First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — FY2012 & Q1 2013 Earnings Presentation
43 slides from First Holdco's earnings presentation, May 17, 2013
Slide 1: Transforming into the Financial Institution of First Choice
Transforming into the Financial Institution of First Choice Focused on Delivering Sustainable Long Term Returns Full Year Ended December 2012 & First Quarter Ended March 2013 Investor & Analyst Presentation © FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first qua
Slide 2: Agenda
Overview & Operating Financial Review Environment Agenda Business Groups Strategy Summary & Outlook © FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013
Slide 3: Disclaimer
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Disclaimer Overview Financial Review Business Groups Strategy Summary/Outlook This presentation is based on FBN Holdings Plc’s (‘FBNH’ or the ‘Group’ or ‘HoldCo’) audited IFRS results
Slide 4: Overview & Operating Environment
Overview & Operating Environment © FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013
Slide 5: Completed the migration to a holding company structure
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Completed the migration to a holding company structure Overview Overview Financial Review Business Groups Strategy Summary/Outlook FBN Holdings Plc Investment Banking & 2 Commercial B
Slide 6: FBN Holdings performed well despite a mixed macro and regulatory environment
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 FBN Holdings performed well despite a mixed macro and regulatory environment Overview Overview Financial Review Business Groups Strategy Summary/Outlook Macro Factors Effect on FBN Ho
Slide 7: FBN Holdings consolidated its FIRST position among Nigeria's financial institutions
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 FBN Holdings consolidated its FIRST position among Nigeria’s financial institutions Overview Overview Financial Review Business Groups Strategy Summary/Outlook FIRST in Nigeria by tot
Slide 8: Solid improvement across key financial indicators
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Solid improvement across key financial indicators Overview Overview Financial Review Business Groups Strategy Summary/Outlook Net revenue (Nbn) Cost to income ratio 26% 298.3 61.9% 23
Slide 9: Financial Review
Financial Review © FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013
Slide 10: 2012 & Q1 2013: Overview of income statement
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 2012 & Q1 2013: Overview of income statement Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook • Gross earnings grew 31.4% y-o-y to N360.3bn for 2012
Slide 11: 2012 and Q1 2013: Overview statement of financial position
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 2012 and Q1 2013: Overview statement of financial position Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Snapshot: Statement of financial positio
Slide 12: Deposits have continued to grow at healthy levels
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Deposits have continued to grow at healthy levels Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Deposits by type Nbn Deposits by SBU Nbn (Bank on
Slide 13: Capital and liquidity levels are adequate to sustain our growth plans
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Capital and liquidity levels are adequate to sustain our growth plans Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Components of capital (Nbn) E
Slide 14: Evolution of 2012 profit after tax
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Evolution of 2012 profit after tax (Nbn) Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook 34.9% 68.8% 20.0% 25.8% 31.6% 40.1% (67.6%) nm nm vs. 2011
Slide 15: Evolution of Q1 2013 profit after tax
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Evolution of Q1 2013 profit after tax (Nbn) Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook 11.5% 59.5% 20.8% 5.0% 1.5% 9.5% (67.9%) nm nm vs. Q1 2
Slide 16: Gross earnings growth driven by stronger yields, volumes and non-interest income
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Gross earnings growth driven by stronger yields, volumes and non- interest income Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Gross earnings Nb
Slide 17: Net interest income increased driven by higher yields and margins
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Net interest income increased driven by higher yields and margins Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Net interest margin (NIM) Yields
Slide 18: Operating expenses remained disciplined despite healthy business growth
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Operating expenses remained disciplined despite healthy business growth Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook • Operating expenses rose b
Slide 19: Increasing efficiency and flexibility in earning assets
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Increasing efficiency and flexibility in earning assets Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Earning assets mix (Nbn) FBN Holdings gross
Slide 20: First Bank of Nigeria (loan book dynamics)
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 First Bank of Nigeria (loan book dynamics) Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Breakdown of loans by SBU Loan Breakdown by Sectors Gene
Slide 21: FBN UK (loan book dynamics)
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 FBN UK (loan book dynamics) Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook • Core businesses are Structured Trade Commodity Finance (generally Loa
Slide 22: Asset quality remains sound, reflecting dynamic portfolio management
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Asset quality remains sound, reflecting dynamic portfolio management Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Asset quality NPLs sector expo
Slide 23: Improving management of the loan book resulting in lower cost of risk
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Improving management of the loan book resulting in lower cost of risk Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Allowance for impairments Nbn
Slide 24: Performance Review - Business Groups
Performance Review - Business Groups Commercial Banking Investment Banking & Asset Management Insurance & Microfinance © FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013
Slide 25: Review of Commercial Banking
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Review of Commercial Banking Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Full Year 2012: Gross earnings – 2012 & Q1 2013 (Nbn) • Demonstrated re
Slide 26: Review of Investment Banking & Asset Management
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Review of Investment Banking & Asset Management Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Full Year 2012: • Challenging operating environment
Slide 27: Review of Insurance - FBN Life Assurance
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Review of Insurance - FBN Life Assurance Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook • FBN Life Assurance Limited, a joint venture with Sanlam (
Slide 28: Review of Insurance – FBN Insurance Brokers
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Review of Insurance – FBN Insurance Brokers Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook • Gross Income grew by 2.3% y-o-y, driven by interest ea
Slide 29: Review of Microfinance
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Review of Microfinance Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Full Year 2012: Gross earnings – 2012 & Q1 2013 (Nmn) • FBN Microfinance (FBN
Slide 30: Strategy
Strategy © FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013
Slide 31: Aspiring to be the dominant financial services group across middle Africa
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Aspiring to be the dominant financial services group across middle Africa Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Dynamic Macroeconomic Strategy Ca
Slide 32: Growth strategy developed to capitalise on opportunities and attain aspirations
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Growth strategy developed to capitalise on opportunities and attain aspirations Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Strategic Framework for Gro
Slide 33: 1. Business Line Expansion to High Growth Segments
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 1. Business Line Expansion to High Growth Segments Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Enhancing yields through increased focus on high growth
Slide 34: 2. Leverage Group Structure to Achieve Synergies and Cross Selling
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 2. Leverage Group Structure to Achieve Synergies and Cross Selling Overview Financial Review Business Groups Strategy Strategy Summary/Outlook HoldCo Value Extracting Synergies Progre
Slide 35: 3. International Expansion Focused on Core Banking Business
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 3. International Expansion Focused on Core Banking Business Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Global Footprint France United Arab Emirates Re
Slide 36: Summary/Outlook
Summary/Outlook © FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013
Slide 37: Summary/Outlook
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Summary/Outlook Overview Financial Review Business Groups Strategy Summary/outlook Summary/Outlook • Continue to push top line growth across our Group with an emphasis on: - customer
Slide 38: Clear 2013 financial targets
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Clear 2013 financial targets Overview Financial Review Business Groups Strategy Summary/outlook Summary/Outlook 2012 Results 2013 Targets Deposit growth 23% >15% Loan growth 23% >10%
Slide 39: Contact Details
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Contact Details Overview Financial Review Business Groups Strategy Summary/Outlook Head, Investor Relations Oluyemisi Lanre-Phillips Email: oluyemisi.lanre-phillips@firstbanknigeria.c
Slide 40: Appendix
Appendix © FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013
Slide 41: Steady growth in risk assets with focus on improving overall portfolio quality
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Steady growth in risk assets with focus on improving overall portfolio quality Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Loans and advances b
Slide 42: Remedial action intensified across the board to improve asset quality
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 Remedial action intensified across the board to improve asset quality Overview Financial Financial Review Review Business Groups Strategy Summary/Outlook Sector NPL ratios (Bank only)
Slide 43: GDR Programme
© FBN Holdings 2013 | Results Presentation for full year ended 31 December 2012 and first quarter 2013 | 17 May 2013 GDR Programme Overview Financial Review Business Groups Strategy Summary/Outlook First Bank of Nigeria has a Sponsored Regulation S Global Depositary Receipt (RegS GDR) program Tick
FBN Holdings — FY2012 & Q1 2013 Earnings Presentation on 6ix