Absa Bank Kenya Plc · NSEKE:ABSA
Absa Bank Kenya — Barclays Bank Kenya — H1 2015 Earnings Presentation
23 slides from Absa Bank Kenya's earnings presentation, Aug 13, 2015
Slide 1: Barclays Bank Kenya 2015 Half year results announcement
Barclays Bank Kenya 2015 Half year results announcement 13 August 2015
Slide 2: Francis Okomo Okello, Barclays Kenya Chairman
Francis Okomo Okello Barclays Kenya Chairman
Slide 3: Diverse trends in the macro economic environment
Diverse trends in the macro economic environment INFLATION / 91 DAY T-BILL RATE / AVERAGE LENDING RATE / EXCHANGE 18.0% 100.00 16.0% 98.00 14.0% 96.00 • Volatile exchange rate 12.0% 94.00 10.0% 92.00 8.0% 90.00 • Inflation edging up 6.0% 88.00 4.0% 86.00 • Relatively high interest rates Inflation 91
Slide 4: Jeremy Awori, Barclays Kenya Managing Director
Jeremy Awori Barclays Kenya Managing Director
Slide 5: In 2015, we have been focusing on driving growth
In 2015, we have been focusing on driving growth Our Pillars • Expanded existing business 1 Company • Accelerated new revenue streams Enhanced customer experience 2 Customer • Our Strategic • Increased employee engagement Drivers 3 Colleagues • Empowering communities around us 4 Citizenship • Delive
Slide 6: We have opened up new revenue streams…
We have opened up new revenue streams… • Bancassurance • USD Debit Card • Asset-based Finance Centre • Mortgage Centre • Cash send on Mobile 6 | Barclays Kenya 2015 Half Year Results Announcement | 13th August 2015
Slide 7: …while expanding our existing business
…while expanding our existing business • Renewed SME focus • Increased Fixed income trading • Focused Public sector engagement • Revamped La Riba proposition • Steady growth in Retail & Cards 7 | Barclays Kenya 2015 Half Year Results Announcement | 13th August 2015
Slide 8: Customers remain at the core of our business…
Customers remain at the core of our business… • Improved Retail Banking Net Promoter Score to 36% in 2015 *sample size (n) = 1385 • Installed Queue management system in Top 20 Branches & Prestige centres • Rolled Out New Functionalities on Digital Channels • Installed 90 new ATM’s - 53 New generatio
Slide 9: …as we continue to develop and grow our people
…as we continue to develop and grow our people • Driving performance culture A United Nation global campaign to engage 1 billion men to support gender equality • Diversity and Inclusion • Career Coaching Program • Mobility programme • HeforShe campaign 9 | Barclays Kenya 2015 Half Year Results Annou
Slide 10: We are driving Innovation & Enterprise agenda…
We are driving Innovation & Enterprise agenda… • More than technology • Product Innovation • Launch of the Barclays Africa Supply Chain Challenge • Investing to build innovation Ecosystem • Platinum sponsor for Nairobi University Innovation 10 | Barclays Kenya 2015 Half Year Results Announcement | 1
Slide 11: …as we empower the communities around us
…as we empower the communities around us • Techno serve partnership – Youth Agripreneurship Program • Banking on Change • Shinning hope for community • Its’tyme - driving employability and entrepreneurship 11 | Barclays Kenya 2015 Half Year Results Announcement | 13th August 2015
Slide 12: Execution does lead to recognition
Execution does lead to recognition We have been recognized for our execution “The Best Retail Bank in Kenya” – Excellence in Retail Financial Services “Best Deposit Product in Africa” - Zidisha “Most Prestigious Bank in Kenya” 12 | Barclays Kenya 2015 Half Year Results Announcement | 13th Augu
Slide 13: Yusuf Omari, Barclays Kenya Chief Financial Officer
Signposting Yusuf Omari Barclays Kenya Chief Financial Officer
Slide 14: Business banking leading in asset growth
Business banking leading in asset growth Net Customer assets (Kes bn) Loans by segment Total bank Segment contribution 4% 134 128 Corporate Banking 17% 107 101 42% Business Banking Consumer Banking 10% H1 2012 H1 2013 H1 2014 H1 2015 H1 2014 H1 2015 14 | Barclays Kenya 2015 Half Year Results Announc
Slide 15: Focus on quality lending evident in credit loss ratio
Focus on quality lending evident in credit loss ratio Net Loan Book (Kes Bn) Non Performing Loans Ratio Average Loss Rate (%) Kes bn % 140 134 2.0 4.5% 128 120 101 107 3.3% 3.5% 100 1.1% 1.1% 2.8% 80 0.9% 0.9% 1.0 60 40 20 0 0.0 H1 2012 H1 2013 H1 2014 H1 2015 H1 2012 H1 2013 H1 2014 H1 2015 Loan Lo
Slide 16: Improving deposit mobilisation across all segments
Improving deposit mobilisation across all segments Customer deposits (Kes bn) Deposits by segment Total bank Segment contribution 10% 163 148 139 123 Corporate Banking 14% 1% Business Banking Consumer Banking 14% H1 2012 H1 2013 H1 2014 H1 2015 H1 2014 H1 2015 16 | Barclays Kenya 2015 Half Year Resu
Slide 17: Healthy capital and liquidity to support future growth
Healthy capital and liquidity to support future growth ..Combined with improved capital structure High liquidity buffers, From Tier II capital injection 41.1% Core Capital Ratios Total Capital Ratios 34.0% 18.5% 21.1% 14.0% 15.9% 15.7% 15.3% 4.0% 1.2% 5.4% 4.8% 14.5% 14.5% 20.0% 20.0% 10.5% 10.5% H1
Slide 18: Income momentum driven by non-interest income
Income momentum driven by non-interest income NII (Kes m) NFI (Kes m) +12% +4% 4,782 9,690 10,040 4,260 H1 2014 H1 2015 H1 2014 H1 2015 Declining NIMS Income Split 2014 Income Split 2015 30.5% 32.3% 10.3% 10.0% 69.5% 67.7% H1 2014 H1 2015 NFI NII 18 | Barclays Kenya 2015 Half Year Results Announceme
Slide 19: Top line growth driving profitability
Top line growth driving profitability Kes million H1 2014 H1 2015 % Change Interest Received 11,097 12,166 10% Interest Paid (1,407) (2,126) 51% Net Interest Income 9,690 10,040 4% Non Interest Income 4,260 4,782 12% Total Income 13,950 14,822 6% Costs (7,119) (7,801) 10% Impairment (720) (586) (19%
Slide 20: Interim dividends at Kes 0.20 per share
Interim dividends at Kes 0.20 per share Dividends H1 2014 H1 2015 Interim Dividend per share (Kes) - 0.20 Total Dividends (Kes million) - 1,086 20 | Barclays Kenya 2015 Half Year Results Announcement | 13th August 2015
Slide 21: 2015 H2 Outlook
Signposting 2015 H2 Outlook
Slide 22: We will continue to execute our strategic agenda
We will continue to execute our strategic agenda • Drive balance sheet growth • Continuous focus on SME • Drive growth in new revenue streams • Drive efficiency and productivity • Continue to forge strategic partnerships • Drive entrepreneurship and innovation agenda • Focus on our core business Ret
Slide 23: Q&A
Signposting Q&A