Zenith Bank Plc · NSENG:ZENITHBANK
Zenith Bank — FY2014 Earnings Presentation
30 slides from Zenith Bank's earnings presentation, December 2014
Slide 1: FY 2014 Group Results Presentation to Investors & Analysts
FY 2014 Group Results Presentation to Investors & Analysts December 2014 ZENITH BANK PLC
Slide 2: Disclaimer
Disclaimer This presentation is based on the consolidated financial statements of Zenith Bank Plc, a company incorporated in Nigeria on 30 May 1990, and its subsidiaries (hereinafter collectively referred to as "the Group"). The financial statements are prepared in accordance with the International
Slide 3: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Peter Amangbo Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director – Corporate Banking Sola Oladipo Slid
Slide 4: Nigerian Economy and Key Developments in the Banking Sector
Nigerian Economy and Key Developments in the Banking Sector Real GDP Growth (Rebase): The GDP grew at the rate of 5.94% y/y in Q4 2014, down by 83bps from 6.77% recorded in the corresponding quarter of previous fiscal year. Key The non-oil sector was the major driver of the growth recorded in Q4
Slide 5: Our Investment Proposition
Our Investment Proposition Strong earnings capacity and growth, Solid and liquid capital base, strengthened ERM practices, Good returns on investments and excellent customer services Key A dominant player in Nigerian Banking Industry: Theme Controls a significant share of the high end corporate
Slide 6: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Peter Amangbo Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director – Corporate Banking Sola Oladipo Slid
Slide 7: Financial Highlights
Financial Highlights Key Sustained Performance in 2014 Theme Gross Earnings: N403.34bn +14.76% YoY Net Interest Income: N206.50bn +3.38% YoY Net Interest Margin: 8.40% -3.45% YoY P&L PBT: N119.80bn +8.32% YoY PAT: N99.46bn +4.34% YoY Customer Deposit: N2.54tn +11.44% YoY Balance Total Assets: N3.76t
Slide 8: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 12 mths to 12 mths to YOY Dec-14 Dec-13 Change Gross Income 403,343 351,470 14.76% Continuing Operations: Interest Income 313,422 270,538 15.85% Interest Expense -106,919 -70,796 51.02% Net Interest Income 206,503 199,742 3.38% Impairment Charge for Credit L
Slide 9: Consolidating earnings and profitability
Consolidating earnings and profitability... Comments Consistently high Net Interest Margin Net Interest Margin (NIM) declined YoY by 3.4% (from 8.7% in 2013 to 8.40% in 2014) due to CRR increase by the CBN during the year 2014. It however increased QoQ from 8.0% in Q3 2014 to 8.4% in Q4 2014. Cos
Slide 10: Revenue Base …Sustained Diversification
Revenue Base …Sustained Diversification Interest Income 2014 2013 N'million 2014 2013 YoY PBT Inter-bank Placements 10,026 11,702 -14% T-Bills & Inv. Securities 56,463 77,728 -27% Government Bonds 31,997 35,947 -11% Derivative held for risk mgt 1,972 - Loans & Advances 212,964 145,161 47% Total 313,
Slide 11: Continuous efforts in cost-reduction strategies
Continuous efforts in cost-reduction strategies ….. 2014 Interest Expenses 2013 N'million 2014 2013 YoY Current accounts 4,020 4,223 -5% Savings accounts 6,183 3,825 62% Time deposits 85,156 58,812 45% Inter-bank takings 3,033 2,478 22% Borrowed funds 8,527 1,458 485% Total 106,919 70,796 51% Intere
Slide 12: Balance Sheet- Assets
Balance Sheet- Assets Group Group YOY (N'm) Dec-14 Dec-13 Change Cash and balances with central banks 752,580 603,851 24.63% Treasury bills 295,397 579,511 -49.03% Assets Pledged as collateral 151,746 6,930 2089.70% Due from other banks 506,568 256,729 97.32% Loans and advances 1,729,507 1,251,355 3
Slide 13: Balance Sheet- Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group YOY (N'm) Dec-14 Dec-13 Change Customers deposits 2,537,311 2,276,755 11.44% Derivative Liabilities 6,073 - Current income tax 10,042 7,017 43.11% Deferred income tax liabilities - 678 -100.00% Other liabilities 289,858 215,643 34.42% On-lending facili
Slide 14: Sustained assets & liabilities match
Sustained assets & liabilities match…... Loans Growth Loans & Advances 2014 2013 Deposits Growth Deposits Mix 2014 2013 14
Slide 15: Liquid asset base and funding mix
Continued market dominance through strong liquid asset base and funding mix… 2014 Liquid Assets 2013 N'million 2014 2013 YoY Cash 70,084 44,512 57% Operating accounts with CBN 174,350 210,646 -17% Treasury bills 295,397 579,511 -49% Assets pledged as collateral 151,746 6,930 2090% Due from other ban
Slide 16: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Peter Amangbo Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director – Corporate Banking Sola Oladipo Slid
Slide 17: P&L – By Geography
P&L – By Geography Gross Revenue 12 Months Ended Dec 2014 Rest of Nigeria Europe Eliminations Consolidated (N’m) Africa 2014 Total Revenue 377,734 26,630 10,622 -11,643 403,343 Share of profit of Associates - - - 138 138 Total Expense -264,972 -16,376 -7,454 5,117 -283,685 Profit Before Tax 112,762
Slide 18: P&L – By Sector
P&L – By Sector 12 Months Ended Discontinued Gross Revenue Corporate Institutional Public Retail Consolidated Dec 2014 (N’m) Operations 2014 Total Revenue 196,494 57,713 38,961 110,176 - 403,343 Total Expenses -143,408 -48,203 -35,368 -56,568 - -283,547 Profit Before Tax 53,085 9,510 3,593 53,608 -
Slide 19: Deposits & Loans – By Sector
Deposits & Loans – By Sector 2014 Total Deposits - N2.54tn 2013 Total Deposits - N2.28tn 2014 Gross Loans - N1.76tn 2013 Gross Loans - N1.28tn 19
Slide 20: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Peter Amangbo Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director – Corporate Banking Sola Oladipo Slid
Slide 21: Healthy Risk Assets Portfolio
Healthy Risk Assets Portfolio… NPL Coverage Ratio Our Risk Management Strategy The group adopts a complete and integrated approach to risk management that is driven from the Board level to the operational activities of the bank. Risk management is practiced as a collective responsibility coordin
Slide 22: Focused risk management via portfolio diversification
Focused risk management via portfolio diversification Loans by Sector – 2014 Loans by Sector – 2013 o Gross Loans – N1.76tn o Gross Loans – N1.28tn Well Diversified Loan Portfolio 22
Slide 23: NPL by Segment
NPL by Segment 2014 2013 o Total NPLs – N30.77bn o Total NPLs – N30.92bn o NPL Ratio – 1.8% o NPL Ratio – 2.9% o We continue to develop our Risk Management Strategy and improve on the quality of our loan portfolio. o Overall NPL ratio of 1.8% is currently one of the lowest in the industry 23
Slide 24: Strong Capitalization and Liquidity
Strong Capitalization and Liquidity Liquidity and Capital Adequacy Capital and liquidity ratios for the Bank – well above industry requirements. Capital Mix Capital base – predominantly made up of Tier 1 (core capital) which consists of mainly share capital and reserves created by appropriations of
Slide 25: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Peter Amangbo Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director – Corporate Banking Sola Oladipo Slid
Slide 26: Strategies for driving our vision
Strategies for driving our vision 1 The Bank focuses on cost 2 The Bank accomplishes this Compete effective deposits from the strategy by: aggressively for retail end of the market to lend Consistent focus and market share, but focus on high to the corporate end with Delivering superior invest
Slide 27: Our Key Growth Target Sectors
Our Key Growth Target Sectors Driving profitability with our competitive advantages Sector Identified Growth Sectors Competitive Advantage Business line & Geography Infrastructure Strong capital and liquidity Manufacturing Strong brand Oil and Gas (Upstream & Strong international rating Downst
Slide 28: Outlook and Prospects for FY2015
Outlook and Prospects for FY2015 Upstream Oil & Gas: The large international oil Agriculture: The Federal government’s resolve to boost the agricultural sector in the country would no doubt create quite companies are divesting from their on-shore and shallow- a number of opportunities in the are
Slide 29: Outlook and Prospects for FY2014
Outlook and Prospects for FY2014 Mobile & Internet Banking: Zenith Bank Plc has taken Deposit Base: Our drive for low cost and appropriately advantage of mobile and internet banking licenses to promote mixed deposit base to fund our credit and money market internet corporate banking solutions an
Slide 30: Thank you
Q&A Thank you 32