First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — H1 2021 Earnings Presentation
27 slides from First Holdco's earnings presentation, Aug 2, 2021
Slide 1: H1 2021 Results Presentation
H1 2021 Results Presentation August 02, 2021
Slide 2: Disclaimer
Disclaimer This presentation is based on FBN Holdings Plc’s (‘FBNH’ or ‘FBNHoldings’ or the ‘Group’) unaudited financial statements for the period ended 30 June 2021. The Group’s Financial statements represent FBN Holdings Plc and its subsidiaries. FBNHoldings has obtained some information from sour
Slide 3: Key Highlights, Financial Review, Appendix
Key Highlights 04 Financial Review 10 Appendix 20
Slide 4: Key Highlights
FBNHoldings Key Highlights
Slide 5: H1 2021 highlights
Key Highlights H1 2021 highlights • Profit before tax of ₦45.2bn (up 9.2% y-o-y) • 48.1% increase y-o-y in non-interest Income • 20.0% decrease y-o-y in impairment charges • Continued expansion of electronic banking boosting revenue and driving financial inclusion • 32.7% increase y-o-y in e-banking
Slide 6: Management focus on strengthening the organisation, driving stability and renaissance
Key Highlights In the past 5 years, Management has focused on strengthening the organisation, driving stability and renaissance Optimising earnings through efficient Post 2016 H1 2021 tax balance sheet management and cost ROaE 2.1% 9.9% management NIR to 2016 H1 2021 Revenue diversification with foc
Slide 7: Creating an electronic banking unicorn
Key Highlights Creating an electronic banking unicorn Electronic Banking Revenue ₦’bn +32.7% 28.8 48.7 48.0 24.2% 23.5% 23.7% 21.7 34.0 14.4% 23.4% 15.1% 24.2% 29.0% 25.0 15.1% 21.8 30.0% 15.9% 30.6% 32.7% 31.5% 32.2% 29.6% 10.2% 9.5% 5.0% 7.4% 39.9% 7.4% 10.4% 58.4% 0.4% 11.5% 26.3% 23.3% 21.9% 23.
Slide 8: FBNHoldings today: Leading player with a solid platform to grow
Key Highlights FBNHoldings today: Leading player with a solid platform to grow 13 million 34+ million customer accounts Customer accounts 875 Business 818 locations Business locations1 8.8 million 11.4 million Our Vision ATM cards ATM cards TO BE THE LEADING AFRICAN FINANCIAL 1.1 million Firstmobile
Slide 9: 2024 strategic plan centers on delivering growth, improving returns and customer experience
Key Highlights 2024 strategic plan centers on delivering growth, improving returns and enhancing customer experience Strategic Priorities Key Enablers 2024 Financial Targets Drive revenue growth and diversification • Leveraging portfolio of businesses to deliver robust solutions to customers ROE • D
Slide 10: Financial Review
FBNHoldings Financial Review
Slide 11: Resilient performance
Financial Review Resilient performance Gross Earnings ₦’bn Net-Interest Income ₦’bn Non-Interest Income ₦’bn Operating Income ₦’bn Impairment Charge ₦’bn -1.7% -20.9% +48.1% +5.3% -20.0% 131.3 118.7 222.5 296.4 291.2 211.4 30.7 103.8 24.5 80.1 H1 20 H1 21 H1 20 H1 21 H1 20 H1 21 H1 20 H1 21 H1 20 H1
Slide 12: Driving stability and improving asset quality
Financial Review Driving stability and improving asset quality Post Tax ROaE (%) Net Interest Margin (%) Cost of Funds (%) NPL Ratio % NPL Coverage (%) 6.8 2.8 53.3 14.5 7.7 7.2 48.0 4.4 1.8 9.9 H1 20 H1 21 H1 20 H1 21 H1 20 H1 21 FY 20 H1 21 FY 20 H1 21 Post Tax ROaA (%) Cost to Income (%) Cost of
Slide 13: Revenue supported by improved non-interest income contribution
Financial Review Revenue supported by improved non-interest income contribution Gross Earnings ₦’bn Gross Earnings Mix Interest Income Mix • Gross earnings declined 1.7% y-o-y to ₦291.2bn, but improved 13.2% in Q2 21 from Q1 21 17.9% 27.0% 35.0% • Significant shift in earnings mix as 40.7% contribut
Slide 14: Enhancing non-interest income generative capacity
Financial Review Enhancing non-interest income generative capacity • Non-interest income increased 48.1% y-o-y to Non-interest Breakdown Net (₦’bn) Fees & Commission Breakdown Gross (₦’bn) ₦118.7 +48.1% +23.8% • Electronic banking fees grew by 32.7% y-o-y, despite regulatory developments reducing fe
Slide 15: Controlled costs despite inflation, devaluation and regulatory cost
Financial Review Controlled costs despite high inflationary environment, currency devaluation and increased regulatory cost OPEX Drivers (₦’bn) • Opex increased by 9.6% y-o-y to ₦152.6 bn; materially below the inflation rate of 17.8% • Regulatory cost increased by +35.4% y-o-y; the largest driver fo
Slide 16: Solid retail franchise continues to support liquidity
Financial Review Solid retail franchise continues to support liquidity • Customer deposits increased by 3.7% to ₦5.1 Customer Deposits Mix (₦’bn) trillion (FY 20: ₦4.9 trillion) • Liquidity position further supported by increased agent banking and e-banking growth H1 21 1,781 1,593 1,037 653 13 5,07
Slide 17: Increasing diversified loan book
Financial Review Increasing diversified loan book First Bank of Nigeria Loan Currency Mix First Bank of Nigeria Gross Loan per Sector 48.9% 50.4% 47.3% 54.2% 52.1% 52.5% H1 21 19.3% 16.0% 11.1% 7.4% 7.7% 7.2% 4.9% 5.2% 21.2% ₦2.2trn 51.1% 49.6% 52.7% 45.8% 47.9% 47.5% FY 20 17.7% 17.3% 9.0% 7.8% 7.5
Slide 18: Asset quality improvements supporting balance sheet strength
Financial Review Asset quality improvements supporting the drive to enhance balance sheet strength First Bank of Nigeria NPL per Sector NPL Ratio Agriculture H1 21 12.9% General Commerce 17.9% 14.2% 16.9% General FY 20 2.7% 26.0% Oil & Gas upstream 24.4% 22.8% 3.4% 4.1% Real Estate 4.4% 13.1% Oil &
Slide 19: Cleaner balance sheet and resilient earnings capacity
Financial Review Cleaner balance sheet and resilient earnings generative capacity continue to provide a solid platform for sustainable capital accretion FirstBank Nigeria CAR (%) • First Bank Nigeria H1 21 CAR at 16.8% including half year profit (15.7% exc. profit) 17.0 16.8 • Businesses across the
Slide 20: Appendix
FBNHoldings SY Appendix
Slide 21: Commercial Banking Group
Appendix Commercial Banking Group Driving sustainable growth and profitability • Strong performance despite a challenging operating Key financial highlights & performance ratios environment with 17.9% y-o-y profit before tax Income statement Statement of Financial Position • Enhanced earnings have b
Slide 22: Merchant Banking and Asset Management Group (FBNQuest)
Appendix Merchant Banking and Asset Management Group (FBNQuest) Fee/Annuity Income dominates as net interest margins contract Key Financial Highlights & Performance Ratios • Profit before tax declined by 19.4% y-o-y driven by a 53.0% decline in net interest income which Statement of Financial Positi
Slide 23: Benign improvement in operating environment
Appendix Benign improvement in operating environment Welcomed growth, though slow Increase in oil price helps to stabilise reserves 80 2.5 18.17 17.75 15.75 2 12.0 12.26 12.56 13.71 60 * 11.2 2.28 2.55 1.5 1.87 40 0.11 0.51 1 * 20 0.5 -3.62 -6.1 0 0 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3
Slide 24: Key regulatory and policy interventions
Appendix Key regulatory and policy interventions The CBN introduced receipt of The CBN extended the COVID-19 The CBN recently reviewed the relief (moratorium and interest minimum interest payable on diaspora remittances through The Securities and exchange CBN introduced Special International Money T
Slide 25: Global footprint
Appendix Global footprint Nigeria France UK Ghana Guinea Senegal Name Name Name Name Name Name FBN Holdings Plc. FBNBank UK Ltd. FBNBank UK Ltd. FBNBank Ghana FBNBank Guinea FBNBank Senegal Type Type Type Type Type Type Licensed financial holding Bank branch Licensed bank Licensed Bank Licensed Bank
Slide 26: Definitions
Appendix Definitions ₋ Cost-to-income ratio computed as operating expenses divided by operating income ₋ Cost of risk computed as annualised impairment charges divided by the average opening and closing gross loans balances ₋ Net-interest margin computed as annualised net interest income divided by
Slide 27: Contact details
Appendix Contact details Head, Investor Relations Tolulope Oluwole Tolulope.O.Oluwole@fbnholdings.com +234 (1) 905 2720 Investor Relations Team investor.relations@fbnholdings.com : +234 (1) 905 1086; 1147 27