Stanbic Holdings Plc · NSEKE:SBIC
Stanbic — CfC Stanbic Holdings — H1 2016 Earnings Presentation
26 slides from Stanbic's earnings presentation, August 2016
Slide 1: Financial performance for the half year period ended 30 June 2016
Financial performance for the half year period ended 30 June 2016
Slide 2: Agenda
Section Page 1. Welcome and remarks 3 2. Half year review 4 3. Detailed financial analysis 7 4. Corporate and Investment Banking (CIB) 17 5. Personal and Business Banking (PBB) 20 6. SBG Securities (SBGS) 23 Q&A ADD PRESENTATION TITLE IN SLIDE MASTER MODE / PAGE 2 /
Slide 3: Welcome and remarks
Welcome and remarks
Slide 4: Half year review
Half year review Philip Odera Chief Executive, CfC Stanbic Bank
Slide 5: Operating environment
Operating environment Macro- economic Regulatory environment environment Market opportunities Market threats • Capping of interest rates • Inflation – June 2016 • Revision of KBRR • Kenya interbank • Brexit 5.8% vs. June 2015 7.0% • Proposed new capital transaction switch • Deteriorating operating •
Slide 6: Key metrics
Key metrics June-2016 June-2015 Change % Total revenue (Kes m) 9,430 7,732 22 The Kenya Group (Kenya Bank, South Sudan branch, SBG Securities and the newly incorporated Stanbic Insurance Profit after tax (Kes m) 2,393 1,959 22 Agency Limited) reported a year on year growth in Cost to income ratio 52
Slide 7: Detailed financial analysis
Detailed financial analysis Abraham Ongenge Chief Financial Officer
Slide 8: Group Structure
Group Structure CfC Stanbic Holdings Ltd Stanbic Insurance CfC Stanbic Bank SBG Securities Agency Kenya South Sudan Branches Branch Legal entities operate under the Corporate and Investment Banking and Personal and Business Banking business unit segments ADD PRESENTATION TITLE IN SLIDE MASTER MODE /
Slide 9: Summary income statement
Summary income statement June-2016 June-2015 Change Kes millions Kes millions % Net interest income 5,464 4,393 24 Non-interest revenue 3,966 3,339 19 Total income 9,430 7,732 22 Credit impairment charges (834) (241) >(100) Total income after credit impairment charges 8,596 7,491 15 Operating expens
Slide 10: Net interest revenue and non-interest revenue
Net interest revenue Non-interest revenue 10,000 4,500 Kes millions Kes millions 9,000 4,000 8,000 7,000 3,500 6,000 Interest income 3,000 5,000 Trading and other Interest expense 2,500 4,000 income 3,000 Net interest income 2,000 Net fees and 2,000 commissions 1,500 1,000 - 1,000 Jun 2015 Jun 2016
Slide 11: Operating expenses and credit impairment charges
Credit impairment charges Operating expenses 900 1.8% 6,000 Kes millions 62% 800 1.6% 60% 1.5% 5,000 60% 700 1.4% 58% Other operating 600 1.2% 4,000 expenses 56% 500 1.0% PBB credit losses Staff costs 3,000 400 0.8% CIB credit losses 54% CTI CLR 2,000 300 0.6% 52% 52% 200 0.5% 0.4% 1,000 50% 100 0.2
Slide 12: Summarised group balance sheet
Summarised group balance sheet June-16 June-15 Change Kes millions Kes millions % Assets Financial investments 59,458 60,693 (2%) Loans and advances to banks 12,392 20,341 (39%) Loans and advances to customers 108,485 100,176 8% Other assets 19,708 19,558 1% Property and equipment 2,257 2,778 (19%)
Slide 13: Customer loans and advances and total assets
Customer loans and advances and total assets June 2015 Loans and advances by product June 2016 total assets 213,400 213,301 213,200 Kes millions 213,000 14% 212,800 Home loans 212,600 212,342 50% 24% 212,400 Overdrafts 212,200 Vehicle asset finance(VAF) 12% 212,000 Term lending 211,800 Jun 2015 Jun
Slide 14: Customer loans and advances – Non performing loans (NPLs)
Customer loans and advances – Non performing loans (NPLs) Kes millions Net NPLs have increased by Kes 1,557m 6,000 35.0% These exposures are fully secured and the discounted 29.7% value of securities held explains the disproportionate 5,000 30.0% increase in loan loss provision and decrease in N
Slide 15: Customer deposits
Customer deposits Customer deposits dropped by 0.5% year on year mainly as a result of depreciation of the South Sudan currency. Kes millions Adjusting for this impact, customer deposits grew by 8% 112,000 Core accounts accounting for 70% of total deposits. 111,923 111,900 111,800 Customer depos
Slide 16: Funding, liquidity and capital
Funding, liquidity and capital 120% 100% Assets funded mainly from customer deposits 18% 18% 80% 4% 6% 3% 3% 60% 22% 20% The cumulative impact of depreciation of South Sudan pound is Kes 268m 40% 53% 53% 20% 0% Capital adequacy ratio (Bank only) Jun 2015 Jun 2016 Customer deposits Deposits with
Slide 17: Corporate and Investment Banking
Corporate and Investment Banking Mike Blades Executive, Corporate and Investment Banking
Slide 18: CIB summary performance
CIB summary performance June-2016 June-2015 Change Kes millions Kes millions % Net interest income 2,638 2,347 12 Growth in net interest income was as a result of increase in customer loans and advances and Non-interest revenue 2,806 2,604 8 improved margins Total income 5,444 4,951 10 Fees and
Slide 19: CIB 2016 strategic priorities
CIB 2016 strategic priorities Increased focus on transactional banking Growing the local currency customer assets and liabilities, underpinned by superior service Grow client revenues by broadening our customer base and increasing the share of wallet in existing clients Maintain strong disci
Slide 20: Personal Business Banking (PBB)
Personal Business Banking (PBB) Adam Jones Executive, Personal and Business Banking
Slide 21: PBB summary performance
PBB summary performance June-2016 June-2015 Change Kes millions Kes millions % Net interest income 2,826 2,046 38 Net interest income growth due to good growth in core customers deposits and margin benefits on Non-interest revenue 1,160 735 58 loans and advances Total income 3,986 2,781 43 Non-i
Slide 22: PBB 2016 strategic priorities
PBB 2016 strategic priorities Priority Area Planned Initiatives Invest further in Private and Commercial banking 1 Investment in further Relationship Managers segments Raise cheaper deposits i.e. current and savings 2 Local (7%) and foreign (3%) currency deposit campaigns accounts to improve margins
Slide 23: SBG Securities (SBGS)
SBG Securities (SBGS) Nkoregamba Mwebesa Chief Executive, SBG Securities
Slide 24: SBGS summary performance
SBGS summary performance June-2016 June-2015 Change SBG Securities earned revenues of Kes 161m for the period Kes millions Kes millions % ending 30th June 2016 indicating a decline from Kes 315m recorded in the same period last year The drop in performance reflects subdued activity in the equity
Slide 25: Perspective 2016 and SBGS 2016 strategic priorities
Perspective 2016 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 as we believe frontier markets will likely remain neutral
Slide 26: Q & A
Q&A ADD PRESENTATION TITLE IN SLIDE MASTER MODE / PAGE 26 /