,000 1,600 1% 56.0% 1,400 8,000 1% Other operating 1,200 54.0% expenses 0.9% General debt provision 1,000 1% 6,000 Staff costs Specific debt provision 52.0% 800 1% CLR CTI 4,000 600
Slide 11: Summarised group balance sheet
Summarised group balance sheet Dec-16 Dec-15 Change Kes millions Kes millions % Assets Financial investments 52,927 48,702 9% Loans and advances to banks 16,989 23,290 (27%) Loans and advances to customers 115,588 104,982 10% Other assets 16,432 19,072 (14%) Property and equipment 2,262 2,302 (2%) I
Slide 12: Customer loans and advances
Customer loans and advances Dec 2016 Loans and advances by product Kes millions 118,000 115,588 116,000 114,000 112,000 14% 110,000 108,000 16% Home loans 106,000 104,982 Overdrafts 104,000 59% Vehicle asset finance(VAF) 102,000 11% Term lending 100,000 98,000 Dec 2016 Dec 2015 Customer loans and
Slide 13: Customer loans and advances – Non performing loans (NPLs)
Customer loans and advances – Non performing loans (NPLs) Kes millions Net NPLs by business unit 7,000 26.5% 26.2% 6,000 Dec 2016 Dec 2015 26.0% 5,000 25.5% CIB 4,000 CIB 40% 25.0% Loan loss provision PBB 45% PBB 55% 60% 3,000 Discounted value of security 24.5% Coverage ratio 2,000 24.5% 24.0% 1,000
Slide 14: Customer deposits
Customer deposits Customer deposits grew by 12% year on year with core Kes millions accounts accounting for 79 % of total deposits 125,000 Customer deposits by business unit 119,328 120,000 Dec 2016 Dec 2015 115,000 110,000 106,246 105,000 PBB CIB 48% CIB PBB 49% 100,000 52% 51% 95,000 Dec-16 Dec-
Slide 15: Funding, liquidity and capital
Funding, liquidity and capital 120% 100% 19% 18% 5% Assets funded mainly from customer deposits 80% 7% 2% 3% 60% 17% 22% 40% 56% 52% 20% Capital adequacy ratio (Bank only) 0% Dec-16 Dec-15 20.0% 18.7% Customer deposits Deposits with Banks Borrowings Other liabilities Equity 18.1% 18.0% 15.9% 15.9%
Slide 16: Corporate and Investment Banking
Corporate and Investment Banking Anton Marais Executive, Corporate and Investment Banking
Slide 17: CIB Summary performance
CIB Summary performance Dec-2016 Dec-2015 Change Net interest income grew by 9% as a result of growth in the Kes millions Kes millions % loan book as well as improved margins experienced in the first three quarters of the year; the margins were impacted Net interest income 5,555 5,097 9 from Q4 as
Slide 18: CIB 2016 achievements
CIB 2016 achievements Deeper sector focus and alignment Y/Y growth of the local currency assets and liabilities Good trade finance performance – Growth in trade assets and NII, contingents and trade fees Better coordination with PBB on Universal Banking Awards won in 2016: Best Foreign Exchange Pr
Slide 19: CIB 2017 strategic priorities
CIB 2017 strategic priorities Client centricity and responsiveness Growing the local currency customer assets Increased focus on transactional banking: Growing the local currency current accounts Universal Bank synergies and banking the ecosystem Rationalise products and systems – efficiency and cos
Slide 20: Personal Business Banking (PBB)
Personal Business Banking (PBB) Ben Wandawanda Executive, Business Banking
Slide 21: PBB summary performance
PBB summary performance Dec-2016 Dec-2015 Change Net interest income growth as a result of strong balance sheet Kes millions Kes millions % growth on key segments and on core accounts with high margins Net interest income 5,305 4,206 26 Non-interest revenue growth impacted by transfer of South N
Slide 22: PBB 2017 strategic priorities
PBB 2017 strategic priorities Leading with Business Banking • Eco-system approach; Bank the value chain to increase wallet share • Banc assurance – opportunity on marine insurance • Payments and collections Focus on non interest revenue generating activities • Trade financing • Card acquiring • Focu
Slide 23: SBG Securities (SBGS)
SBG Securities (SBGS) Bethuel Karanja Executive Director, SBG Securities
Slide 24: SBGS summary performance
SBGS summary performance Dec-2016 Dec-2015 Change SBG Securities earned revenues of Kes 295m for the Kes millions Kes millions % period ending 31st December 2016 indicating a decline from Kes 599m recorded in the same period last year Brokerage commission 224 399 (44) The decline was largely att
Slide 25: Perspective 2017
Perspective 2017 The weak trading conditions at the equities market still persist and market activity is likely to remain subdued in the near term given the existing macroeconomic conditions SBGS will continue to re-invest in the business and maintain a leading position across our respective cli
Slide 26: Stanbic Insurance Agency Limited (SIAL)
Stanbic Insurance Agency Limited (SIAL) Julia Shisia Executive, SIAL
Slide 27: Stanbic Insurance Agency Limited (SIAL): Who are we? What do we do?
Stanbic Insurance Agency Limited (SIAL) Who are we? What do we do? Stanbic Insurance Agency was established with Full brokerage service capabilities the sole objective of addressing the insurance Diverse insurance product offerings needs of Kenyans across the wide economic spectrum Value add servi
Slide 28: SIAL summary performance
SIAL summary performance Dec-2016 Dec-2015 Change Stanbic Insurance Agency Limited (SIAL) is a fully- Kes millions Kes millions % fledged subsidiary wholly owned by Stanbic Bank established in April 2015 Brokerage commission 133 23 >100% SIAL earned revenues of Kes 133m for the period ending 31s
Slide 29: SIAL 2017 strategic priorities
SIAL 2017 strategic priorities Full insurance intermediary service capabilities Diverse insurance product offerings Value added services (risk management surveys & arranging premium financing) Innovative client delivery Competitive pricing Risk management advice & expertise Add presentat
Slide 30: Appendix
Appendix Stanbic Moving Forward™
Slide 31: Accolades
Accolades Awards won in 2016: Best Foreign Exchange Provider in Kenya 2016 by Global Finance Best Treasury and Cash Management Provider in Kenya 2016 by Global Finance Best Trade Finance Provider in Kenya 2016 by Global Finance Corporate Bank of the year 2016 by Banker Africa Best Investme
Slide 32: Q & A
Q&A Add presentation title in slide master mode / page 32 /