First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — 9M 2024 Earnings Presentation
40 slides from First Holdco's earnings presentation, November 2024
Slide 1: 9 Months 2024 Results Presentation
9 Months 2024 Results Presentation November 2024
Slide 2: Disclaimer
Disclaimer This presentation is based on FBN Holdings Plc’s (‘FBNH’ or ‘FBNHoldings’ or the ‘Group’) audited financial statements for the year ended December 31, 2023, and unaudited financial statements for the period ended September 30, 2024. The Group’s Financial statements represent FBNHoldings P
Slide 3: 9 Month 2024 Key Highlights
FBNHoldings SY 9 Month 2024 Key Highlights
Slide 4: Financial and operational highlights
Key Highlights Financial and operational highlights Gross Earnings Profit Before Tax Cost-to- Income Total Assets Gross earnings Strong earnings drove CIR improves further Total assets grew increased YoY by 134% a 128% YoY growth in to 46.4% (FY ’23: +62.3% to ₦27.5 to ₦2.25 trillion (9M the bottom-
Slide 5: 9M 2024: Strong business performance with a sustained growth trajectory
Key Highlights 9M 2024: Strong business performance with a sustained growth trajectory Gross Earnings ₦’billion Net-Interest Income ₦’billion Non-Interest Income ₦’billion Operating Income ₦’billion Impairment Charge ₦’billion + 134.0% + 132.7% + 82.5% + 109.6% + 111.5% 873.9 2252.1 1,458.7 171.4 58
Slide 6: Strengthened core fundamentals in a challenging environment
Key Highlights Strengthened core fundamentals in a challenging environment Post Tax ROaE (%) Net Interest Margin (%) Cost of Funds (%) Liquidly Ratio(1) (%) 32.8 7.9 5.5 34.2 35.9 6.1 31.7 22.6 5.8 3.7 14.5 2.3 FY 22 FY 23 9M 24 FY 22 FY 23 9M 24 FY 22 FY 23 9M 24 FY 22 FY 23 9M 24 Post Tax ROaA (%)
Slide 7: Franchise strength, solid funding base and disciplined capital management underpin investment case
Key Highlights Franchise strength, solid funding base, improving operational excellence and disciplined capital management underpin strong investment case Enhanced Revenue and 2024 financial Profitability FY 2022 FY 2023 9M 2024 targets By focusing on technology and innovation ROAE 14.5% 22.6% 32.8%
Slide 8: Capital raise offering summary
Key Highlights Capital raise offering summary Issue Size • Up to ₦150.0 billion • Opens: 4th November 2024 Key Dates • Closes: 12th December 2024 • Issuance of 5,982,548,799 ordinary shares of 50 kobo each at ₦25.00 per share Subscription Price • Provisional allotment to shareholders on the basis of
Slide 9: Strategic Roadmap
FBNHoldings SY Strategic Roadmap
Slide 10: A diversified financial services group with a structure that supports synergies
Strategic Roadmap A diversified financial services group with a structure that supports synergies COMMERCIAL BANKING FBNQUEST GROUP OTHERS First Bank of Nigeria Limited FBNQuest Capital Limited • FBN Insurance Brokers Limited • FirstBank UK Limited • FBNQuest Funds Limited • FirstBank DRC Limited •
Slide 11: FBNHoldings - a dominant player in the industry
Strategic Roadmap FBNHoldings - a dominant player in the industry Credit Ratings B- Positive B- Stable A+ Stable Empowering Financial Inclusion in Impressive loan quality improvement Solid core banking revenues among peers Nigeria with a large agent banking from 24.4% in 2016 to 4.7% as at FY’23. wi
Slide 12: Driving growth through expansion, innovation, integration, and sustainability
Strategic Roadmap Driving growth through expansion, innovation, integration, and sustainability Market Expansion & Customer-Centric Ecosystem Integration Governance & Strategic Investments Innovation Sustainability • Expand into new • Machine Learning & • Integrated ecosystem • Continue to integrate
Slide 13: Responsible lending, inclusivity & climate action remain key tenets of our ESG approach
Strategic Roadmap Responsible lending, inclusivity & climate action remain key tenets of our ESG approach Sustainable Finance Development Climate Action • Over N10.550 trillion transactions screened for ESG risks • 30,000 trees in 2024 Driving sustainable finance and investments from 2022-2024 Septe
Slide 14: Digital Banking
FBNHoldings SY Digital Banking
Slide 15: Renewed focus on growing alternate banking channels
Digital Banking Renewed focus on growing alternate banking channels >5m >43m > 23m Transactions Customer Users across all digital processed on Accounts* 16,043,201 platforms (USSD *894#, FirstDirect 2.0 FirstMobile & FirstOnline) Subscribers Branch of the FirstBank Branches 13.08m 6.9m Future ATM Ca
Slide 16: Accelerating revenue expansion with cutting-edge digital innovations
Digital Banking Accelerating revenue expansion with cutting-edge digital innovations Number of Subscribers (Million) Volume of transactions processed (Million) Value of transactions processed (₦’billion) CAGR +10.7% CAGR +26.3% CAGR +28.3% Mobile & Internet +13.2% +57.1% +10.4% 45,999 8.6 649 42,278
Slide 17: Expanding financial access through Agent Banking initiatives
Digital Banking Expanding financial access through Agent Banking initiatives Geographic Dispersion of FirstMonie Agents as at 9M 2024 FirstMonie FirstMonie maintains its Southwest, 14% Lagos, 13% market lead, solidifying the Empowering women position as Nigeria's largest 20.4% FirstMonie female 14%
Slide 18: Legacy of Excellence
FBNHoldings SY Legacy of Excellence
Slide 19: Our Vision, Mission and Values
Legacy of Excellence Our Vision, Mission and Values Vision Mission Core Values To be the leading African financial services provider E - Entrepreneurial delivering innovative To provide the best financial P - Professional solutions. services possible I - Innovative C - Customer-centric 19
Slide 20: Our global footprint
Legacy of Excellence Our global footprint NIGERIA SIERRA LEONE First Bank of Nigeria Limited FirstBank Sierra Leone Limited Commercial Banking Commercial Banking First Pension Custodian Nig. Limited Pension Fund Custodian SENEGAL First Nominees Nigeria Limited FBNBank Senegal Limited Non-Pension Ass
Slide 21: Experienced and seasoned leadership at Board level
Legacy of Excellence Experienced and seasoned leadership at Board level Mr. Olufemi Otedola, CON Mr. Nnamdi Okonkwo Dr. Muhammed Alimi Abdul-Razaq Dr. (Sir) Peter Aliogo Group Chairman – FBNHoldings Group Managing Director Independent Non-Executive Director Independent Non-Executive Director Mrs. Ko
Slide 22: Awards and recognitions
Legacy of Excellence Awards and recognitions 2023 BUSINESSDAY 2023 NEW TELEGRAPH 2023 BUSINESSDAY 2023 INTERNATIONAL 2023 INTERNATIONAL 2023 GREAT PLACE TO WORK Financial Holding Holdings Company Top 25 Chief FINANCE AWARDS FINANCE AWARDS Best in Promoting People Company of the Year of the Year Exec
Slide 23: 9M 2024 Financial Review
FBNHoldings SY 9M 2024 Financial Review
Slide 24: Robust earnings supported by improved offerings and a favourable rate environment
Financial Review Robust earnings supported by improved offerings and a favourable rate environment Gross Earnings ₦’billion Group Revenue by Segment % Asset Management (2) Insurance brokerage, 0.1 Public Sector Trusteeship, 0.7 2,252.1 3.3 5.1 1,595.3 962.4 Commercial Banking 6.8 Corporate & 815.2 i
Slide 25: Well-diversified portfolio through resilient growth across non-interest income channels
Financial Review Well-diversified portfolio through resilient growth across non-interest income channels • Non-interest income continues its YoY growth Non-interest Income Breakdown Net (₦’billon) Fees & Commission Breakdown Gross (₦’Billion) trajectory on the back of improved income from fees & com
Slide 26: Robust franchise underpinned by a solid and growing deposit base
Financial Review Robust franchise underpinned by a solid and growing deposit base • 9M’24 customer deposits rose by 56.8% to FirstBank Nigeria low-cost deposits (1) ₦16.7 trillion (FY’23: ₦10.7 trillion) • Cost of funds increased slightly for 9M ’24 to 5.5% (9M ’23: 3.2%) largely on the back of inte
Slide 27: Improved CIR position, increased OPEX driven by high inflationary environment
Financial Review Improved CIR position, increased OPEX driven by high inflationary environment • 9M ‘24 OPEX YoY +94.8% to ₦676.8 billion due to OPEX Drivers (₦’billion) the high inflationary environment and currency 4.8 devaluation. • Increased operating expense driven by regulatory 9M 24 210.4 88.
Slide 28: Strengthened risk management architecture & practices support resilient quality loan books
Appendix Strengthened risk management architecture & practices support resilient quality loan books FirstBank Nigeria Gross Loan per Sector (₦’trillion) 0.7% 7.1 9M 24 17.9% 25.0% 9.7% 14.0% 3.6% 4.4% 5.3% 19.4% 7.7 1.5% 5.4 FY 23 21.3% 18.6% 9.2% 11.5% 6.3% 3.8% 6.7% 21.2% 5.4 2.4% FY 22 19.5% 16.6
Slide 29: Disciplined capital management as strong earnings growth support organic capital accretion
Financial Review Disciplined capital management as strong earnings growth support organic capital accretion; New T1 issuance to further support & propel Group performance • Strong earnings capacity from internal operations continue to FirstBank Nigeria CAR (%) provide a solid platform for capital ac
Slide 30: Appendix
FBNHoldings SY Appendix
Slide 31: Economic strains of rising inflation and currency depreciation on the business landscape
Appendix Economic strains of rising inflation and currency depreciation on the business landscape Elevated levels of inflation Modest growth in external reserves amidst decrease in oil price 100 .0 2.5 90.0 2.0 34.19 80.0 33.20 70.0 28.92 1.5 26.72 60.0 1.2 1.4 1.3 1.3 1.3 1.3 22.79 35.5 1.2 1.2 38.
Slide 32: Key regulatory and policy interventions
Appendix Key regulatory and policy interventions • CBN directed all Financial Institutions to suspend the charging of 2% and 3% processing charges on all Individual and Corporate account cash deposits. • The CBN issued Guidelines to financial institutions under its regulatory purview in respect of t
Slide 33: FY 2023: Solid performance driven by growth across core banking activities
Appendix FY 2023: Solid performance driven by growth across core banking activities and increased transaction volume Gross Earnings ₦’billion Net-Interest Income ₦’billion Non-Interest Income ₦’billion Operating Income ₦’billion Impairment Charge ₦’billion +95.7% +51.1% +153.6% +91.5% +231.4% 815.2
Slide 34: FY Commercial Banking Group and Investment Banking and Asset Management Group (FBNQuest)
Appendix FY’ Commercial Banking Group Investment Banking and Asset Management Group (FBNQuest) Commercial Banking Group Investment Banking and Asset Management Group (FBNQuest) Key financial highlights & performance ratios Key financial highlights & performance ratios Income statement Statement of F
Slide 35: 9M Commercial Banking, Investment Banking and Asset Management Group (FBNQuest)
Appendix 9M’ 4 Commercial Banking, Investment Banking and Asset Management Group (FBNQuest) Commercial Banking Group Investment Banking and Asset Management Group (FBNQuest) Key financial highlights & performance ratios Key financial highlights & performance ratios Income statement Statement of Fina
Slide 36: Committed to corporate governance & ESG thought leadership
Appendix Committed to corporate governance & ESG thought leadership Memberships & Partnerships Awards & Recognitions ESG Governance Co-Chair Labour Committee FirstBank Sustainability Governance Structure • Digital Banker Africa: • United Nations Global Compact Local Network Best Financial Inclusion
Slide 37: 5-Year Financial Summary: Balance Sheet
Appendix 5-Year Financial Summary: Balance Sheet NGN’mn 2019 2020 2021 2022 2023 Cash and cash balances with central bank 1,025,325 1,631,730 1,586,769 1,790,863 2,572,363 Loans and advances to banks 754,910 1,016,823 1,015,122 1,223,061 2,053,230 Loans and advances to customers 1,852,411 2,217,268
Slide 38: 5-Year Financial Summary: Income Statement
Appendix 5-Year Financial Summary: Income Statement NGN’mn 2019 2020 2021 2022 2023 Gross earnings 627,008 590,663 757,296 815,166 1,595,255 Net operating income 449,301 531,328 592,813 600,291 1,149,764 Insurance claims (10,106) - - - - Operating expenses (304,556) (292,501) (334,182) (373,945) (56
Slide 39: Definitions
Appendix Definitions ₋ Cost-to-income ratio computed as operating expenses divided by operating income ₋ Cost of risk computed as annualised credit impairment charges divided by the average opening and closing gross loans balances ₋ Net-interest margin computed as annualised net interest income divi
Slide 40: Contact Details
Appendix Contact Details Head, Investor Relations Tolulope Oluwole Tolulope.O.Oluwole@fbnholdings.com +234 201 905 2720 Investor Relations Team investor.relations@fbnholdings.com : +234 201 905 1086; 1147 40