Stanbic Holdings Plc · NSEKE:SBIC
Stanbic — FY2017 Earnings Presentation
32 slides from Stanbic's earnings presentation, 2018
Slide 1: Stanbic Holdings Plc
Stanbic Holdings Plc Financial performance for the year ended 31 December 2017 Financial results presentation / slide 1 /
Slide 2: Agenda
Section Page 1. Welcome and remarks 3 2. Full year review 4 3. Detailed financial analysis 7 4. Corporate and Investment Banking (CIB) 16 5. Personal and Business Banking (PBB) 19 6. Wealth 22 7. Stanbic Insurance Agency Limited (SIAL) 26 8. SBG Securities (SBGS) 29 Q&A Financial results presentatio
Slide 3: Welcome and remarks
Welcome and remarks Financial results presentation / slide 3 /
Slide 4: Full year review
Full year review Charles Mudiwa Chief Executive, Stanbic Bank Financial results presentation / slide 4 /
Slide 5: Operating environment
Operating environment 14.0% Licensing of new banks (Dubai Islamic bank and 12.0% Mayfair bank) FED increases Launch 10.0% interest rates of SGR to 0.75% 8.0% 6.0% FED SA avoids increases downgrade Pesa link launch interest 4.0% rates to 1.25% 2.0% Trump elected Drop in as US Commencement Presidentia
Slide 6: Results highlights
Results highlights The Group (Kenya Bank, South Sudan branch, SBG Securities and Stanbic Insurance Agency Limited) reported a profit after tax of KES 4.3b Net interest income declined to KES 10.6b compared to KES 10.8b over the same period in 2016 due to decrease in asset yields which was partly
Slide 7: Detailed financial analysis
Detailed financial analysis Abraham Ongenge Chief Finance Officer Financial results presentation / slide 7 /
Slide 8: Summary income statement
Summary income statement Dec-2017 Dec-2016 KES millions KES millions Change % Net interest income 10,644 10,860 (2) Non-interest revenue 8,420 7,657 10 Total income 19,064 18,517 3 Operating expenses (10,902) (10,716) (2) Pre-provision profit 8,162 7,801 5 Credit impairment charges (2,761) (1,752) (
Slide 9: Revenue
Revenue Net interest revenue Non-interest revenue KES millions KES millions 18,000 10,000 16,000 14,000 8,000 12,000 Interest income 10,000 6,000 Trading and other Interest expense income 8,000 6,000 Net interest income 4,000 Net fees and 4,000 commissions 2,000 2,000 - - Dec 2017 Dec 2016 Dec 2017
Slide 10: Credit impairment and operating expenses
Credit impairment and operating expenses Operating expenses Credit impairment charges KES millions KES millions 3,000 2.5% 12,000 58.0% 57.9% 2.1% 2,500 10,000 57.8% 2.0% 2,000 8,000 57.6% Other operating 1.5% 1.5% expenses General debt provision 1,500 6,000 57.4% Staff costs 1.0% Specific debt prov
Slide 11: Summarised group balance sheet
Summarised group balance sheet Dec-17 Dec-16 Change KES millions KES millions % Assets Financial investments 76,245 52,927 44% Loans and advances to banks 12,744 16,989 (25%) Loans and advances to customers 130,536 115,588 13% Other assets 16,201 16,432 (1%) Property and equipment 2,307 2,262 2% Int
Slide 12: Customer loans and advances
Customer loans and advances Dec 2017 Loans and advances by product KES millions 135,000 130,536 Home loans 130,000 19% 125,000 Overdrafts 120,000 13% 115,588 58% 115,000 Vehicle asset 10% finance(VAF) 110,000 Term lending 105,000 Dec 2017 Dec 2016 Customer loans and advances grew by 13% year on ye
Slide 13: Customer loans and advances – Non performing loans (NPLs)
Customer loans and advances – Non performing loans (NPLs) KES millions NPLs by business unit 10,000 35.0% Dec 2017 Dec 2016 31.3% 9,000 30.0% 8,000 7,000 24.5% 25.0% Loan loss provision PBB CIB 6,000 40% PBB 45% 20.0% CIB 55% 5,000 Discounted value of 60% 4,000 15.0% security 3,000 10.0% Coverage ra
Slide 14: Customer deposits
Customer deposits grew by 30% year on year with core Customer deposits accounts accounting for 86% of total deposits KES millions Customer deposits by business unit 180,000 Dec 2017 Dec 2016 154,661 160,000 140,000 119,328 120,000 100,000 PBB PBB CIB 80,000 45% CIB 48% 52% 60,000 55% 40,000 20,000
Slide 15: Funding, liquidity and capital
Funding, liquidity and capital 120% Assets funded mainly from customer deposits 100% 17% 19% 80% 3% 7% 2% 2% 16% Capital adequacy ratio (Bank only) 60% 16% 40% 20.0% 18.1% 62% 56% 16.9% 20% 15.4% 15.9% 14.5% 15.0% 14.5% 0% 10.5% 10.5% Dec-17 Dec-16 Customer deposits Deposits with Banks Borrowings
Slide 16: Corporate and Investment Banking
Corporate and Investment Banking Anton Marais Executive, Corporate and Investment Banking Financial results presentation / slide 16 /
Slide 17: CIB summary performance
CIB summary performance Dec-2017 Dec-2016 Change Net interest income grew by 3% as a result of KES millions KES millions % growth in the customer balance sheet Net interest income 5,718 5,555 3 Increased trade, cash management and Investor Services fees driven by higher volumes led to an Non int
Slide 18: CIB 2018 strategic priorities
CIB 2018 strategic priorities We aspire to be the undisputed We want to deliver value to our We want to partner with our financial services provider of clients through our deep sector clients to unlock their dreams choice expertise by focusing on: Client centricity We want to do valuable things for
Slide 19: Personal Business Banking (PBB)
Personal Business Banking (PBB) Ben Wandawanda Executive, Personal and Business Banking Financial results presentation / slide 19 /
Slide 20: PBB summary performance
PBB summary performance Dec-2017 Dec-2016 Change Decline in net interest income growth due to lower KES millions KES millions % margins post interest capping Net interest income 4,926 5,305 (7) Non interest revenue for prior year includes Non interest revenue 2,040 1,682 21 revenue relating to S
Slide 21: PBB 2018 strategic priorities
PBB 2018 strategic priorities Leading with Business Banking •Eco-system approach aligned to CIB customer opportunities •Transactional accounts - primary Focus on non interest revenue generating •Payments and Collections activities •Trade Finance – including GM •Wealth – Insurance, Investments & offs
Slide 22: Wealth
Wealth Adam Jones Regional Executive, Wealth Financial results presentation / slide 22 /
Slide 23: What is Wealth?
What is Wealth? WEALTH is not WEALTH is not Wealth and Investment only for the wealthy… (High net worth) WEALTH consists of: WEALTH is a business -All banking and non strategy that cuts across all banking financial services business units -All channels -All segments Financial results presentation /
Slide 24: What is Wealth? Continued…
What is Wealth? Continued… • The Wealth business strategy cuts across all business units and comprises of: WI – Wealth and Investment SIAL – Stanbic Insurance Agency Limited IPB – International Personal Banking • Wealth leverages off the unique partnership across the Standard Bank Group - Stan
Slide 25: Wealth Kenya 2018 strategic priorities
Wealth Kenya 2018 strategic priorities •Increase penetration (Embedded and standalone) Deliver the numbers •Offshore accounts, Private Banking customer penetration Further establish the Wealth •Launch SIAL/ Wealth and Investment Advisory Services strategy •Eco-system approach aligned to CIB and BB c
Slide 26: Stanbic Insurance Agency Limited (SIAL)
Stanbic Insurance Agency Limited (SIAL) Julia Shisia Executive, SIAL Financial results presentation / slide 26 /
Slide 27: SIAL summary performance
SIAL summary performance Dec-2017 Dec-2016 Change The performance reflects; KES millions KES millions % Increase in revenue from embedded products following growth in the loan book Brokerage commission 174 133 31 Improved revenue from stand alone business Total expenses (123) (83) (48) after a
Slide 28: SIAL 2018 strategic priorities
SIAL 2018 strategic priorities Manage and monitor the changing regulatory environment Increase penetration on customer base per business segment Deeper Collaborating with CIB sectors targeting tier 1 customers Embedding insurance solutions to customers in Personal markets and SME space, that
Slide 29: SBG Securities (SBGS)
SBG Securities (SBGS) Bethuel Karanja Executive Director, SBG Securities Financial results presentation / slide 29 /
Slide 30: SBGS summary performance
SBGS summary performance Dec-2017 Dec-2016 Change SBG Securities posted revenues of KES 307m for the KES millions KES millions % full year ending 31st December 2017 indicating an increase from KES 295m recorded in the same period last year Brokerage commission 252 224 13 This performance reflect
Slide 31: SBGS 2018 strategic priorities
SBGS 2018 strategic priorities Perspective 2017 The Kenya equities market has improved year on year evidenced by growth in volumes and valuations despite the existing political and macro-economic risks. Notably, domestic institutional investors have increased market participation, which has partly
Slide 32: Q&A
Q&A Financial results presentation / slide 32 /