Access Holdings Plc · NSENG:ACCESSCORP

Access — Access Bank — Debt Investor Presentation (September 2016)

42 slides from Access's debt investor presentation, September 2016

  1. Slide 1: Access Bank Plc Roadshow Presentation

    ACCESS BANK PLC Roadshow Presentation September 2016

  2. Slide 2: The Access Bank Roadshow Team

    The Access Bank Roadshow Team Herbert Wigwe Seyi Kumapayi Group Managing Director / CEO Chief Financial Officer (CFO) • Over two decades of banking experience • Over 18 years of progressive experience in finance, risk management and strategy • Mr. Wigwe previously worked at Guaranty Trust Bank where

  3. Slide 3: Outline

    Outline 1 Access Bank at a Glance 2 Domestic Operating Environment 3 Overview of Access Bank 4 Group Financial & Operational Highlights 5 Conclusion & Transaction Summary 6 Appendix © 2016 ACCESS BANK PLC | SEPTEMBER 2016 ROADSHOW PRESENTATION | 3

  4. Slide 4: 1. Access Bank at a Glance

    1. Access Bank at a Glance © 2016 ACCESS BANK PLC | SEPTEMBER 2016 ROADSHOW PRESENTATION | 4

  5. Slide 5: Fundamental Statistics

    Fundamental Statistics 3m(3) Cards B1 Issuer 371 Branches B Credit Channels 1,526 ATMs B Ratings (1) 9,651 POS Terminals EMEA Finance African Banking Awards, 2016: • Best Bank in Nigeria 7m customers • Corporate Social Awards & (Primary equity listing) Responsibility (Pan- Listings Africa) Recogniti

  6. Slide 6: Industry Positioning

    Industry Positioning 1 Loans & Advances(1) (US$’m) 2 Total Deposits(1) (US$’m) 3 Return on Average Equity FBN 10,023 FBN 12,342 GTB 36.2% Zenith 9,270 Zenith 9,490 Access 19.9% Access 6,417 UBA 8,849 UBA 18.0% GTB 5,521 Access 7,702 Zenith 14.7% UBA 4,646 GTB 7,096 FBN 11.9% 4 Capital Adequacy Ratio

  7. Slide 7: Key Credit Highlights

    Key Credit Highlights Strong Financial Indicators Leading Bank in Nigeria 01 After-Tax Total 02 Top 3 Bank(2) ROAE Capital Adequacy 19.9% 19.6%  #4 by Number Extensive of Branches(3) Retail  #3 by POS(4) NPL Liquidity Platform  #4 by ATMs(5) Ratio Ratio(1) 2.1% 37.2% Strong and well-respected bra

  8. Slide 8: 2. Domestic Operating Environment

    2. Domestic Operating Environment © 2016 ACCESS BANK PLC | SEPTEMBER 2016 ROADSHOW PRESENTATION | 8

  9. Slide 9: The Nigerian Economy

    The Nigerian Economy Key Macroeconomic Indicators Macroeconomic Outlook Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 • Key reforms underway with a focus on the following areas: 2.4 2.8 2.1 -0.4 -2.1 – Policy environment, national security and GDP Growth Rate (%) governance – Expanding the non-oil sectors particula

  10. Slide 10: Nigeria is Africa's Leading Economy

    Nigeria is Africa’s Leading Economy GDP (US$’bn) GDP Contribution by Sector 10.0 539.4 Manufacturing 489.0 513.2 Nigeria is the largest 448.5 461.0 457.4 470.1 401.7 423.4 9.4% economy in Africa 367.3 385.2 Others Oil & Gas 5.0 5.1 21.8% and forecast to 4.3 4.0 8.3% remain one of the 5.9 2.8 2.8 4.9

  11. Slide 11: Nigeria's Key Growth Sectors

    Nigeria’s Key Growth Sectors Growth 45.0% Rate Power Sector US$1.8bn 40.0% • PHCN was unbundled leading to 18 successor Manufacturing companies 35.0% • Estimated investment • Rising GDP per capita requirement of $10bn per annum • Relaxation of exchange rate policy will encourage a return 30.0% in in

  12. Slide 12: The Nigerian Opportunity

    The Nigerian Opportunity • Nigeria is the largest economy in Africa A combination of solid Significant Scale of economic fundamentals, Economy with High • Average real GDP y/y growth of 4.8% from 2011 to 2015 progressive economic reforms in key sectors, natural resource wealth and ongoing political

  13. Slide 13: Key Macro Themes Challenging the Banking Landscape

    Key Macro Themes Challenging the Banking Landscape Impact on the Banking Industry Access Bank’s Response • Weaker capital adequacy, especially for banks with high proportion of FCY risk-weighted assets • Proactive risk management leading to the avoidance Currency of seemingly risky exposures to the

  14. Slide 14: 3. Overview of Access Bank

    3. Overview of Access Bank © 2016 ACCESS BANK PLC | SEPTEMBER 2016 ROADSHOW PRESENTATION | 14

  15. Slide 15: Our Corporate History

    Our Corporate History With the vision of becoming one of the most respected banks in Africa, Access Bank has emerged as a top three bank in Nigeria(1) , in line with disciplined execution of rolling 5-year corporate plans 2002 – 2006 2007 – 2012 2013 – 2017 • Raised US$114m(2) (₦15bn) in public • Ra

  16. Slide 16: Our Growth Trajectory

    Our Growth Trajectory Our growth story reflects our resolve to effectively execute our strategy and consistently deliver on our promise • Acquisition and merger with Top 3 Bank by Small Wholesale Bank Intercontinental Bank Plc. profitability(2) with increased retail presence • Post-Merger: Large Div

  17. Slide 17: The Key Pillars of Access Bank's Strategy

    The Key Pillars of Access Bank’s Strategy People Capital Base Risk Management Governance • Strong investment in training and • Adopted global and best • Discipline capital plan aligned • Highly respected, experienced, talent management with the practices in Risk Management with our 5-year rolling st

  18. Slide 18: Our Business Segmentation

    Our Business Segmentation Our diversified business leverages our entrenched value chain strategy across all our market segments. Our digital banking platforms are also critical to enhancing our competitiveness Corporate & Commercial Business Personal PBT Contribution 0.1% Investment Banking Banking

  19. Slide 19: 4. Group Financial & Operational Highlights

    4. Group Financial & Operational Highlights © 2016 ACCESS BANK PLC | SEPTEMBER 2016 ROADSHOW PRESENTATION | 19

  20. Slide 20: Key Messages

    Key Messages Resilient financial performance in the face of a challenging macroeconomic environment Key Takeaways from Improved Profits H1’16 Results Strong Asset Quality Profit Before Tax NPL Ratio(2) Cost of Risk (3) $176.8m 1 2 2.1% 1.2% H1’15: $138.2m  +28% y/y Dec’15: 1.8% H1’15: 1.2% ↑ +30 bp

  21. Slide 21: Group Financial Highlights

    Group Financial Highlights Profitability • Gross earnings grew 3% to $615.2m in H1’16 H1’16 H1’15  (H1’15: $596.0m) Gross Earnings(1) ($’000) 615,151 595,971 3% Net Interest Income ($’000) 241,901 170,205 42% • PBT up 28% to $176.8m in H1’16 compared to Profit Before Tax ($’000) 176,778 138,224 28%

  22. Slide 22: Revenue

    Revenue Gross Earnings(1) (US$’m) 1,192.4 867.2 458.0 38% 731.1 242.0 28% 596.0 615.2 215.3 29% 246.6 41% 218.3 35% 625.2 72% 734.4 62% 515.8 71% 396.8 65% 349.4 59% FY'13 FY'14 FY'15 H1’15 H1’16 Gross Interest Income Gross Non-Interest Income Gross Interest Income (US$’m) Non-Interest Income (US$’m

  23. Slide 23: Net Interest Income & Margin

    Net Interest Income & Margin Net Interest Income (US$’m) Net Interest Margin (NIM) (1) 6.2% 372.4 5.3% 353.5 5.2% 5.2% 5.2% 274.7 241.9 170.2 FY'13 FY'14 FY'15 H1'15 H1'16 FY'13 FY'14 FY'15 H1'15 H1'16 • Improvement in net interest margin (+10bps y/y; H1’15: 5.2% vs. H1’16: 5.3%), on the back of 14%

  24. Slide 24: Operating Expenses & Impairment Analysis

    Operating Expenses & Impairment Analysis Operating Expenses (US$’m) Impairment Analysis (US$’m) 73.0% 514.4 62.2% 50.3 59.2% 53.7% 41.2 62.0% 31.4 36.1 357.6 370.3 1.2% 2.5 12.0 1.2% 1.2% 329.1 0.9% 3.2 227.0 7.3 216.9 246.1 247.1 38.7 32.9 0.7% 38.3 24.1 35.7 159.8 151.1 30.8 32.6 (17.7) 16.7 18.1

  25. Slide 25: Balance Sheet Snapshot

    Balance Sheet Snapshot Asset Mix (US$’m) Total Liabilities (US$’m) 11,583 10,068 890 9,158 308 8% 3% 7,858 1,292 13% Capital 19.6% 608 1,075 11% Adequacy 282 7% 3% 834 11% Dec’15: 19.5% 6,417 55% 818 10% 4,978 54% 6,963 69% 729 6% 5,948 76% 658 942 7% 10% 1,076 10% 37.2% 2,164 19% Liquidity 1,691 18

  26. Slide 26: Loan Analysis

    Loan Analysis Loans and Advances (US$’m) Loan Distribution by Sector 6,417 Sector Jun’16 Dec’15 4,978 Oil & Gas – Downstream 8.9% 9.6% 244 3,968 Oil & Gas – Upstream 5.2% 4.2% 151 73.1% 3.3% 8.9% 5.2% Oil & Gas – Services 10.4% 8.1% 2,865 15.0% 44 Oil & Gas – Refinery 2.1% 2.0% 87 1.4% Construction

  27. Slide 27: Asset Quality

    Asset Quality NPL Analysis NPL Ratio by Sector(1) 129.4 Jun’16 Dec’15 General Commerce 7.7% 7.0% 89.3 86.3 Construction 5.6% 4.2% 79.8 221% Oil & Gas – Services 3.7% 1.4% 122% 159% 280% Oil & Gas – Upstream 1.5% 1.7% Oil & Gas – Downstream 1.1% 1.4% 2.4% 1.7% 1.8% 2.1% Real Estate 0.7% 0.8% Dec'13 D

  28. Slide 28: Deposit Analysis

    Deposit Analysis Customer Deposits (US$’m) Customer Deposits by Currency 6,963 5,948 546 8% 30% 5,140 34% 36% 41% 4,705 488 8% 457 9% 2,808 40% 418 9% 2,496 42% 1,773 38% 2,224 43% 2,965 50% 3,610 52% 70% 66% 2,515 53% 2,459 48% 64% 59% Dec'13 Dec'14 Dec'15 Jun'16 Demand Term Savings Dec'13 Dec'14 D

  29. Slide 29: Capital & Liquidity

    Capital & Liquidity Capital Adequacy Computation – Basel II Funding Sources Underlying in US$’m Jun’16 Dec’15 % Underlying in US$’m Jun’16 Dec’15 % Tier I Capital 1,187 1,070 11 Customer Deposits 6,963 5,948 17 Tier II Capital 481 307 57 Deposits from Banks 739 258 187 Total Regulatory Capital 1,6

  30. Slide 30: 5. Conclusion & Transaction Summary

    5. Conclusion & Transaction Summary © 2016 ACCESS BANK PLC | SEPTEMBER 2016 ROADSHOW PRESENTATION | 30

  31. Slide 31: Conclusion

    Conclusion Experienced Firmly entrenched management position in Nigeria Proactive risk team, with clear as a large and management for continuity and diversified Tier I future growth succession Bank planning Leading Strong Sound Solid Growth Robust Risk Financial Financial Corporate Prospects Managem

  32. Slide 32: Proposed Terms of Benchmark Bond Offering

    Proposed Terms of Benchmark Bond Offering FOR DISCUSSION PURPOSES ONLY Issuer Access Bank Plc. Issuer Rating Moody’s: B1 (Stable) | S&P: B (Stable) | Fitch: B (Stable) Ranking Senior Unsecured Principal Amount USD [Benchmark] Issue Format Regulation S / 144A drawdown from GMTN Programme Maturity & P

  33. Slide 33: Appendix

    Appendix © 2016 ACCESS BANK PLC | SEPTEMBER 2016 ROADSHOW PRESENTATION | 33

  34. Slide 34: Our Management Team comprises of industry leaders

    Our Management Team comprises of industry leaders with outstanding experience and reputation Over 20 years Deep sector expertise executive leadership Herbert Wigwe in banking retail and experience in the GMD/CEO corporate clients over a banking sector career spanning more than 20 years Obinna Nwosu

  35. Slide 35: Our International Distribution Network

    Our International Distribution Network Recognized as a leading commercial bank in Nigeria with Nigeria Zambia an extensive and growing international distribution network Parent Company Ownership Interest 92% PBT ($’m) 157.6 PBT ($’000) 88 Our 7 banking subsidiaries are situated in Sub-Saharan ROE (%

  36. Slide 36: FX Liquidity and Risk Management

    FX Liquidity and Risk Management Balanced Foreign • Conservative proportion of total loans are in foreign currency Currency Loan • Low NPLs for FCY loans confirm the soundness of the framework Exposure • Foreign currency assets funded by Eurobonds and foreign currency deposits, Prudent Asset-Liabili

  37. Slide 37: Foreign Exchange Swaps: Mechanics

    Foreign Exchange Swaps: Mechanics Transaction Dynamics Summary • The Central Bank of Nigeria (CBN) currently have adequate access to NGN but At spot date, Access Bank will sell USD to the CBN and buy have the need for USD funding in the short term to meet certain commitments NGN equivalent at an agr

  38. Slide 38: Group Statement of Financial Position

    Group Statement of Financial Position Underlying in US$’m unless otherwise stated 2013 2014 2015 CAGR ('13-'15) Jun'16 Jun15 Jun’16-Jun’15 %∆ Cash and Cash Equivalents: 1,553 1,431 1,691 4.3% 2,164 1,491 45.2% Cash and balances with other banks 405 175 301 (13.7%) 431 202 113.4% Money market placeme

  39. Slide 39: Group Statement of Comprehensive Income

    Group Statement of Comprehensive Income Underlying in US$’m unless otherwise stated 2013 2014 2015 CAGR ('13-'15) H1’16 H1’15 H1’16-H1’15 %∆ Gross Earnings(1) 731 867 1,192 27.7% 615 596 3.2% Interest Income: 516 625 734 19.3% 397 349 13.6% Cash and Cash Equivalents 6 11 13 48.0% 2 6 (66.9%) Loans a

  40. Slide 40: Disclaimer

    Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Access Bank Plc. (the “Bank”) or any person on behalf of the Bank, and any question-and-answer session that follows the oral prese

  41. Slide 41: Disclaimer (cont'd)

    Disclaimer (cont’d) The information presented herein is based on sources which Access The information should not be interpreted as advice to customers on the Bank Plc. (the “Bank”) regards dependable. This presentation may purchase or sale of specific financial instruments. Access Bank Plc. contain

  42. Slide 42: Access >>> Take Tomorrow

    ACCESS >>> LOMOFTOW noun A mystical land where 99% of all human productivity, motivation and achievement is stored. 3 TAKE TOMORROW

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