Zenith Bank Plc · NSENG:ZENITHBANK
Zenith Bank — 9M 2013 Earnings Presentation
31 slides from Zenith Bank's earnings presentation, October 2013
Slide 1: 9-Month Group Results Presentation to Investors & Analysts
9-Month Group Results Presentation to Investors & Analysts Click to edit Master title style IFRS Compliant Results September 2013 Click to edit Master subtitle style people | technology | service ZENITH BANK PLC people | technology | service
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 Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 4: The Nigerian Economy
The Nigerian Economy … GDP Growth: The GDP grew at the rate of 6.72% y/y in Q2 2013, up by 33 bps from 6.39% GDP Growth Rate recorded in the corresponding quarter of the previous fiscal year. Key (2013 GDP Growth y/y: Q2 USA- 1.4%; Q2 UK – 1.4%; Q1 South Africa – 1.9% ) Theme The non-oil sector w
Slide 5: 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 Theme Listing on London Exchange: Zenith Bank has listed a non-capital raising GDR on the London Stock Exchange
Slide 6: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 7: Financial Highlights
Financial Highlights Key On Course for an Impressive Performance in 2013. Theme Gross Earnings: N255.30bn +11.41% YoY Net Interest Income: N138.98bn +16.05% YoY Net Interest Margin: 9.47% +6.39% YoY P&L PBT: N83.04bn +10.39% YoY PAT: N69.75bn +8.88% YoY Customer Deposit: N2.03tn +5.43% (YTD) Balance
Slide 8: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 9 mths to 9 mths to YOY Sep-13 Sep-12 Change Gross Income 255,299 229,161 11.41% Continuing Operations: Interest Income 190,968 168,219 13.52% Interest Expense -51,989 -48,466 7.27% Net Interest Income 138,979 119,753 16.05% Impairment Charge for Credit Loss
Slide 9: Strengthening earnings and profitability
Strengthening earnings and profitability... Comments Consistently high Net Interest Margin Strong Net Interest Margin (NIM) of 9.47% recorded in Q3 2013,; this was on the back of efficient balance sheet management (optimal resource allocation and assets pricing). Cost to Income Ratio declined Qo
Slide 10: Revenue Base...Sustained Diversification
Revenue Base …Sustained Diversification Q3 2013 Q3 2012 Interest Income Interbank Interbank PBT Placements Placements T-Bills & 2.4% 1.5% Inv. N'million Q3 2013 Q3 2012 YoY Securities Interbank Placements 2,897 4,100 -29% T-Bills & 33.4% T-Bills & Inv. Securities 63,854 54,104 18% Inv. Govt & Other
Slide 11: Continuous efforts in cost-reduction strategies
Continuous efforts in cost-reduction strategies ….. Q3 2013 Q3 2012 Interest Expenses Borrowe Borrowed Current Inter- d funds funds accounts Current N'million Q3 2013 Q3 2012 YoY Inter- bank 1.4% 1.2% 6.7% accounts Current accounts 3,301 3,250 2% bank takings 6.3% Savings Savings accounts 2,668 1,11
Slide 12: Balance Sheet - Assets
Balance Sheet- Assets Group Group YTD Group (N'm) Sep-13 Dec-12 Change Sep-12 Cash and balances with central banks 535,092 332,515 60.92% 288,576 Treasury bills 464,899 669,164 -30.53% 360,658 Due from other banks 284,343 182,020 56.22% 392,605 Loans and advances 1,108,872 989,814 12.03% 964,871 Inv
Slide 13: Balance Sheet - Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group YTD Group (N'm) Sep-13 Dec-12 Change Sep-12 Customers deposits 2,033,971 1,929,244 5.43% 1,722,683 Current income tax 1,864 6,577 -71.66% 12,029 Deferred income tax liabilities 5,578 5,584 -0.11% 10,743 Other liabilities 227,162 117,355 93.57% 200,860
Slide 14: Sustained assets & liabilities match
Sustained assets & liabilities match.. Loans Growth Loans & Advances Q3 2012 Q3 2013 Advances Advances under under finance On- 1,200 1,140.5 finance On-lending lease 1,125.1 lending 1,094.3 lease Facilities 1.8% Facilities 1.3% 5.4% 1,014.5 4.6% 993.1 1,000 N'bn Overdrafts Overdraft 30.5% 31.4% 800
Slide 15: Continued market dominance through strong liquid asset base and funding mix
Continued market dominance through strong liquid asset base and funding mix… Q3 2013 Q3 2012 Treasury bills Current balances with Liquid Assets Current Current 36.2% Current balances banks within balances with Treasury balances with banks Nig. banks outside bills with banks within Nig. 0.8% Nig. 34.
Slide 16: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 17: P&L - By Geography
P&L – By Geography 9 Months Ended Gross Revenue Rest of September 2013 Nigeria Europe Eliminations Consolidated Africa (N’m) Nigeria Q3 2013 92.51% Total Revenue 240,276 13,537 5,914 -4,428 255,299 Total Expense -164,189 -8,421 -4,080 4,428 -172,262 Profit Before Tax 76,087 5,116 1,834 - 83,037 Tax
Slide 18: P&L - By Sector
P&L – By Sector 9 Months Ended Sept 2013 Discontinued Consolidated Corporate Institutional Public Retail (N’m) Operations Total Revenue 107,947 40,362 30,762 64,552 11,676 255,299 Total Expenses -72,995 -24,417 -19,544 -46,572 -8,735 -172,262 Profit Before Tax 34,952 15,945 11,218 17,981 2,941 83,03
Slide 19: P&L - By Sector
P &L – By Sector Gross Revenue – Q3 2013 Gross Revenue – Q3 2012 Corporate and Commercial continues to be the hub of our business………. 19
Slide 20: Deposits & Loans - By Sector
Deposits & Loans – By Sector September 2013 Total Deposits September 2013 Gross Loans - N2.03tn - N1.14tn 20
Slide 21: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 22: Healthy Risk Assets Portfolio
Healthy Risk Assets Portfolio… NPL Coverage Ratio Our Risk Management Strategy 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 23: Focused risk management via portfolio diversification
Focused risk management via portfolio diversification Loans by Sector – Q3 2013 No concentration risk 23
Slide 24: NPL by Segment
NPL by Segment Q3 2013 o We continue to develop our Risk Management Strategy and improve on the quality of our loan portfolio. o Overall NPL ratio of 3.1% is currently one of the lowest in the industry 24
Slide 25: 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 – 98.20% 99.53% 99.66% 99.11% 99.59% 100% predominantly made up 80% of Tier 1 (core capital) 60% which consists of mainly % 40% sh
Slide 26: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 27: 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 28: Our Key Growth Target Sectors
Our Key Growth Target Sectors Driving profitability with our competitive advantages Sector Identified Growth Competitive Advantage Sectors Business line & Geography Infrastructure Strong capital and liquidity Manufacturing Strong brand Oil and Gas (Upstream & Strong international rating Downst
Slide 29: Outlook and Prospects for FY2013
Outlook and Prospects for FY2013 Mobile Banking: In a bid to encourage and promote person- Agriculture: The Federal government’s resolve to boost the agricultural sector in the country would no doubt create quite to-person payments and leverage on mobile phone channels as a number of opportuniti
Slide 30: Outlook and Prospects for FY2013
Outlook and Prospects for FY2013 Representative Office: We have officially opened a Deposit Base: Our drive for low cost and appropriately representative office in Beijing, the capital city of the Peoples mixed deposit base to fund our credit and money market Republic of China. The group is cert
Slide 31: Thank you
Q&A Thank you 32