Slide 1: FY 2012 Group Results
FY 2012 Group Results Click to edit Master title style Presentation to Investors & Analysts IFRS Compliant Results December 2012 Click to edit Master subtitle style people | technology | service
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 in accordance with the International
Slide 3: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 7 Results - Group Speaker: Executive Director/Chief Financial Officer Udom Emmanuel Slides 9- 19 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter
Slide 4: The Nigerian Economy
The Nigerian Economy … GDP Growth: Foreign Reserves: Key The GDP grew at the rate of 6.99% in Q4 2012, down Nigeria's foreign reserves rose to record highs in the last Themeby 77 bps from 7.76% recorded in the corresponding quarter of 2012. quarter of the previous fiscal year. The figure stood at $4
Slide 5: Pertinent Development in the Banking Industry
Pertinent Development in the Banking Industry Description Effect on Zenith Bank 1 Tax Exemption on investment in Government •Zenith bank is experiencing a significant reduction Securities in tax charge due to huge investments in Effective 2012 and for the next 10 years, income government securities.
Slide 6: Basis of Tax Charge in 2012 Financial Statements
Basis of Tax Charge in 2012 Financial Statements During the 2012 financial year, the Group had a total tax charge of N1.42 billion representing about N17.3 billion reductions from prior period charge of N18.7 billion. The significant reduction in the tax charge was due to the tax credit which the ba
Slide 7: Our Investment Proposition
Our Investment Proposition Strong earnings capacity, Solid capital adequacy, High liquidity, Declining Key NPLs, Excellent technology and Well-motivated staff Theme Listing on London Exchange: Zenith Bank has listed a non-capital raising GDR on the London Stock Exchange on 21st of March, 2013. The l
Slide 8: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 7 Results - Group Speaker: Executive Director/Chief Financial Officer Udom Emmanuel Slides 9 - 19 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter
Slide 9: Financial Highlights
Financial Highlights Increased Efficiency Through Optimal Resource Allocation Key Building A Shock-Proof Balance Sheet Theme Gross Earnings: N307.08bn +25.88% YoY Net Interest Income: N156.76bn +22.19% YoY Net Interest Margin: 8.19% +5.68% YoY P&L PBT: N102.10bn +51.39% YoY PAT: N100.68bn +106.72% Y
Slide 10: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 12 mths to 12 mths to YOY Dec-12 Dec-11 Change Gross Income 307,082 243,948 25.88% Continuing Operations: Interest Income 221,318 163,192 35.62% Interest Expense -64,561 -34,906 84.96% Net Interest Income 156,757 128,286 22.19% Impairment Charge for Credit L
Slide 11: Strengthening earnings and profitability
Strengthening earnings and profitability... Comments Rising Net Interest Margin 10% 9% 8.19% 7.75% 8% 6.93% Net Interest Margin (NIM): NIM has been on an increase 7% 6.51% 6.34% over the last three years. The Group maintained a strong 6% 5% NIM through an efficient balance sheet management. 4% 3% Op
Slide 12: Revenue Base ...Sustained Diversification
Revenue Base …Sustained Diversification 2012 2011 Placements Interest Income Placements 2.3% PBT 6.3% T-Bills & Inv. T-Bills & Inv. Securities Securities N'million 2012 2011 YoY 24.3% 33.6% Placements 5,031 10,276 -51% T-Bills & Inv. Securities 74,364 39,590 88% Government Bonds 27,274 20,040 36% Lo
Slide 13: Continuous efforts in cost-reduction strategies
Continuous efforts in cost-reduction strategies ….. 2011 2012 Interest Expenses Borrowed Current Borrowed Inter- funds accounts Inter-bank funds Current bank 2.3% 6.8% takings 1.1% accounts N'million 2012 2011 YoY takings Savings 0.8% 5.9% Savings Current accounts 3,828 2,383 61% 0.5% accounts accou
Slide 14: Balance Sheet- Assets
Balance Sheet- Assets Group Group YOY (N'm) Dec-12 Dec-11 Change Cash and balances with central banks 332,515 223,187 48.98% Treasury bills 669,164 510,738 31.02% Due from other banks 182,020 234,521 -22.39% Loans and advances 989,814 893,834 10.74% Investment securities 299,343 308,231 -2.88% Inves
Slide 15: Balance Sheet- Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group YOY (N'm) Dec-12 Dec-11 Change Customers deposits 1,929,244 1,655,458 16.54% Current income tax 6,577 13,348 -50.73% Deferred income tax liabilities 5,584 10,742 -48.02% Other liabilities 117,355 152,836 -23.22% On-lending facilities 56,066 49,370 13.5
Slide 16: Sustained assets & liabilities match
Sustained assets & liabilities match.. Loans Growth Loans & Advances 2012 Advances On-lending under 1,200 facilities finance lease 5.3% 1,014.5 1.7% 920.6 800 747.5 746.1 Overdrafts 26.7% Term Loans N'bn 469.1 66.3% 400 0 2008 2009 2010 2011 2012 Customer Deposits Deposits Mix 2012 Domicilliary 1,92
Slide 17: Continued market dominance through strong liquid asset base and funding mix
Continued market dominance through strong liquid asset base and funding mix… 2012 2011 Liquid Assets Current balances Total – N1.18tr with banks Treasury bills Current balances Total – N0.97tr within Nig. 56.5% with banks 0.5% Treasury bills within Nig. 52.7% Current balances 0.7% with banks outside
Slide 18: Other Assets
Other Assets Investment Securities 25.0 Gross Other Assets Equity 2012 Equity securities 2011 securities 20.0 3.1% 3.0% 15.0 Prepayments N299bn N308bn 10.0 Other receivables Debt 5.0 securities 96.9% Debt securities 0.0 97.0% 2012 2011 Assets Classified as Held for Sale 2011 Property and equipment D
Slide 19: Other Liabilities
Other Liabilities Other Liabilities Borrowings 2012 2011 2012 2011 Due to Due to Due to Due to Customer PEFCO KEXIM PEFCO FMO deposits 2.1% Due to 7.8% for letters Customer 4.5% 1.2% PROPARCO of credit deposits Due to 19.1% 33% for letters of credit PROPARCO 29% 14.4% N117bn N15.14bn Due to EIB 0.6%
Slide 20: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 7 Results - Group Speaker: Executive Director/Chief Financial Officer Udom Emmanuel Slides 9 - 19 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter
Slide 21: P&L – By Segment
P&L – By Segment Discontinued 12 Months Ended Dec 2012 (N’m) Corporate Institutional Public Retail Consolidated Operations Total Revenue 168,745 56,350 57,523 13,591 10,873 307,082 Total Expenses -111,840 -37,902 -38,690 -9,005 -7,544 -204,981 Profit Before Tax 56,905 18,449 18,833 4,586 3,329 102,1
Slide 22: P&L – By Segment
P&L – By Segment Gross Revenue by Segment – 2012 Gross Revenue by Segment - 2011 Discontinued Retail Operations Retail Discontinued 4.41% 3.88% 5.45% Operations Public Public 5.44% 18.67% 18.11% Institutional Corporate 17.74% 53.25% Institutional Corporate 18.29% 54.76% Definition Corporate: Multina
Slide 23: P&L – By Geography
P&L – By Geography 12 Months Ended Dec 2012 (N’m) Nigeria Rest of Africa Europe Eliminations Consolidated Total Revenue 293,205 13,591 5,281 -4,995 307,082 Share of profit of Associates - - - 23 23 Total Expense -197,253 -9,005 -3,741 4,995 -205,004 Profit Before Tax 95,975 4,586 1,540 23 102,101 Ta
Slide 24: P&L – By Geography
P&L – By Geography Gross Revenue by Geography –2012 Gross Revenue by Geography – 2011 Nigeria Nigeria 93.95% 93.04% Europe 1.69% Rest of Europe Africa 1.59% Rest of 4.36% Africa 5.38% Our Nigerian business continues to be the main driver of profitability … providing Our Nigerian business continues 9
Slide 25: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 7 Results - Group Speaker: Executive Director/Chief Financial Officer Udom Emmanuel Slides 9 - 19 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter
Slide 26: Healthy Risk Assets Portfolio
Healthy Risk Assets Portfolio… NPL Coverage Ratio Our Risk Management Strategy 160% 144.17% 140% 120% 101.57% 100% The group adopts a complete and integrated approach to risk 74.01% 77.39% management that is driven from the Board level to the operational 80% activities of the bank. Ratio 60% 44.82%
Slide 27: Focused risk management via portfolio diversification
Focused risk management via portfolio diversification Loans by Sector – 2012 Loans by Sector – 2011 Finance and Power Power Education Agriculture Insurance 0.41% Education Agriculture 2.39% 0.13% Finance and Government 6.16% 2.78% 0.20% 3.30% Insurance 8.05% Government Other Public 1.96% Manufacturi
Slide 28: NPL by Segment
NPL by Segment NPL by Industry – 2012 NPL by Segment – 2011 Others Agriculture Others Agriculture Oil & Gas 8% 3% 0.2% 2.0% General General 6.5% Commerce Oil & Gas Commerce 13% 15% 22.8% Education 3% Capital Market Communication Capital Market 18% Education 3% 25.1% Transportation 3.0% 6% Communicat
Slide 29: Strong Capitalization and Liquidity
Strong Capitalization and Liquidity Liquidity and Capital Adequacy 70% 64% 61% 57% 59% 60% 50% Capital and liquidity 40% 34% 36% 29% 31% ratios for the Bank – well 30% above industry % 20% 10% requirements. 0% -10% 2009 2010 2011 2012 Liquidity Capital Adequacy Capital Mix 100% 98.20% 99.53% 99.66%
Slide 30: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 7 Results - Group Speaker: Executive Director/Chief Financial Officer Udom Emmanuel Slides 9 - 19 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter
Slide 31: Strategies for driving our vision
Strategies for driving our vision 1 The Bank focuses on cost 2 The Bank accomplishes this Compete effective deposits from the strategy by: aggressively for retail end of the market to lend Consistent focus and market share, but focus on high to the corporate end with Delivering superior investment i
Slide 32: Our Key Growth Target Sectors
Our Key Growth Target Sectors Driving profitability with our competitive advantages Sector Identified Growth Competitive Advantage Sectors Business line & Geography Infrastructure Strong capital and liquidity Manufacturing Strong brand Oil and Gas (Upstream & Strong international rating Downstream)
Slide 33: Outlook and Prospects for FY2013
Outlook and Prospects for FY2013 Mobile Banking: In a bid to encourage and promote person- Agriculture: The Federal government’s resolve to boost the agricultural sector in the country would no doubt create quite to-person payments and leverage on mobile phone channels as a number of opportunities i
Slide 34: Outlook and Prospects for FY2013
Outlook and Prospects for FY2013 Representative Office: We have officially opened a Deposit Base: Our drive for low cost and appropriately representative office in Beijing, the capital city of the Peoples mixed deposit base to fund our credit and money market Republic of China. The group is certain
Slide 35: Thank you
Q&A Thank you 32