Access Holdings Plc · NSENG:ACCESSCORP
Access — FY2023 Earnings Presentation
43 slides from Access's earnings presentation, March 2024
Slide 1: Full Year 2023 Financial and Operating Results Presentation
Full Year 2023 Financial and Operating Results Presentation March 2024
Slide 2: Outline
Outline • About Access Holdings • Macroeconomic and Regulatory Updates • Strategic Updates • Financial and Operating results • Banking Group • Non-Banking Verticals • 2024 Guidance and Outlook 2
Slide 3: Caution regarding forward-looking statements
Caution regarding forward-looking statements The information presented herein is based on sources which The information should not be interpreted as advice to customers on the purchase or sale of specific Access Holdings Plc. “ the Holding Company” regards as financial instruments. Access Holdings P
Slide 4: A leading global financial institution
A leading global financial institution Our Vision Our Values To create a globally connected community and ecosystem; ❖ Excellence Inspired by Africa, for the World. “Putting in exceptional effort for exceptional results” ❖ Curiosity Our Mission “Never stop questioning” To build and sustain one globa
Slide 5: Access Holdings – a journey of growth, resilience and market leadership
Access Holdings – a journey of growth, resilience and market leadership • Transitioned to a financial holding company – Access Holdings Plc • Acquired Capital Bank and Marina Bank • Formation of Access Pensions, Hydrogen Payments and acquisition of Megatech • First Nigerian bank to receive US$ 15mn
Slide 6: Macroeconomic & Regulatory update
Macroeconomic & Regulatory update 6
Slide 7: FY 2023 Global Operating Environment
FY 2023 Global Operating Environment Global Outlook Recovery remains slow for many economies in SSA Global Growth: After a sharp slowdown in 2023 to 3.1% from 3.5% in 2022, global growth is projected to remain at 3.1% in 2024. Interest Rates: Major central banks held interest rates steady in Q4 2023
Slide 8: Highlights of the Nigerian domestic economy in 2023
Highlights of the Nigerian domestic economy in 2023 According to the National Bureau of Statistics, Nigeria’s Gross Domestic Product (GDP) on an All other monetary policy parameters annual scale expanded by 2.74% in 2023, a slight remain unchanged. MPR - 18.75%, deceleration from the 3.10% growth ra
Slide 9: Key regulatory highlights – FY 2023 (Nigeria)
Key regulatory highlights – FY 2023 (Nigeria) H1 H2 ▪ MPC raised rates 3 times in H1 2023 by a cumulative ▪ MPC raised rates once in H2 2023 by 25bps, increasing 200bps, increasing MPR from 17.5% to 18.5%. MPR from 18.5% to 18.75%. ▪ CBN issued guidelines for the regulation of representative ▪ CBN l
Slide 10: FY 2023 Macroeconomic and regulatory highlights - Banking Group subsidiaries
FY 2023 Macroeconomic and regulatory highlights - Banking Group subsidiaries ▪ UK - The Bank of England’s Monetary Policy Committee (MPC) at its meeting ending on 2 August 2023, the MPC voted by a majority Region Countries Inflation Rate Interest rate to increase Bank Rate by 0.25 percentage points,
Slide 11: Strategic updates
Strategic updates xO) access Corporation
Slide 12: Strong franchise, solid earnings potential and expanding customer footprint
Strong franchise, solid earnings potential and expanding customer footprint Large customer base Growing users on our digital channels Listings 2,859 ATMs 18.5mn unique 54k+ POS (Primary equity listing) mobile app and internet banking ($400m Tier II bond) ($300m Senior bond) users Baaa3 16.6mn + USSD
Slide 13: From investments to consolidation - building a strong franchise beyond Africa
From investments to consolidation - building a strong franchise beyond Africa United Kingdom S&P: AA/A-1+ Moody’s: Aa3 Fitch: AA Morocco France Existing markets Egypt New Markets Malta Lebanon China France Countries of Interest S&P: AA Moody’s: Aa2 Fitch: AA U.A.E India Niger Hong Kong Opened Paris
Slide 14: Our Africa expansion is bolstered by presence and entry into key global financial hubs
Our Africa expansion is bolstered by presence and entry into key global financial hubs Markets of interests Direct subsidiaries Rep. offices Addressable Market Pool: Trade flows between Africa and Access international locations, ➢ >USD 24Bn revenues for African electronic payments industry growing a
Slide 15: Sustainability is at the heart of our business
15 Sustainability is at the heart of our business Corporate Social Investment Sustainable Advocacy and Governance Development Finance Reached Impacted 10,009,531 1,875 lives communities Invested 237,146 Appointed to the Global Appointed to the Advisory Supported 315 employee volunteering Attracted U
Slide 16: Financial and Operating Results
Financial and Operating Results 16
Slide 17: FY 2023 financial highlights – Access Holdings
FY 2023 financial highlights – Access Holdings ₦822.8b 59m+ 7,600+ 22 Market Cap Customers Employees Countries Gross Earnings Total Assets Shareholders’ Funds AUM (Pensions) ₦2.6trn ₦26.7trn ₦2.2trn ₦1.1trn +88% y/y +77.9% ytd +77.5% ytd +23.8% y/y Cost to Income Ratio Customer Deposits Profit Befor
Slide 18: Consistent growth across all key metrics
Consistent growth across all key metrics ₦’million FY 2023 FY 2022 %∆ Gross Earnings 2,594,738 1,387,911 87.0% Net Interest Income 695,360 359,431 93.5% Sustainable Non-Interest Income 940,391 560,646 67.7% revenue across Operating Expenses (697,531) (502,359) 38.9% income lines Impairment Charges (
Slide 19: Income statement – resilient performance
Income statement – resilient performance Gross Revenue (₦’bn) Profit After Tax (₦’bn) Net Interest Margin 5.4% 2,606.8 619.3 4.3% 4.0% 259.6 1387.9 971.9 160.3 152.2 FY'21 FY'22 FY'23 FY'21 FY'22 FY'23 FY'21 FY'22 FY'23 Cost to Income Ratio Return on Average Equity Yield on Assets 12.8% 58.8% 57.9%
Slide 20: Balance sheet – steady growth trajectory
Balance sheet – steady growth trajectory Total Assets (₦’bn) NPL Ratio Return on Average Assets (₦’bn) 26,686 4.0% 3.1% 3.0% 2.8% 14,998 NPL RATIO TO BE UPDATED 11,732 1.6% 1.1% Dec'21 Dec'22 Dec'23 Dec'21 Dec'22 Dec'23 FY'21 FY'22 FY'23 Loans and Advances (₦’bn) Customer Deposits (₦’bn) Shareholder
Slide 21: Solid performance supported by diversified revenue streams
Solid performance supported by diversified revenue streams Gross Revenue (₦’bn) ➢ Gross earnings grew by 87% y/y to c. ₦2.59trn in the period (FY’22: ₦1.39trn), from balance sheet growth and increased volume of CAGR % 2,594.7 transaction on our banking platforms. 33.1 +61% p.a. 277.5 ➢ Interest inco
Slide 22: Access Bank Nigeria: Digital lending performance
Access Bank Nigeria: Digital lending performance Digital lending revenue #,Thousand Digital lending count #,Thousand -14% p.a. 33,760 3,153 23,433 2,384 2,286 12,745 FY'21 FY'22 FY'23 FY'21 FY'22 FY'23 Products: ~₦33.7bn digital lending revenue generated, 44% y/y growth from ₦23.4billion in FY’22 as
Slide 23: Access Bank Nigeria: Enhanced revenue and transaction volumes across digital channels
Access Bank Nigeria: Enhanced revenue and transaction volumes across digital channels Count FY’21 (mn) Count FY’22 (mn) Count FY’23 (mn) YonY Growth Value FY’21 (₦’bn) Value FY’22 (₦’bn) Value FY’23 (₦’bn) YonY Growth Channels Debit/Credit Card 419 431 551 28% 4,038 5,974 7,586 27% POS 72 42 42 0% 1
Slide 24: Trading Income Analysis
Key Commentary Trading Income Analysis (₦mn) 346,713 ❖ High Yield Investment Securities • Leveraging high yield securities to boost trading 220,537 192,616 ❖ Project and Receivables Financing 112,904 94,235 • Pioneered the financing of state projects leveraging the States’ receivables 2,105 FX Tradi
Slide 25: Creating sustainable wealth through a portfolio of assets
Creating sustainable wealth through a portfolio of assets - Access Holdings FY’23 92% 77% y-o-y y-o-y growth growth in in Equity Equity 2,185.63 619.32 481.06 (76.95) 1,231.39 (69.19) ▪ There was N954 billion value accretion (77% y-o-y growth) moving the Group’s shareholders’ funds to N2.185trillion
Slide 26: Improved margins despite elevated interest rate environment
Improved margins despite elevated interest rate environment 800.0 6.0% 5.4% Interest Income 700.0 4.3% 600.0 4.0% 695.4 4.0% *+66% p.a. 500.0 1654.3 400.0 300.0 359.4 2.0% 827.3 601.7 200.0 100.0 301.5 0.0 0.0% FY'21 FY'22 FY'23 FY'21 FY'22 FY'23 Net Interest Income Net Interest Margin Interest Expe
Slide 27: Improved cost to income ratio in a high inflationary environment
Improved cost to income ratio in a high inflationary environment Operating Expenses (₦’bn), CIR ➢ Cost to income ratio (CIR) improved to 44.6% in FY’23 from 57.9% in FY’22, driven by higher revenues and positive outcomes 800.0 80% 78% 700.0 58.8% 57.9% 76% 74% 72% 70% 68% from the various cost optim
Slide 28: Total Assets – steady asset growth despite the challenging operating environment
Total Assets – steady asset growth despite the challenging operating environment 3,112* 26,686 ➢ Total assets increased by 77% to N26.7trn between 2,137* FY’ 23 and FY’22; N15.0trn) 1,466* 14,998 11,732 32.5% ➢ Access Bank restricted deposits with the CBN grew by 27.5% 3.0% 45.6% year on year and ha
Slide 29: Strong deposit base for building a strong franchise and expanding network
Strong deposit base for building a strong franchise and expanding network Customer deposits increased by 66% Y/Y to ₦15.3trn in the period (FY’ 22: ₦9.2trn), from real growth in the deposit base and impact of the Deposits Mix (₦’bn) CAGR, % FX rates unification (accounted for c.14% of deposit growth
Slide 30: Access Banking Group – Capital & Liquidity Management
Access Banking Group – Capital & Liquidity Management 30
Slide 31: Sufficient buffers to withstand market volatility and shocks
Sufficient buffers to withstand market volatility and shocks Funding sources (%) Capital and Liquidity (₦’bn) 9,416 Other Liabilities Equity 6,292 9% 8% 4,892 Interest-Bearing Borrowings 7% 51.8% Debt Securities Dec’23: 50.7% Issued ₦26.6trn 39.5% 2% Customer Deposits from Deposits Financial 58% 24.
Slide 32: Access Banking Group – Asset Quality
Access Banking Group – Asset Quality 32
Slide 33: Well diversified loan book
Well diversified loan book Net Loans & Advances (₦’bn) Gross Loan Distribution by Sector 8,918 Sector Dec’23 Dec’22 General Commerce 14.0% 12.2% 881 Finance And Insurance 11.6% 10.7% 0% 1% 3%2% General 9.3% 6.9% 14% 4% Construction 7.2% 6.9% 5,557 4% Information And Communication 6.8% 4.4% 4% Oil An
Slide 34: Sustained improvements to asset quality and NPL
Sustained improvements to asset quality and NPL NPL Distribution by Sector NPL Ratio by Sector Dec’23 Dec’22 Manufacturing - Others 9.6% 9.6% 0% 0% Sector 1% Dec’23 Dec’22 General Commerce 7.1% 4.3% 2% General Commerce 36.0% 16.5% Oil and Gas - Downstream 6.9% 3.9% Manufacturing - Others 14.3% 13.1%
Slide 35: Access Banking Group – Subsidiaries performance
Access Banking Group – Subsidiaries performance 35
Slide 36: Banking Group Subsidiaries' – strong buffers and resilient growth hub
Banking Group Subsidiaries’– strong buffers and resilient growth hub Key takeaways Africa Subsidiaries • Operating Income: ₦217.9bn up 91%y/y Operating Income (in millions) 154,299 (FY’22: ₦142.3bn) FY' 23 FY' 22 135,860 • Deposits from customers: ₦2.577.9trn up 123% (FY’22: ₦1.153.5trn) 77,850 • Lo
Slide 37: Non-Banking Verticals
Non-Banking Verticals xO) access Corporation
Slide 38: Access Pensions: Future Shaping
Access Pensions: Future Shaping Products and Services AUM Analysis Retirement Saving Largest PFA by • 21% Y/Y growth post-merger in number of Retirement Account (RSA) Fund Fund Ethical and Ethical and Non- AUM. 2nd Registered RSA Saving Account Management Management Non-Interest Interest • RSA Funds
Slide 39: Access Hydrogen: Simplifying Payments for African Businesses
Access Hydrogen Hydrogen: Simplifying Payments for African Businesses NGN 11 Trn+ *NGN 2.5 Bn ~11,500 540% PAY ▪ Launched POS payments in 100% y/y growth addition to existing account Processed Merchants MoM growth in gross revenue transfer payment options. through our onboarded across transaction va
Slide 40: Summary - five key takeaways from 2023FY performance
Summary- five key takeaways from 2023FY performance 01 02 03 04 05 Earnings Profile Solid Profitability Asset Base Regulatory Ratios Asset Quality Impressive earnings profile Strong revenue growth Solid growth through Sufficient buffers to Improved asset quality attributed to diversified revenue acr
Slide 41: 2024 Guidance
2024 Guidance xO) access Corporation
Slide 42: Access Holdings: FY'23 Actuals and FY'24 Guidance
Access Holdings: FY’23 Actuals and FY’ 24 Guidance Key Takeaways FY’23 Actuals 2024 Targets 2027 Targets Return on Average 36.2% 20%-25% >18%-25% Equity Healthy ROE expected over the next 5 year PROFITABILITY Return on Average 3.0% >2% >2% as we continue to maximise returns for Assets shareholders.
Slide 43: Investor Relations
Access Corporation Investor Relations Contact Information Webpage: https://theaccesscorporation.com/investor-relations/ E-Mail: Investor.Relations@theaccesscorporation.com ©Access Corporation 2022