Absa Bank Kenya Plc · NSEKE:ABSA
Absa Bank Kenya — Barclays Bank Kenya — FY2015 Earnings Presentation
27 slides from Absa Bank Kenya's earnings presentation, Mar 4, 2016
Slide 1: Barclays Bank Kenya 2015 Annual results announcement
Signposting Barclays Bank Kenya 2015 Annual results announcement 4 March 2016
Slide 2: Francis Okomo Okello, Barclays Kenya Chairman
Signposting Francis Okomo Okello Barclays Kenya Chairman
Slide 3: Macro Economic Outlook
Signposting Macro Economic Outlook
Slide 4: Volatile macro economic environment in 2015
Volatile macro economic environment in 2015 INFLATION / 91 DAY T-BILL RATE / AVERAGE LENDING RATE / EXCHANGE 22.0% 106.0 20.0% 104.0 18.0% 16.0% 102.0 • Significant swing on T-bill 100.0 14.0% 98.0 12.0% 10.0% 8.0% 96.0 94.0 • Inflation gradually rose above CBK 6.0% 92.0 upper limit of 7.5% 4.0% 90.
Slide 5: Jeremy Awori, Barclays Kenya Managing Director
Signposting Jeremy Awori Barclays Kenya Managing Director
Slide 6: In 2015, we executed our strategic agenda
In 2015, we executed our strategic agenda Our Pillars • Accelerated growth in new revenue 1 Company streams • Enhanced customer experience 2 Customer Our • Enhanced technology & digitisation Strategic Drivers agenda 3 Colleagues • Empowered communities around us 4 Citizenship • Continued building br
Slide 7: We accelerated growth in new revenue streams…
We accelerated growth in new revenue streams… • Accelerated Bancassurance progress • Growth supported by launch of Mortgage & Asset Finance centres of excellence • Revamped Agri-business proposition • Focused engagement & growth in large local corporate • Reinforced our commitment to SME sector 7 |
Slide 8: …while unlocking potential in our youth and women
…while unlocking potential in our youth and women • Focused lending to women • Accelerated Innovation agenda • Launched Ready2work • Partnership with ITC to support SME (International Trade Centre) • Launched youth ‘Agripreneurship’ program 8 | Barclays Kenya 2015 Financial Year Results Announcement
Slide 9: Customer centricity remains core to our business…
Customer centricity remains core to our business… • Installed Queue management system • Intelligent ATMs; largest network • Focused customer engagements • Customer centric distribution model • Alternate digital channels 9 | Barclays Kenya 2015 Financial Year Results Announcement | 4 th March 2016
Slide 10: …as we reinforce our brand as the 'Go-To' bank
…as we reinforce our brand as the ‘Go-To’ bank 10 | Barclays Kenya 2015 Financial Year Results Announcement | 4 th March 2016
Slide 11: Yusuf Omari, Barclays Kenya Chief Financial Officer
Signposting Yusuf Omari Barclays Kenya Chief Financial Officer
Slide 12: Strong growth in lending across all segments…
Strong growth in lending across all segments… Net Customer assets (Kes bn) Loans by segment Total bank Segment contribution 145 +12% 145 125 125 +16% 118 Corporate Banking 25% 104 Business Banking 27% Consumer Banking 9% 2012 2013 2014 2015 2014 2015 12 | Barclays Kenya 2015 Results Announcement | 4
Slide 13: …with highest growth coming in the second half
…with highest growth coming in the second half Net Customer assets (Kes bn) – Quarter on Quarter Growth 16% +6bn +5bn + 9bn 145 -128m 139 134 125 125 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 13 | Barclays Kenya 2015 Results Announcement | 4th March 2016
Slide 14: Prudence in booking impairment
Prudence in booking impairment Net Loan Book (Kes Bn) Average Loss Rate (%) Non Performing Loans Ratio Loan Loss Rate Net Loans Kes bn % 150 145 2.0 4.8% 125 118 104 3.5% 3.6% 100 1.2% 1.1% 1.0% 2.9% 1.0 50 0.1% 0 0.0 2012 2013 2014 2015 2012 2013 2014 2015 NPL Coverage Ratio Industry at 5.4% 69% 80
Slide 15: Changing mix in deposit structure
Changing mix in deposit structure Deposits by segment (Kes bn) Deposits Split (%) 165 165 100 100 10% Corporate Banking 13% Business Banking CASA 77 79 Consumer Banking 10% Term deposits 23 21 2014 2015 2014 2015 15 | Barclays Kenya 2015 Results Announcement | 4th March 2016
Slide 16: Growth in non-interest income picking up
Growth in non-interest income picking up 9,063 8,684 9,061 -4% +4% 2013 2014 2015 Non Interest Income (Kes m) Growth10.2% in NFI at 4.2% (2014: -4.1%): • Bancassurance – New revenue stream • Fees and commissions69.3%from growth in lending 69.3% • However impacted by losses in the trading book-from a
Slide 17: Strong capital while utilising liquidity for lending growth
Strong capital while utilising liquidity for lending growth ..combined with improved capital structure High liquidity buffers, from Tier II capital injection 44% Core Capital Ratios Total Capital Ratios 18.4% 34% 16.0% 3.9% 24% 15.7% 15.7% 1.5% 14% 5.2% 5.2% 14.5% 14.5% 10.5% 20% 20% 10.5% 2014 2015
Slide 18: We have continued to invest for future growth whilst driving efficiency
We have continued to invest for future growth whilst driving efficiency 3% Efficiency from : 14,256 15,566 14,590 15,622 • Investments in technology -E-statement, 7% -Paperless Banking • Customer centric channels -Intelligent ATMs, 52.0% 53.0% 52.0% 53.0% -Internet banking, -Mobile banking 2012 2013
Slide 19: Volatility impacted overall performance
Volatility impacted overall performance Kes million 2014 2015 % Change Interest Received 22,941 25,286 10% Interest Paid (3,337) (4,875) 46% Net Interest Income 19,604 20,411 4% Non Interest Income 8,684 9,051 4% Total Income 28,288 29,462 4% Costs (14,590) (15,622) 7% Impairment (1,405) (1,766) 26%
Slide 20: Dividends per share maintained at Kes 1.0 per share
Dividends per share maintained at Kes 1.0 per share Dividends 2014 2015 Interim Dividend per share (Kes) - 0.2 Final Dividend per share (Kes) 1.0 0.8 Total Dividend per share (Kes) 1.0 1.0 Total Dividends (Kes million) 5,432 5,432 Earnings Per Share (Kes) 1.5 1.6 20 | Barclays Kenya 2015 Results Ann
Slide 21: Outlook
YEARS IN KENYA Proud sponsors of potential since 1916 Outlook ® BARCLAYS
Slide 22: As we look forward, we are expanding our horizon
As we look forward, we are expanding our horizon • Launched Agency Banking • SME, Women and Youth focus • Deliver Innovation agenda • Launch Stock Brokerage • Drive simplification agenda • Continued focus on service excellence 22 | Barclays Kenya 2015 Financial Year Results Announcement | 4 th March
Slide 23: Our goal to be the 'Go-to' bank is unchanged
Our goal to be the ‘Go-to’ bank is unchanged • Our future is very bright and our strategy remains unchanged • Our focus still remains; SME, Innovation, Youth and Gender • We will continue to enhance customer propositions • We will continue to grow our existing business 23 | Barclays Kenya 2015 Finan
Slide 24: #® BARCLAYS
#® BARCLAYS
Slide 25: Update on recent Barclays PLC announcement on Africa
Update on recent Barclays PLC announcement on Africa BAGL – Barclays Africa Group Limited • Created in 2013 (Initially ABSA) Who is BAGL • Prior to 2013 Barclays PLC owned 56.4% of ABSA and 68.5% of BBK • In 2013, Barclays PLC ownership in BAGL increased from 56.4% to 62.3% • From 2013, 68.5% of BBK
Slide 26: Q & A
YEARS IN KENYA Proud sponsors of potential since 1916 Q&A @ BARCLAYS
Slide 27: Disclaimer
Disclaimer Forward-looking statements Certain statements in this document are forward looking that relate to, among other things, the plans, objectives, goals, strategies, future operations and performance of Barclays Bank of Kenya. Words such as “anticipates”, “estimates”, “expects”, “projects”, “b