Zenith Bank Plc · NSENG:ZENITHBANK
Zenith Bank — Stanbic IBTC International Investors Conference 2010
28 slides from Zenith Bank's conference presentation, March 2010
Slide 1: Zenith Bank Plc
Zenith Bank Plc Presentation at Stanbic IBTC International Investors Conference The Zenith Story – Letting the Numbers Speak for Themselves March 2010
Slide 2: Outline
Outline Introduction Behind the Numbers Profile of Zenith Bank Plc Financial Highlights The Future Outlook – Our Vision, Your Bank
Slide 3: Introduction
Introduction
Slide 4: Stronghold balance sheet supporting superior earnings capability
Stronghold balance sheet supporting superior earnings capability Stronghold Total assets N1,7trn balance sheet 60% Loan to Deposit Ratio Largest capital & reserves in industry – N332bn N 199 bn Gross Earnings +19% YoY Significant N98 bn Net Interest Income +39% YoY earning power N16 bn PAT -53% YoY
Slide 5: Launched
A world-class brand offering our clients the full suite of banking and financial solutions January 2010 Launched
Slide 6: Competitive Advantages
Competitive Advantages Highly motivated Exceptional customer service Intellectual capital Lead in corporate market and new Stable management People Service generation entrepreneurs Corporate Governance Strong presence in main financial centres with Focus on quality Technology wide distribution Focus
Slide 7: Our Ratings
Our Ratings Fitch Ratings – “B+” (2009 – international) The Positive Outlook for the Long-term IDR reflects Zenith's strong and growing domestic franchise, consistently good financial performance and low levels of non-performing loans” S&P Rating – “BB-” (2009 - international) “The ratings are suppo
Slide 8: Behind the Numbers
Behind the Numbers
Slide 9: Despite a difficult operating climate, Q3 posted positive results
Despite a difficult operating climate, Q3 posted positive results Strong Gross Revenue Growth TRANSLATING TO…… Robust Profit Before Tax
Slide 10: Increasingly diversified revenue streams as the Bank increases its array of financial solutions
Increasingly diversified revenue streams as the Bank increases its array of financial solutions to its blue-chip customer base Interest Income Non-Interest Income
Slide 11: Balancing cost effectiveness without impact on service delivery
Balancing cost effectiveness without impact on service delivery Declining Cost Income Ratio Positive “jaw” as operational efficiencies feed through to both income and expenses
Slide 12: Driving competitive advantage through balance sheet quality and strength
Driving competitive advantage through balance sheet quality and strength
Slide 13: Steady growth in core activities
Steady growth in core activities Growth in Loans …across a variety of instruments…
Slide 14: … across diversified sectors of top-tier clients
… across diversified sectors of top-tier clients
Slide 15: Continued growth trajectory across the cycles
Continued growth trajectory across the cycles 2002 2003 2004 2005 2006 2007 2008 2009 Interest Rates Credit Spreads GDP Growth Inflation Oil Price Exchange Rate
Slide 16: Maintaining profitability through a difficult economic climate
Maintaining profitability through a difficult economic climate Nbn +19% -50% +41% % change Q on Q
Slide 17: A sample of our blue-chip client base
A sample of our blue-chip client base
Slide 18: The Future Outlook - Our Vision, Your Bank
The Future Outlook - Our Vision, Your Bank
Slide 19: Navigating the business through the downturn and positioning for upturn
Navigating the business through the downturn and positioning for upturn Continued Improved Greater Diversified focus on Positive corporate asset business strong jaws governance liability lines capital framework matching adequacy
Slide 20: Growth opportunities
Growth opportunities Significant opportunities exist to By meet the funding gaps in power, sector infrastructure, telecoms Diversification by business lines By and geography e.g. Zenith business Insurance, Zenith Bank UK By Approx 60% of Nigerian distribution population still unbanked Information &
Slide 21: Clearly defined strategic objectives
Clearly defined strategic objectives Maintain the Zenith brand as a reputable international financial services network recognised for innovation, superior customer service whilst creating premium value for all stakeholders Maintain position as leading Expand domestically with service provider in Nig
Slide 22: Proposed bond offering to enhance competitive advantage and ensure better asset-liability matching
Proposed bond offering to enhance competitive advantage and ensure better asset-liability matching Key Features Size N300 billion Tenor 5 years Currency Naira Listing Nigerian Stock Exchange Use of Proceeds • Asset/liability matching • Increased ability to lend medium term • Big-ticket transactions
Slide 23: Conclusions
Conclusions Strong relative performance against peers driven by conservative approach Top-line growth highlighting underlying business franchise momentum Maintenance of low NPL ratio despite market turmoil Solid business plan ensures robust performance across the business cycles Business continuity
Slide 24: Appendix: External viewpoints
Appendix: External viewpoints
Slide 25: Zenith Bank in the News
Zenith Bank in the News Nigerian Equity Market: Zenith Bank Shares Advance Nigeria's Zenith Plans 300 Bn Naira Capital Raising 218th Strongest Bank in the World Ranked 21st Highest Real Profits Growth
Slide 26: Zenith Bank – Independent Research Reports
Zenith Bank – Independent Research Reports We maintain Zenith as our top pick based on compelling valuations (+49% to Oct-10 PT) and its strong position to consolidate the sector. There are big gaps between the haves and the have-nots. Equity concentration post-audit will be very high. The big- four
Slide 27: A Sample of Our Awards
A Sample of Our Awards Quoted Company of the Year (2007) Best Global Bank (2008) Nigerian Stock Exchange African Banker Africa’s Bank of the Year (2007) Africa Investor Corporate Citizen of the Year (2008) This Day Award of Excellence Most Respected Bank in Nigeria PriceWaterhouseCoopers Bank of the
Slide 28: Thank You
Thank You www.zenithbank.com …in your best interest
Zenith Bank — Stanbic IBTC International Investors Conference 2010 on 6ix