EJF Investments Ltd GBP · LSE:EJFI
EJF Investments Ltd GBP — EJF Investments — FY2024 Earnings Presentation
25 slides from EJF Investments Ltd GBP's earnings presentation, Mar 31, 2025
Slide 1: EJF Investments Limited 2024 Results Presentation
EJF Investments Limited 2024 Results Presentation 31 March 2025 www.ejfi.com Ordinary ShareTicker: EJFI LN
Slide 2: Returns Profile
Returns Profile 5.57% 89.30% Total Return for the Period1 Total Return since Inception1 9.80% 96.89% 9.06% 8.92% Total Return for Total Return Annualised Total Annualised the Year1 since Inception1 Return since Dividend Yield1 Inception1 9.12% Annualised Total Return since Inception1 1. All figures
Slide 3: Summary of Audited Financials
Summary of Audited Financials Income Statement 1 January 2024 to 31 December 2024 1 January 2023 to 31 December 2023 £ million £ million Dividend Income from Subsidiary 8.7 8.0 Net gain/(loss) from Investment in Subsidiary 4.7 (13.0) Total Income 13.4 (5.0) Investment Management fee (0.9) (0.9) Othe
Slide 4: Summary of Audited Financials
Summary of Audited Financials Balance Sheet 31 December 2024 31 December 2023 £ million £ million Investment in Subsidiary 126.4 121.7 Cash at EJFI Level 0.5 0.7 Other Assets 0.4 0.2 Total Assets 127.3 122.6 ZDP Shares (26.0) (24.1) Other Liabilities (0.6) (0.5) Total Liabilities (26.6) (24.6) Net A
Slide 5: EJFI Has An Experienced External Manager
EJFI Has An Experienced External Manager Founded in 2005 EJF Capital LLC (“EJF”) is a global institutional by Emanuel Friedman and Neal Wilson alternative asset management firm with a $5.4 billion compelling strategic approach and independent Approximate total firm AUM which includes global perspect
Slide 6: Portfolio Summary
Portfolio Summary ~ 65% of EJFI’s Assets are In Regulated Debt ~ 11% of EJFI’s Assets are in the of Small Banks and Insurance Companies Management Fee Streams of EJF Affiliates ✓ Must be approved by regulators ✓ EJF manages pools of securitised debt that are senior in the waterfall to AAA/AA rated d
Slide 7: Significant Investment Exposures (as of year end)
Significant Investment Exposures (as of year end) CDO Equity Tranches and The investments into the equity and mezzanine tranches of 7 CDOs provide the Company exposure to Mezzanine Debt Securities underlying collateral comprising 333 debt instruments issued by 148 US banks and 33 US insurance compan
Slide 8: Alternate view of the portfolio: Risk/Reward Characteristics
Alternate view of the portfolio : Risk/Reward Characteristics Amount % of Risk profile of Estimated Gross EJFI Portfolio as of 31 December 2024 (£'million) Gross assets underlying exposure Yield12 Floating & Fixed Rate Regulatory Debt issued by small US banks 82.4 65% Baa3-Ba3 14% and insurance comp
Slide 9: NAV Bridge - Gross and Net
NAV Bridge - Gross and Net1 Gross NAV £120 Millions £100.7 £115 £1.0 £0.3 £0.8 £110 £11.2 £0.1 -£0.0 -£4.1 £105 £100 -£6.5 £98.0 £95 Securitisations & US Treasuries Specialty Finance Expenses 31 December 2024 Related Investments Investments (net of reimbursement) 31 December 2023 US Bank debt Credit
Slide 10: Valuation, Share Price and Dividends
Valuation, Share Price and Dividends 31 December 2023 31 December 2024 28 February 2025 Net Asset Value £98.0m £100.7m £99.9m Valuation NAV per ordinary share¹ 160.0p 165.0p 163.0p Share price discount to NAV per ordinary share¹ 36.6% 27.3% 26.7% Ordinary Share price 101.5p 120.0p 119.5p Market View
Slide 11: Regulated Debt – Why Invest in U.S. Small Banks?
Regulated Debt – Why Invest in U.S. Small Banks? The U.S. Has Three Banking Regimes. EJF’S PRIMARY INVESTMENT FOCUS1 Small Regional GSIB/Money Center Bank Assets ($ B) $0-50 $50-250 $250 + Number of banks / 4,272 27 14 Assets2 $5.5 Trillion $3.4 Trillion $17.9 Trillion Banks $100-$250 B subject to S
Slide 12: Why Invest in U.S. Small Banks?
Why Invest in U.S. Small Banks? EJF views the small bank market as if it were a coiled spring … ready to unleash its considerable stored-up energy. Trump 2.0 • New financial regulators are less hostile to small bank M&A - Incoming FDIC Chair Travis Hill’s intentions are as per the below quoted on 22
Slide 13: U.S. Bank M&A Activity
U.S. Bank M&A Activity Overview of U.S. bank M&A activity across administrations Two of the last four years have seen the fewest bank M&A deals since the 1990s. We anticipate a rebound in deal activity, as small and regional bank share prices – the currency for M&A transactions – have risen during t
Slide 14: Why Invest in U.S. Financials Now?
Why Invest in U.S. Financials Now? Investors generally are under exposed to Financials • Financials represent 14.1% of S&P 500. • FTSE 100 has 5 constituent bank names representing 11.81% of the index. • HSBC alone represents 7.17% of the index; the other 4 banks are Lloyds, Barclays, Schroders and
Slide 15: Addressing Share price discount to NAV per ordinary share
Addressing Share price discount to NAV per ordinary share • Introduction of Shareholder liquidity through annual tender offers (at the discretion of the Board). • Our decision to re-invest approximately 20% of our management fee into Ordinary Shares until Q2 2025 as long as the average share price d
Slide 16: Looking Forward: CRT
Looking Forward: CRT Credit Risk Transfer (“CRT”) Transaction • In 2024, the Company began investing in small bank CRT transactions. • Although SRT/CRT transactions have been a tool utilised by banks in Europe since the GFC, CRTs are a nascent strategy in the US and with small banks in particular. S
Slide 17: Recap, Events Post Year End and Outlook
Recap, Events Post Year End and Outlook • Total Return1 for the year was 9.80%. The underlying portfolio component of this was 13.17% which was primarily driven by net gains from Securitisation and Related Investments of 12.05% where the robust 13.49% return from interest accruals was offset by 1.44
Slide 18: Any Questions?
Any Questions? Please see Legal Disclosures on pages 21-24. 17
Slide 19: Appendix
Appendix Please see Legal Disclosures on pages 21-24. 18
Slide 20: Equity Tranche Investments (as of 31 December 2024)
Equity Tranche Investments (as of 31 December 2024) TFINS 2017-2 TFINS 2018-1 TFINS 2018-2 TFINS 2019-1 TFINS 2019-2 TFINS 2020-1 TFINS 2020-2 October 2017 May 2018 December 2018 March 2019 December 2019 September 2020 December 2020 Equity Tranches Amount ($ million) 13.9 17.5 11.8 12.7 13.2 13.3 8.
Slide 21: Enquiries Contact Information
Enquiries Contact Information EJF Investments Manager LLC Mungo Hargreaves mhargreaves@ejfcap.com For the Manager +44 203 752 6774 Jay Ghatalia jghatalia@ejfcap.com +44 203 752 6776 Panmure Liberum Darren Vickers ejfinvestments@panmureliberum.com +44 203 100 2222 For the Brokers Barclays Bank PLC Di
Slide 22: Legal Disclosures
Legal Disclosures PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS, WHICH MAY VARY. THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM AUSTRALIA, CANADA, SOUTH AFRICA, THE EUROPEAN ECONOMIC AREA ("E
Slide 23: Legal Disclosures
Legal Disclosures Statements of historical events are strategy and fund specific and may not apply to all products and services offered by the Company, the Manager or EJF. Certain statements may contain performance calculations which were prepared by EJF and contain assumptions about future delinque
Slide 24: Legal Disclosures
Legal Disclosures This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The securities mentioned herein have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "US Securities Act") or wit
Slide 25: Legal Disclosures
Legal Disclosures Each of Barclays Bank PLC, which is authorised by the Prudential Regulation Authority (the “PRA”) and regulated in the United Kingdom by the Financial Conduct Authority (the “FCA”) and the PRA, and Liberum, which is authorised and regulated in the United Kingdom by the FCA (togethe