Access Holdings Plc · NSENG:ACCESSCORP
Access — H1 2024 Earnings Presentation
45 slides from Access's earnings presentation, October 2024
Slide 1: Half Year 2024 Financial and Operating Results Presentation
Half Year 2024 Financial and Operating Results Presentation October 2024
Slide 2: Outline
Outline • Macroeconomic and Regulatory Review • Strategic Update • Investment and Investor Strategy Update • Financial and Operating results • Banking Group • Non-Banking Verticals • Key Takeaways • 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: Macroeconomic & Regulatory Review
Macroeconomic & Regulatory Review 5
Slide 6: Global Operating Environment in H1 2024
Global Operating Environment in H1 2024 Global Outlook Recovery remains slow for many economies in SSA Interest Rates: Central banks are now pivoting to monetary policy easing, with the ECB recently cutting rates from The US Federal Reserve and the Bank of England (BOE) 2024 Q2 GDP Growth rate % Inf
Slide 7: Macro Economic Review (Nigeria) in H1 2024
Macro Economic Review (Nigeria) in H1 2024 The Central Bank of Nigeria raised interest rates Nigeria's economy grew by 3.19% year-on-year in from 18.75% to 26.75% through four rate hikes Q2 2024, accelerating from 2.98% in the previous between February and June 2024. Cash Reserve three-month period
Slide 8: H1 2024 - Key Regulatory Review (Nigeria)
H1 2024 - Key Regulatory Review (Nigeria) ▪ The CBN is ceasing daily CRR debits and will be ▪ All Authorized Dealer Banks going forward to pay out adopting an updated CRR mechanism that is intended to PTA/BTA through electronic channels only, including facilitate capacity for planning, monitoring an
Slide 9: H1 2024 Macro-economic and regulatory highlights - banking group subsidiaries
H1 2024 Macro- economic and regulatory highlights - banking group subsidiaries Region Countries Inflation Rate Interest rate ▪ Ghana: Ghana reached a deal to restructure $13 Billion of Eurobonds. Haircut on principal raised to 37% from 33% earlier proposal. International UK 2 5.25 ▪ Ghana: The BoG i
Slide 10: Strategic Updates
Strategic Updates 10
Slide 11: Sustained industry dominance
Sustained industry dominance ₦ 2.2trn N2.9trn AUM ₦36.6trn ₦ 12.3trn +162% y/y +134% y/y +37% y/y +38% y/y No 2 in PFA AUM Gross Earnings in Nigeria Largest Asset Base Largest loan -Nigeria's Best No1 in H1’24 for Nigerian Banks. portfolio, focused on Bank 2024 backed by a robust sustainable lending
Slide 12: Investment in People, Profit and Planet
Investment in People, Profit and Planet Growing customer footprint Growing users on our digital channels Listings 2,899 ATMs 11.8 mn unique 54k+ POS (Primary equity listing) mobile app and internet banking ($400m Tier II bond) ($300m Senior bond) users Baaa3 14.3 mn + USSD 770+ Branches +600k A+ BBB
Slide 13: H1 2024 sustainability scorecard
H1 2024 sustainability scorecard Corporate Social Investment Sustainable Advocacy and Governance Development Finance Reached Impacted 581 10,868,795 communities lives Invested 187,662 Serving on the Global Sustainable Serving on the Advisory Supported 73 Attracted US$108.5mn inflows employee volunte
Slide 14: Investment and Investor Strategy Updates
Investment and Investor Strategy Updates 14
Slide 15: Strategy Cycle 2023-2027
Strategy Cycle 2023-2027 Investment Phase Consolidation Phase Optimization Phase 2023 - 2025 2025-2026 2026 - 2027 As we continue our growth phase and In this phase our focus would be on Following our growth into various markets with investment into subsidiaires we would seek out streamlining our op
Slide 16: From investments to consolidation - creating long-term value beyond Africa
From investments to consolidation - creating long-term value 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 off
Slide 17: Approx N800bn value accretion to shareholders' fund in H1 2024
Approx N800bn value accretion to shareholders’ fund in H1 2024 30% YTD growth in equity ▪ Value accretion from our investments in subsidiaries, which acts as a natural hedge, for consolidation and building sustainable long-term impact on the balance sheet. ▪ 30% YTD accretion to equity as of HY 2024
Slide 18: Disciplined dividend payout and retention ratio
Disciplined dividend payout and retention ratio We have maintained and continue to carry forward a dividend policy which ensures we keep our investors in mind as well as keeping sufficient capital for growth, maintaining a sustainable dividend policy We have continued to maintain a dividend trend ov
Slide 19: Capitalising for growth
Capitalising for growth USD1.5 billion Capital Raising Program 01 Announced USD 1.5 billion capital raising program to enhance the Group’s financial strength through the issuance of various financial instruments. 01 The programme will be executed through a variety of methods including public offerin
Slide 20: Financial and Operating Results
Financial and Operating Results 20
Slide 21: H1 2024 financial scorecard - Access Holdings Plc
H1 2024 financial scorecard - Access Holdings Plc Gross Earnings Total Assets Shareholders’ Funds AUM (Pensions) ₦2.2trn ₦36.6trn ₦2.9trn ₦2.9trn +133.5% y/y +37.1% ytd +29.8% ytd +162% ytd Loans and Advances Customer Deposits Profit Before Tax Revenue (Hydrogen) ₦12.2trn N20.1trn ₦348.9bn N3.2bn +3
Slide 22: Consistent growth across all key metrics
Consistent growth across all key metrics ₦’million H1 2024 H1 2023 %∆ Gross Earnings 2,195,736 940,311 133.5% Net Interest Income 513,391 224,239 128.9% Sustainable Non-Interest Income 723,613 333,473 117.0% revenue across Operating Expenses (719,101) (315,941) 127.6% Impairment Charges income lines
Slide 23: Income statement trend – strong performance
Income statement trend – strong performance Gross Revenue (₦’bn) Profit After Tax (₦’bn) Net Interest Margin 281.3 5.1% 4.5% 2,195.7 3.8% 197.5 135.4 940.3 591.8 H1'22 H1'23 H1'24 H1'22 H1'23 H1'24 H1'22 H1'23 H1'24 Cost to Income Ratio Return on Average Equity Yield on Assets 65.6% 24.6% 14.5% 19.2
Slide 24: Balance sheet trend – steady growth
Balance sheet trend– steady growth Total Assets (₦’bn) NPL Ratio Return on Average Assets 36,597 3.1% 2.0% 26,689 2.8% 1.6% 2.7% 1.5% 14,998 Dec'22 Dec'23 Jun'24 Dec'22 Dec'23 Jun'24 H1'22 H1'23 H1'24 Loans and Advances (₦’bn) Customer Deposits (₦’bn) Shareholders Funds (₦’bn) 2,837 12,276 20,112 2,
Slide 25: Improved earnings supported by diversified revenue
Improved earnings supported by diversified revenue ➢ Gross earnings grew by 133.5% y/y to c. N2.196trn in the half year period Gross Revenue (₦’bn) (H1’23: ₦940.3bn), driven by increase in both interest and non-interest income. We achieved triple-digit growth in earnings despite the challenging macr
Slide 26: Total assets – steady growth
Total assets – steady growth 3,078* Access Holdings Plc closed H1 2024 with Total Asset of ₦36.6trn, 36,596 a 37.1% growth from ₦26.7trn in FY 2023, maintaining a well- 3,108* structured and growing balance sheet across its Banking Group and 26,686 Non-banking subsidiaries (Payments, Pensions, Insur
Slide 27: Strong deposit base
Strong deposit base Customer deposits grew by 31.3% YTD to ₦20.1trn in the period (FY’23:15.3trn), as our deliberate deposit mobilization efforts focusing on CASA growth continue to pay off and from the Deposits Mix (₦’bn) CAGR % impact of currency devaluation. 20,112 Margin (NIM) Ytd growth Term de
Slide 28: Steady progress on improving NIM and cost of funds
Steady progress on improving NIM and cost of funds 600.0 CAGR % 20.0% 513.3 18.0% 500.0 16.0% 400.0 14.0% Interest Income 12.0% 300.0 224.2 10.0% 197.5 8.0% *+99% p.a. 200.0 1472.1 6.0% 100.0 4.0% 4.5% 3.8% 5.1% 2.0% 0.0 0.0% H1'22 H1'23 H1'24 606.8 Net Interest Income Net Interest Margin 372.3 750b
Slide 29: Cost to Income remained flat despite inflation and devaluation
Cost to Income remained flat despite inflation and devaluation Operating Expenses (₦’bn), CIR 800.0 80.0% 78.0% 65.6% 76.0% 74.0% 700.0 60.7% 60.4% 72.0% 70.0% 68.0% 66.0% ➢ Cost to income ratio (CIR) moderated marginally to 60.4% in H1’24 from 64.0% 62.0% 600.0 60.0% 58.0% 56.0% 54.0% 52.0% 60.7% i
Slide 30: Access Banking Group – Capital & Liquidity Management
Access Banking Group – Capital & Liquidity Management 30
Slide 31: Strong regulatory ratios
Strong regulatory ratios Funding sources (%) Capital and Liquidity (₦’bn) 11,583 Other Liabilities Equity 9,458 8% 8% Interest-Bearing 6,292 Borrowings 7% Debt Securities Jun’24: 51.8% 57.2% Issued 2% ₦36.6trn Customer 39.5% Deposits Deposits from 55% Financial Institutions 20.2% 21.1% 19.8% 20% Dec
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) 12,276 Gross Loan Distribution by Sector Sector Jun’24 Dec’23 1,440 General Commerce 13.9% 14.0% 8,918 Finance and Insurance 12.2% 11.6% 0% 1% General 9.0% 9.3% 3%2% 3% 14% Oil & Gas - Upstream 7.8% 6.3% 881 3% Manufacturing - Others 7.7% 4.1% 4
Slide 34: Sustained improvements to asset quality and NPL
Sustained improvements to asset quality and NPL NPL Distribution by Sector NPL Ratio by Sector Jun’24 Dec’23 Oil and Gas - Downstream 6.6% 6.9% 0% 2% Sector Jun’24 Dec’23 General Commerce 6.6% 7.1% 3% General Commerce 33.7% 36.0% Agriculture 5.2% 3.0% Finance and Insurance 18.4% 0.4% 1% 2% 1% Genera
Slide 35: Access Banking Group – Subsidiaries performance
Access Banking Group – Subsidiaries performance 35
Slide 36: Subsidiaries performance - creating strong buffers and resilient growth hub
Subsidiaries performance - creating strong buffers and resilient growth hub The strategic expansion into higher-rated H1 2024 (in millions) geographies continues to yield positive results, driving organic growth and 402,006 sustained earnings. This growth is attributed to the scale built into the bu
Slide 37: Subsidiaries performance - creating strong buffers and resilient growth hub
Subsidiaries performance - creating strong buffers and resilient growth hub Highlights Africa Subsidiaries (Excluding Nigeria) • Operating Income: ₦306.9bn up 292%y/y (HY’23: Operating Income (in millions) ₦789bn) HY'24 HY'23 • Deposits from customers: ₦5,275.6trn up 95%% (HY’23: ₦2,7084trn) 163,167
Slide 38: Non-Banking Subsidiaries
Non-Banking Subsidiaries 38
Slide 39: Access Pensions: H1 2024 scorecard
*AUM Analysis Access Pensions: H1 2024 scorecard Synergies from the Access –ARM merger Products and Services • AUM of N2.9trn as of H1 2024, up 149% from FY’23 position: N1.1trn Largest PFA by Retirement Saving • Over 2.8m RSA accounts post number of Account (RSA) Retirement Fund Ethical and Access-
Slide 40: Hydrogen payments – H1 2024 scorecard
Hydrogen payments – H1 2024 scorecard HYDROGEN PAYMENTS H1 2024 MILESTONES NGN 277bn NGN 12.7trn NGN 830bn +5 ▪ Operating Income of N3.2 billion (H1 2023 N161 which is a 1876% growth YoY In POS, Instant Processed through Processed Pay and PG Switch FIs/OFIs ▪ Increased merchant onboarding our Switch
Slide 41: Key Takeaways
Key Takeaways xO) access Corporation
Slide 42: Summary - five key takeaways from H1 2024 performance
Summary- five key takeaways from H1 2024 performance 01 02 03 04 05 Earnings Profile Improved Profitability Strong Governance & Investment to Cost to Income Ratio Risk Management Consolidation Strong earnings profile Sustainable revenue growth Strong governance, commitment Strategic expansion into F
Slide 43: 2024 Guidance
2024 Guidance xO) access Corporation
Slide 44: Access Holdings: H1'24 Actuals and FY'24 Guidance
. Access Holdings: H1’24 Actuals and FY’ 24 Guidance Key Takeaways H1’24 Actuals 2024 Targets 24.6% >25% Return on Average Equity Healthy ROE expected over the next 5 year PROFITABILITY Return on Average Assets 2.0% >2% as we continue to maximise returns for shareholders. ROE along with ROA are Yiel
Slide 45: Investor Relations
Access Corporation Investor Relations Contact Information Webpage: https://theaccesscorporation.com/investor-relations/ E-Mail: Investor.Relations@theaccesscorporation.com ©Access Corporation 2022