Stanbic Holdings Plc · NSEKE:SBIC
Stanbic — H1 2024 Earnings Presentation
24 slides from Stanbic's earnings presentation, Aug 8, 2024
Slide 1: Stanbic Holdings Plc 1H 2024 Investor Presentation
STANBIC HOLDINGS PLC 1H 2024 INVESTOR PRESENTATION 8th August 2024
Slide 2: Contents
Contents 01 Chairman’s 02 Operating 03 Anchoring 04 Financial Remarks Environment our Strategy Outcome 1H 2024
Slide 3: Chairman's Remarks
01 .Chairman’s Remarks1 KES INTERIM 1.84 DIVIDEND PER SHARE JUNE 2023: KES 1.15 60% Joe Muganda Chairman, Stanbic Holdings Plc
Slide 4: Operating Environment
02. Operating Environment 21.0% RETURN ON EQUITY JUNE 2023: 20.5% 50bps Patrick Mweheire Group Chief Executive, Stanbic Holdings Plc
Slide 5: Macro Economic Environment: Global & Regional Perspective
Macro Economic Environment : Global & Regional Perspective USA Eurozone 5.8% Global Landscape 5.4% 5.4% 5.1% 4.9% 4.5% 4.5% 4.5% 5.2% 4.3% Resilient economic growth and continued disinflation 4.0% pointing towards optimistic growth trajectory amidst 4.3% 3.2% 3.7% 3.4% 3.5% 2.9% 2.4% 2.5% geopolitic
Slide 6: Macro Economic Environment: Kenya
Macro Economic Environment: Kenya Resilient Economy Private Sector Credit Growth /NPLs/Stanbic PMI Elevated Interest Rates • Kenya’s economy grew by 5.0% year-on- • High interest rates hampering private sector credit year in 1H of 2024, down slightly from the growth. 5.4% growth in the same period l
Slide 7: Our 2024 - 2026 Strategy
Our 2024 - 2026 Strategy OUR PURPOSE OUR VISION Kenya / South Sudan is our To be a leading financial services organisation in Kenya and South home, we drive her growth Sudan, delivering exceptional client experiences and superior value STRATEGIC PRIORITIES Drive 1 Transform Client Experience 2 Execu
Slide 8: Measuring Our Progress Against 2026 Strategic Targets
Measuring Our Progress Against 2026 Strategic Targets 2026 14 -16% +50 41- 43% <9% 23-25% Target Revenue Growth CAGR NPS SCORE Cost-To-Income Ratio NPL RATIO Return On Equity 24% - ROE 38% +50 – NPS 21.0% 20.5% 41 48.2% 9.5% 38 9.4% 15.8% 23% 9.3% 42% – CTI 25 <9% - NPL 15% -CAGR 41.6% 40.4% 1H 2022
Slide 9: Anchoring Our Strategy
03. Anchoring Strategy Our BALANCE SHEET GROWTH KES 498bn June 2023: KES 384bn 30% Dr. Jo sh ua Oig ara Chief Executive, Stanbic Bank Kenya & South Sudan
Slide 10: Our Footprint
Our Footprint Customers / Distribution Channels Branch Network Self-Service Sites Customer Numbers 1H 2024 1H 2024 2 30 10 3 1H 2023 1H 2023 18% 28 7 1H 2024 ATMs Cash Deposit Machines 284,555 2 1H 2023 1H 2024 1H 2024 4 241,521 54 76 1H 2023 1H 2023 52 70 1H 2024 231 Active Agents 10 1H 2023 221
Slide 11: Recap of Our Strategy
Recap of Our Strategy OUR PURPOSE OUR VISION Kenya / South Sudan is our To be a leading financial services organisation in Kenya and South home, we drive her growth Sudan, delivering exceptional client experiences and superior value Drive Strategic Priorities 1 Transform Client Experience 2 Execute
Slide 12: Anchoring our Strategy: Transforming Client Experience in 1H 2024
Anchoring our Strategy: Transforming Client Experience in 1H 2024 D.A.D.A (WOMEN AGRICULTURAL SECTOR INDUSTRIAL SECTOR EMPOWERMENT) Food Security/ Job Creation/ Stronger Societies through women Supporting Industrial growth and Empowerment • KES 4.9bn loans approved job creation • KES 7.1bn loans app
Slide 13: Anchoring our Strategy: Executing with Excellence in 1H 2024
Anchoring our Strategy: Executing with Excellence in 1H 2024 EMPLOYEE ENGAGEMENT OPERATIONAL EXCELLENCE NEW SOLUTIONS/UPGRADES MANAGING RISK Diversity & Inclusion Mjeki Omni-channel Macro-economic Male : Female – 52%:48% Instant loans: Kes 16bn Enhanced mobile App with Elevated credit risk Different
Slide 14: Anchoring our Strategy: Driving Sustainable Growth and Value
Anchoring our Strategy: Driving Sustainable Growth and Value FINANCIAL INCLUSION EDUCATION RENEWABLE ENERGY Catalytic Funding School Feeding program EV & clean Energy Investments • Launched Cohort V grant • School feeding program at • Electric forklifts worth KES 215m competition – USD 900K Gatina P
Slide 15: Brand Recognition – Trusted Financial Partner in 1H 2024
Brand Recognition – Trusted Financial Partner in 1H 2024 February 2024 May 2024 Best Investment Best Bank to Borrow From Bank in Kenya in Kenya EMEA Finance Africa Think Business Banking Banking Awards Awards April 2024 March 2024 Best Impact Investing Best International Private Initiative Bank Keny
Slide 16: Delivering Sustainable Returns
04. Delivering Sustainable Returns PROFIT AFTER TAX KES 7.2bn June 2023: KES 7.1bn 2% Dennis Musau Chief Financial and Value Officer
Slide 17: 1H 2024: Income Statement Highlights
1H 2024 : Income Statement Highlights Key Ratios Net Interest Margin 2023:2024 – 6.2% : 5.5% Revenue Growth Operating Costs Impairments Profit after Tax (4%) 7% 22% 2% Credit Loss Ratio 2023:2024 – 2.2% : 1.3% 1H 2024: 1H 2024: 1H 2024: 1H 2024: Return on Equity KES 20.1b KES 8.1b KES 2.0b KES 7.2b
Slide 18: 1H 2024: Income Statement Summary
1H 2024 : Income Statement Summary Key Highlights Jun-24 Jun-23 The Group reported a profit after tax of KES 7.2b; % Change KES m KES m Improvement in Net Interest Income on the back of growth in the average lending book and higher Net interest income 12,553 12,051 4% assets yield. Non-interest reven
Slide 19: 1H 2024: Balance Sheet Highlights
1H 2024 : Balance Sheet Highlights Key Ratios NPL Ratio Gross Non-Performing Total Assets Customer Loans Customer Deposits Loans 2023:2024 – 9.18% : 9.44% 30% (2%) 39% (2.5%) Loan to Deposit Ratio 2023:2024 – 77% : 66% 1H 2024: 1H 2024: 1H 2024: 1H 2024: Total Capital Ratio KES 498b KES 239b KES 360
Slide 20: 1H 2024: Balance Sheet Summary
1H 2024 : Balance Sheet Summary KES millions 1H 2024 1H 2023 Change % Key Highlights Assets Decline in loans and advances to customers mainly driven by appreciation of KES against the Financial investments 74,600 54,726 36% major currencies between March Loans and advances to banks 122,557 37,353 >1
Slide 21: Subsidiaries and Branch Performance
Subsidiaries and Branch Performance Stanbic Holdings Plc 2% Growth PAT: KES 7.2bn Stanbic Bank (South Stanbic Bank (Kenya Stanbic Bancassurance Sudan Branch Intermediary Limited SBG SBGSecurities SecuritiesLimited Limited Operations) Operations) 1H 2024 Growth 1H 2024 Growth 1H 2024 Growth 1H 2024 G
Slide 22: Key Takeaways
Key Takeaways + + + = + Strong performance across Operational efficiencies from revenue lines digital transformation Increased shareholder return Navigated market challenges to Focused risk management Sustainable community deliver strong balance sheet amidst challenging economic engagement growth en
Slide 23: Q&A
Slide 24: Thank You
THANK YOU