First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — H1 2016 Earnings Presentation
28 slides from First Holdco's earnings presentation, Jun 30, 2016
Slide 1: Half year ended 30 June 2016 Investors & Analysts Presentation
Half year ended 30 June 2016 Investors & Analysts Presentation
Slide 2: Disclaimer
DISCLAIMER This presentation is based on FBN Holdings Plc‟s („FBNH‟ or „FBNHoldings‟ or the „Group‟) unaudited IFRS results for the six months ended 30 June, 2016. The Group's financial statements have been prepared using the accounts of the subsidiaries and businesses within FBNHoldings. FBNHolding
Slide 3: Outline
Outline Operating Environment Pg 5 FBNHoldings at a Glance Pg 7 - 10 Financial Review Pg 12 – 22 Strategic Review Pg 24 – 25 Appendix Pg 28 3
Slide 4: Operating environment
FBNHoldings Operating environment
Slide 5: Operating & regulatory environment
Operating & regulatory environment OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX • Fitch announced the downgrade of Nigeria’s long-term foreign currency Issuer Default Rating (IDR) to ‘B+’ from ‘BB-’ and long-term local currency IDR to ‘BB-’ from ‘BB’ on the back
Slide 6: FBNHoldings at a glance
FBNHoldings FBNHoldings at a glance
Slide 7: Key highlights
Key highlights OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Total assets Customer deposits Loans & advances (net) Gross loans/deposits FY15:N4,166.2bn FY15:N2,970.9bn FY15:65.9% FY15:N1,817.3bn H116:N4,804.2bn H116:N3,097.1bn H116:75.2% H116:N2,111.8bn Gross earn
Slide 8: Global footprint: building a stronger, well-diversified financial services group
Global footprint: building a stronger, well-diversified financial services group OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Nigeria Ghana • Name FBN Holdings Plc. • Name FBNBank Ghana • Type Licensed financial holding company • Type Licensed Bank • Established
Slide 9: FBNHoldings – our main operating companies
FBNHoldings – our main operating companies OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX FBN Holdings Plc1 Investment Banking and Asset Commercial Management Merchant Banking & Insurance Insurance Banking Asset Management2 Provides Merchant Banking, Financial Advi
Slide 10: FBNHoldings' contribution by business groups
FBNHoldings‟ contribution by business groups OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Commercial Banking Gross Earnings H1 15 [N248.3bn] H116 [N243.9bn] ∆ -1.8% Profit Before Tax H115 [N47.4bn] H116 [N36.0bn] ∆ -24.0% Merchant Banking and Asset Management Gro
Slide 11: Financial review
Financial review FBNHoldings 11
Slide 12: Income statement and balance sheet snapshots
Income statement and balance sheet snapshots OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Income statement Nbn FY 14 FY 15 y-o-y H1 15 H1 16 y-o-y Key ratios FY 14 FY 15 H1 15 H1 16 Gross earnings 481.8 505.2 4.9% 271.3 267.9 -1.2% Net interest margin1 7.6% 8.1%
Slide 13: Income statement evolution
Income statement evolution OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX H1 2015 (Nbn) 205.8 73.1 61.9 194.6 119.9 74.7 22.6 52.1 12.0 40.1 Interest income Interest expense Non-interest Net revenue 1 Operating PPOP 1 Impairment Profit 2 before tax Tax Profit after
Slide 14: Balance sheet efficiency and capital evolution
Balance sheet efficiency and capital evolution OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Balance sheet efficiency Capital ratios 2 FirstBank (Nigeria) and FBN Merchant Bank Total RWA (N'bn) Tier 1 capital ratio Leverage1 (times) Gross loans to deposits Liquidi
Slide 15: Breakdown of customer deposits
Breakdown of customer deposits OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX 2 Deposits by type Nbn Deposits by SBU trend Nbn FirstBank (Nigeria) Current accounts Savings accounts Term deposits Domiciliary accounts Retail banking Private banking Corporate banking
Slide 16: Gross earnings and margin analysis
Gross earnings and margin analysis OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX 1 Gross earnings breakdown (Nbn) Net interest margin drivers Deposits cost Cost of funds Interest Income Non Interest Income Loan yield Asset yield -1.2% Securities yield Net interest
Slide 17: Operating income vs. operating expenses
Operating income vs. operating expenses OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Operating income and expenses (Nbn) Operating income breakdown (Nbn) Net interest income Net fee & commission income Operating income Operating expenses Cost to Income Ratio Heal
Slide 18: Breakdown of loans and advances across the Group
Breakdown of loans and advances across the Group OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX FBNHoldings gross loans by business groups 1 FirstBank (Nigeria) & its Subsidiaries gross loans) 2 Commercial Banking Merchant Banking & Asset Management FirstBank (Nige
Slide 19: FirstBank (Nigeria) & FBNBank UK - loans and advances by sector
FirstBank (Nigeria) & FBNBank UK - loans and advances by sector OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX H116 FirstBank (Nigeria) gross loans by sectors Manufacturing 10.9% [13.0%] ₋ Gross loans at the Group level increased 18.9% y-t-d driven by the c.40% 3.9
Slide 20: Asset quality (1)
Asset quality (1) OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Loans and advances by maturity Loans and advances by type FirstBank (Nigeria) FirstBank (Nigeria) Overdrafts Term Loans Commercial loans 0 -30 days 1 - 3 months 3 - 6 months 6 - 12 months 1 - 3 years
Slide 21: Asset quality (2)
Asset quality (2) OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Asset quality ratios H1 16 NPL evolution FBNHoldings FirstBank (Nigeria) NPL N‟bn NPL coverage (including statutory credit reserve) Cost of risk NPL ratio N88.9bn N-0.8bn N484.7bn 127.0% 116.5% 531.7
Slide 22: Asset quality (3)
Asset quality (3) OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Oil & Gas NPLs NPLs by SBU Nbn FirstBank (Nigeria) FirstBank (Nigeria) Oil & Gas services Oil & Gas downstream Oil & Gas upstream Retail Banking Public Sector Institutional Banking Corporate Banking P
Slide 23: Strategic review
Strategic review FBNHoldings 23
Slide 24: Group strategic framework
Group strategic framework OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX 1 2 3 STRATEGY Structural changes in the Improve cost and capital Enhance revenue growth risk-taking culture, processes efficiency and oversight • Customer selection • Increased control on pro
Slide 25: Goal: to return value to shareholders
Goal: to return value to shareholders OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Key measures FY2015 H12016 FY2016 (actual) (actual) (guidance) Deposit growth -2.6% 4.2% 10% - 12% Cost Efficiency Net loan growth -16.6% 16.2% 25% Optimisation of Capital 7.5% – 8
Slide 26: 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 26
Slide 27: Appendix
Appendix FBNHoldings 27
Slide 28: Definition of terms
Definition of terms OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX ₋ Cost-to-income ratio computed as operating expenses divided by operating income ₋ Leverage ratio computed as total assets divided by total shareholders‟ funds ₋ Loans to deposits ratio computed as