First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — 9M 2015 Earnings Presentation
31 slides from First Holdco's earnings presentation, 2015
Slide 1: Nine months ended September 2015 Investors & Analysts Presentation
Nine months ended September 2015 Investors & Analysts Presentation
Slide 2: Disclaimer
DISCLAIMER This presentation is based on FBN Holdings Plc‟s („FBNH‟ or the „Group‟ or „HoldCo‟) unaudited IFRS results for the nine months ended 30 September, 2015. The Group's financial statements have been prepared using the accounts of the subsidiaries and businesses within FBNHoldings. When we u
Slide 3: Outline
Outline Overview Pg 5 - 9 Financial Review Pg 11 - 24 Business Groups Pg 26 - 27 Outlook Pg 29 3
Slide 4: Overview
FBNHoldings Overview
Slide 5: Macroeconomic environment
Macroeconomic environment OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Nigerian GDP and inflation growth Oil prices vs. Naira 16.00 30% 14.00 20% 12.00 10% 10.00 0% -10% 8.00 -20% 6.00 -30% 4.00 -40% 2.00 -50% 0.00 3/31/2010 9/30/2010 3/31/2011 9/30/2011 3/31/2012 9/30/2012 3/31/2013 9
Slide 6: Significant Opportunities in the Nigerian Market – Long term FBNH Strategy for growth
Significant Opportunities in the Nigerian Market – Long term FBNH Strategy for growth remains strong given underlying fundamental drivers OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Favourable demographics with a GDP growth forecasts Underbanked universe & retail growing middle class
Slide 7: FBNHoldings' global footprint
FBNHoldings‟ global footprint OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX UK France China • Name FBNBank UK Ltd. • Name FBNBank UK Ltd. • Name FBNBank China • Type Licensed Bank • Type Licensed Bank • Type Representative Office • Established 2002 • Established 2008 • Established 2009
Slide 8: FBNH 9-months performance snapshot
FBNH 9-months performance snapshot OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Total Assets Customer Deposits Loans & Advances Loans/Deposits1 N4,303.4 bn N2,999.6 bn N1,908.7bn 66.5% NPL Ratio2 Net Interest Margin3 CAR4 RoAE5 4.8% 7.7% 19.0% 12.2% Business locations ATMs Active Custo
Slide 9: Economic fundamentals impact profitability
Economic fundamentals impact profitability OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Operating income (Nbn) Cost-to-income +19.8% 355.1 66.7% 62.7% 69.8% 296.4 106.8 64.5% 65.1% 105.1 58.5% 61.3% 90.5 88.8 81.6 Annual Annual 2013 2014 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 2013 2014 Q3 14 Q4
Slide 10: Financial Review
Financial Review FBNHoldings 10
Slide 11: 9M 2015: Overview of income statement
9M 2015: Overview of income statement OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Nbn 9M 14 9M 15 y-o-y • Gross earnings grew by 16.9% y-o-y to N390.0bn (9M 2014: N333.6bn); attributable to growth in interest income from loans and advances to customers (+7.5% y-o-y), Gross Earnings 33
Slide 12: 9M 2015: Overview of statement of financial position
9M 2015: Overview of statement of financial position OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Structure – September 2015 (Nbn) Nbn FY 14 9M 15 y-t-d N4,303 N4,303 Other assets 5 [N4,343] [N4,343] Total Assets 4,342.7 4303.4 -0.9% 2.8% [2.4%] 120.9 Investment Securities (interest Pr
Slide 13: High quality deposit funding base sustained with contribution from retail
High quality deposit funding base sustained with contribution from retail OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 2 Deposits by type Nbn Deposits by SBU Nbn (First Bank of Nigeria Only) Retail banking Private banking Corporate banking Commercial banking Current accounts Savings ac
Slide 14: Evolution of 9M 2015 profit after tax
Evolution of 9M 2015 profit after tax (Nbn) OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 9M 2015 9M 2014 17.5% 35.6% 9.3% 10.5% 4.4% ROaE 12.2% 15.4% ROaA 1.5% 1.8% 300.4 107.5 22.8% 249.0% -100% 19.2% 48.4% 9.7% 82.5 275.4 169.2 106.2 46.6 0.0 59.6 9.3 50.2 2 Interest income Interest
Slide 15: Revenue growth supported by an increase in both interest and non-interest income
Revenue growth supported by an increase in both interest and non-interest income OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 1 Gross earnings breakdown (Nbn) Interest Income Non Interest Income • Gross earnings increased by 16.9% y-o-y to N390.0bn (9M 2014: N333.6bn) 16.9% • Growth in
Slide 16: Better portfolio mix and improved asset yields lead to an increase in NIM
Better portfolio mix and improved asset yields lead to an increase in NIM and stable Cost of funds OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 1 Net interest margin (NIM) Balance sheet efficiency • Healthy low-cost deposits Leverage (times) 3 Gross loans to deposits Liquidity Gross lo
Slide 17: Efficiency ratios kept within guidance with scope for improvement
Efficiency ratios kept within guidance with scope for improvement OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Operating income and expenses (Nbn) Operating income breakdown (Nbn) • Healthy low-cost deposits Operating income Operating expenses Cost to Income Ratio Other income Foreign
Slide 18: Optimising earning assets to improve returns
Optimising earning assets to improve returns OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 2 Interest earning assets mix (Nbn) FBNHoldings gross loans (Nbn) Growth rate (q-o-q) Other entities FirstBank Interbank Treasury Bills Net Loans and Overdrafts Bonds N2,072 N2,221 N2,170 10.4% N2
Slide 19: FirstBank - Nigeria only (Loan book breakdown)
FirstBank - Nigeria only (Loan book breakdown) OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 7 Breakdown of gross loans by SBU (Nbn) Gross loans - Breakdown by sectors 2% Manufacturing 11% [11%] Institutional banking Retail banking Public sector 3% Corporate banking Commercial Banking P
Slide 20: Portfolio analysis – focus on short term liquidating assets
Portfolio analysis – focus on short term liquidating assets OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Loans and advances by maturity Loans and advances by type (First Bank of Nigeria only) (First Bank of Nigeria only) Overdrafts Term Loans Commercial loans 0 -30 days 1 - 3 months 3
Slide 21: Enhanced proactive portfolio management is a strong priority in current environment
Enhanced proactive portfolio management is a strong priority in current environment OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX 3 Asset quality trend (FBNHoldings) Evolution of impairments (FBNHoldings) NPL N‟bn NPL coverage (including statutory credit reserve) NPL ratio Impairment ch
Slide 22: FBNBank UK – Continued improvement in performance
FBNBank UK – Continued improvement in performance OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Selected financial summary 1 Loan book by sector Nbn 9M 14 FY 14 9M 15 y-o-y 1.4% 17.1% Gross Earnings 22.3 30.1 24.0 7.8% Agriculture, Forestry and Fishing 13.5% [9.8%] Interest Income 19.5
Slide 23: Business Groups
Business Groups FBNHoldings 23
Slide 24: Pre-consolidation gross earnings and profit before tax
Pre-consolidation gross earnings and profit before tax OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Commercial Banking – gross earnings Investment Banking and Asset Management – gross earnings 13.4% 359.5 65.5% 28.8 316.9 17.4 9M 2014 9M 2015 9M 2014 9M 2015 Insurance Group – gross ear
Slide 25: Contribution of the different business groups to total revenues
Contribution of the different business groups to total revenues OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX Commercial Banking – Focused on optimising assets, cost IBAM1 – Diversifying revenue streams and deepening customer optimisation and profitability relationships • Attain leaders
Slide 26: Outlook
Outlook FBNHoldings 26
Slide 27: Outlook still reflects the challenging environment
Outlook still reflects the challenging environment OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS OUTLOOK APPENDIX FY 2014 Results 9M 2015 Results 2015 Targets Deposit growth 4.2% -1.7% 0% Net loan growth 23.2% -12.4% -5% Net interest margin 7.6% 7.7% 7% – 7.5% Cost to income 66.6% 61.4% 63% Cost of risk
Slide 28: Contact Details
Contact Details Head, Investor Relations Oluyemisi Lanre-Phillips Email: oluyemisi.lanre-phillips@fbnholdings.com Phone: +234 (1) 9052720 Investor Relations Team investor.relations@fbnholdings.com Phone: +234 (1) 9051146 +234 (1) 9051386 +234 (1) 9051086 28
Slide 29: Appendix
Appendix FBNHoldings 29
Slide 30: Diversified Financial Holding Company FBN Holdings Plc
Diversified Financial Holding Company OVERVIEW FINANCIAL PROFILE BUSINESS GROUPS SUMMARY APPENDIX FBN Holdings Plc First Bank of Nigeria Kakawa Discount House FBN Insurance FBN Microfinance Bank Limited Limited Limited Limited First Pension FBN Capital Limited FBN General Custodian Limited Insurance
Slide 31: GDR Programme
GDR Programme FBNHoldings has a Sponsored Regulation S Global Depositary Receipt (RegS GDR) program • CUSIP: 30190K102 • ISIN: US30190K1025 • Ratio: 1 GDR : 50 Ordinary Shares • Depositary bank: Deutsche Bank Trust Company Americas • Depositary bank contact: Stanley Jones • ADR broker helpline: +1 2