Slide 1: Zenith Bank Plc Group Results for 3 Months Ended March 31, 2011
ZENITH BANK PLC GROUP RESULTS For 3 Months Ended March 31, 2011
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 under the historical cost convention
Slide 3: Agenda
Agenda Operating Environment Results Group By Segment By Geography Company Risk Management & Strategy Strategy & Outlook 3
Slide 4: Agenda
Agenda Operating Environment Results Group By Segment By Geography Company Risk Management & Strategy Strategy & Outlook 4
Slide 5: The Nigerian Economy
The Nigerian Economy … GDP growth: Given the estimated real gross domestic product of 7.43% in the first quarter of 2011 (compared to Q1’10 figure of 7.36%), the non-oil sector remained the major driver of overall growth. Our Bank leveraged on the various economic Key growth indices to boost its rev
Slide 6: The Banking Industry
The Banking Industry Extension of Guarantee on all Interbank Transactions. The CBN guarantee on all interbank transactions, foreign Key credit lines and pension fund placements with banks was extended by three months from June 30, 2011 to September Theme 30, 2011 in a bid to allow for the full and c
Slide 7: Agenda
Agenda Operating Environment Results Group By Segment By Geography Company Risk Management & Strategy Strategy & Outlook 7
Slide 8: Financial Highlights
Financial Highlights • Robust income base Key Theme Key Theme • Positive outlook for the rest of the year • Continued superior performance • Gross Earnings: N54bn ………………………………….. ‐1.4% YoY • Net Interest Income: N28bn …………………………… +41% YoY P&L • Net Interest Margin: 1.74% ……………………………. +29% YoY • PBT:
Slide 9: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 3 mths to 3 mths to YOY Mar-11 Mar-10 Change Gross Income 54,257 55, 030 -1.40% Interest Income 36,321 38,476 -6.0% Interest Expense 7,527 18,122 -58.0% Net Interest Income 28,794 20,354 41.0% Foreign Exchange Trading Income 3,000 2,898 4.0% Underwriting Pro
Slide 10: Revenue Base Sustained Diversification
Revenue Base …Sustained Diversification Q1 2011 Interest Income Q1PBT 2010 Q1 2011 Non-Interest Income Q1 2010 10
Slide 11: Continuous efforts in cost-reduction strategies
Continuous efforts in cost-reduction strategies ….. Q1 2011 Interest Expenses Q1 2010 Significantly reduced funding costs from Current accounts Q1 2011 Operating Expenses Q1 2010 11
Slide 12: Balance Sheet - Assets
Balance Sheet- Assets Group Group Group (N'm) Mar-11 Dec - 10 Mar-10 Cash and balances with central banks 116,131 141,724 302,606 Treasury bills 409,913 298,869 257,755 Due from other banks 333,605 399,503 295,102 Loans and advances 784,573 713,285 642,619 On-lending facilities 24,549 22,536 - Advan
Slide 13: Balance Sheet - Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group Group (N'm) Mar-11 Dec - 10 Mar-10 Customer deposits 1,435,695 1,318,072 1,323,793 Claims Payable 219 218 65 Liabilities on insurance contracts 2,443 2,287 2,197 On-lending facilities 28,613 26,049 - Borrowings 26,251 27,975 27,702 Current income tax 6
Slide 14: Consolidating on our balance sheet quality and strength
Consolidating on our balance sheet quality and strength.. Q1 2011 Loans & Advances Q1 2010 Q1 2011 Deposits Q1 2010 14
Slide 15: Continued market dominance through strong liquid asset base and funding mix
Continued market dominance through strong liquid asset base and funding mix… Q1 2011 Liquid Assets Q1 2010 Q1 2011 Funding Mix Q1 2010 15
Slide 16: Key Takeaways from Q1 2011 Performance
Key Takeaways from Q1 2011 Performance… Deeper & broader Capital and liquidity ratios remain relationships strong . Continuing growth in deposits. Good progress on customer franchise. Diversified revenue streams Dividends of sustained investment in ICT Continued focus on strong liquidity and capital
Slide 17: Agenda
Agenda Operating Environment Results Group By Segment By Geography Company Risk Management & Strategy Strategy & Outlook 17
Slide 18: P&L - By Segment
P&L- By Segment Investment General Health Corporate & Mgmt & & Life 3 Months Ended Mar 2011 (N’m) Retail Banking Stockbroking Insurance Others Consolidated Revenue Derived From External 50,387 522 2,826 522 54,257 Customers Revenue Derived From Other Business 2 71 102 254 - Segments Total Revenue 50
Slide 19: P&L - By Segment
P&L – By Segment Gross Revenue by Segment – Mar ‘11 Gross Revenue by Segment – Mar ‘10 Corporate Banking continues to be the hub of our business … 19
Slide 20: Agenda
Agenda Operating Environment Results Group By Segment By Geography Company Risk Management & Strategy Strategy & Outlook 20
Slide 21: P&L - By Geography
P&L- By Geography 3 Months Ended Mar 2011 (N’m) Nigeria Rest of Africa Europe Consolidated Revenue Derived From External Customers 50,366 3,106 785 54,257 Revenue Derived From Other Business 429 - - - Segments Total Revenue 50,795 3,106 785 54,257 Operating Expenses 34,190 1,846 490 36,097 Profit Be
Slide 22: P&L - By Geography
P&L – By Geography Gross Revenue by Geography – Mar ‘11 Gross Revenue by Geography – Mar ‘10 Our Nigerian business continues to be the main driver of profitability … providing Our Nigerian business continues 93% to be the of gross main revenue driver of profitability … providing 92.88% of gross reve
Slide 23: Agenda
Agenda Operating Environment Results Group By Segment By Geography Company Risk Management & Strategy Strategy & Outlook 23
Slide 24: Our Risk Management Strategy
Healthy Risk Assets Portfolio… Loan to Deposit Ratio Our Risk Management Strategy Conservative LTD ratio providing adequate room for future expansions Continuing to identify all risk exposures, threats and opportunities which are then managed with appropriate processes in line with best practices an
Slide 25: Focused risk management via portfolio diversification
Focused risk management via portfolio diversification Loans by Sector – Mar ‘11 No concentration risk with no sector above 10% 25
Slide 26: 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 – predominantly made up of Tier 1 capital. 26
Slide 27: Agenda
Agenda Operating Environment Results Group By Segment By Geography Company Risk Management & Strategy Strategy & Outlook 27
Slide 28: Leveraging our brand for greater efficiency
Leveraging our brand for greater efficiency …. o Process review and realignment to enhance efficiency in our operations. o Collaboration with other industry players in shared services. o Developing more electronic platforms to further improve efficiency COST EFFICIENCY o Optimal use of resources by
Slide 29: Well positioned to increase market share
Well positioned to increase market share …. Strong capitalization and Cheap demand and savings liquidity with sustained capital accounts deposit and liquidity ratios well above mobilization through our industry requirements extensive branch network working to push up NIM Adequate protection against
Slide 30: Strategic Objectives Beyond 2011
Strategic Objectives …… Beyond 2011 Key • Grow assets with • Curtail cost to income ratio by maintaining Theme reasonable quality and efficient resource increase our market allocation and utilization share. control. • Continue to uphold and • ROE to gradually preserve our liquidity move to pre-2008