Slide 1: Zenith Bank Plc Group Results 9 Months Ended September 30, 2011
ZENITH BANK PLC GROUP RESULTS For 9 Months Ended September 30, 2011 Presentation to Analysts and Investors
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 under the historical cost convention
Slide 3: Agenda
Agenda Results Group P&L By Segment Balance By Geography Sheet Company Risk Management Key Strategy and Outlook Ratios Q&A Operational Highlights 3
Slide 4: Financial Highlights
Financial Highlights Key Robust income base Themes Positive Outlook for Q4’11 Sustained superior performance Gross Earnings: N183bn +31.65% YoY P&L Net Interest Income: N94bn +49.21% YoY Net Interest Margin: 10.5% +86.17%YoY PBT: N50bn +28.46% YoY PAT: N42.9bn +37.97%YoY Customer Deposit: N1.55trn +
Slide 5: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 9 mths to 9 mths to YOY Sep-11 Sep-10 Change Gross Income 182,955 139,601 31.1% Interest Income 119,720 92,283 30.0% Interest Expense 25,705 29,122 -12.0% Net Interest Income 94,015 63,161 49.0% Fees and Commission Income 43,162 30,971 39.0% Foreign Exchange
Slide 6: Robust earnings and profitability
Robust earnings and profitability... Comments PBT / PAT Cost Income Ratio: Our sustained cost reduction strategies have continued to yield the desired results with total cost to income ratio remaining steady at 65.88%, despite the increased mandatory provisioning made in Q3’11. Net Interest Margin:
Slide 7: Sustained strong earnings driven by increased transaction volumes
Sustained strong earnings....driven by increased transaction volumes Q3 2011 Interest Income Q3 2010 Q3 2011 Non-Interest Income Q3 2010 7
Slide 8: Cost reduction measures yielding results
Cost reduction measures…. .yielding results Q3 2011 Interest Expenses Q3 2010 Q3 2011 Operating Expenses Q3 2010 8
Slide 9: Balance Sheet - Assets
Balance Sheet - Assets Group Group Group (N'm) Sep-11 Dec - 10 Sep-10 Cash and balances with central banks 114,100 141,724 80,847 Treasury bills 442,944 298,869 355,843 Due from other banks 376,151 399,503 322,142 Loans and advances 839,863 713,285 701,265 On-lending facilities 41,649 22,536 - Advan
Slide 10: Balance Sheet - Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group Group (N’m) Sep-11 Dec-10 Sep-10 Customer deposits 1,545,114 1,318,072 1,278,010 Claims Payable 318 218 109 Liabilities on insurance contracts 3,119 2,287 2,144 On-lending facilities 43,966 26,049 - Borrowings 23,111 27,975 30,661 Current income tax 6,
Slide 11: Appropriately matched assets & liabilities
Appropriately matched assets & liabilities….. Loan Growth Loans & Advances Q3 2011 Deposits Deposit Mix Q3 2011 H1 2011 11
Slide 12: Sustained strong liquidity and right funding mix
Sustained strong liquidity and right funding mix Q3 2011 Liquid Assets Q3 2010 Q3 2011 Funding Mix Q3 2010 12
Slide 13: Agenda
Agenda Results Group P&L By Segment Balance By Geography Sheet Company Risk Management Key Strategy and Outlook Ratios Q&A Operational Highlights 13
Slide 14: P&L – By Segment
P&L – By Segment Investment General 9 Months Ended September 2011 Corporate & Mgmt & Health & Life (N’m) Retail Banking Stockbroking Insurance Others Eliminations Consolidated Total Revenue 171,725 1,626 8,627 2,910 -1,933 182,955 Operating Expenses 128,456 100 5,983 215 -1,933 132,821 Profit Before
Slide 15: P&L – By Segment
P&L – By Segment Q3 2011 Q3 2010 Gross Revenue PBT Our Corporate and Retail Banking segments still account for over 92% of the Group’s income stream … 15
Slide 16: Agenda
Agenda Results Group P&L By Segment Balance By Geography Sheet Company Risk Management Key Strategy and Outlook Ratios Q&A Operational Highlights 16
Slide 17: P&L – By Geography
P&L – By Geography 9 Months Ended September 2011 (N’m) Nigeria Rest of Africa Europe Eliminations Consolidated Total Revenue 173,420 8,765 2,704 -1,934 182,955 Operating Expenses -125,822 -7,200 -1,733 -1,934 -132,821 Profit Before Tax 47,598 1,565 971 - 50,134 Tax -6,608 -317 -259 - -7,184 Profit A
Slide 18: P&L – By Geography
P&L – By Geography Q3 2011 Q3 2010 Gross Revenue PBT Business from Nigeria continues to account for a substantial portion of the Group’s revenue base 18
Slide 19: Agenda
Agenda Results Group P&L By Segment Balance By Geography Sheet Company Risk Management Key Strategy and Outlook Ratios Q&A Operational Highlights 19
Slide 20: Effective Risk Management Processes
Effective Risk Management Processes… Highlights Coverage Ratio Coverage Ratio: Our coverage ratio rose to 109.59% in Q3’11 from 56.0% recorded in the first half of 2011. Loan to Deposit Ratio: Loan to Deposit Ratio grew from 55.97% in H1’11 to 56.60% in Q3’11. This still gives the group the competit
Slide 21: Maintaining our robust risk management culture
Maintaining our robust risk management culture Continuing to identify all risk exposures, threats and opportunities which are then managed with appropriate processes in line with best practice and regulatory requirements; “Adequacy and appropriateness remain our focal point in the constant reviews o
Slide 22: Growth ambitions supported by strong liquidity and capital position
Growth ambitions supported by strong liquidity and capital position Liquidity and Capital Adequacy Comfortable capital adequacy & liquidity ratios for the Bank – well above the regulatory and industry requirements. Capital Mix Consistently low leverage – capital base predominantly made up of Tier 1
Slide 23: Agenda
Agenda Results Group P&L By Segment Balance By Geography Sheet Company Risk Management Key Strategy and Outlook Ratios Q&A Operational Highlights 23
Slide 24: Strategies for driving our vision
Strategies for driving our vision 1 The Bank focuses on cost 2 The Bank accomplishes this effective deposits from the strategy by: Compete retail end of the market to lend Consistent focus and aggressively for to the corporate end with Delivering superior investment in attracting and market share, b
Slide 25: Creating quality and robust business models
Creating quality and robust business models Aggressive growth driven by a focus on quality and robust business models Sector Business Segments Business Model Operational Efficiency & Business line & Innovation Geography Large Corporate MNC Prompt service delivery Process review and realignment Finan
Slide 26: Our Key Growth Target Sectors
Our Key Growth Target Sectors Driving profitability with our competitive advantages Sector Identified Growth Competitive Advantage Sectors Business line & Geography Infrastructure Manufacturing Strong capital and liquidity Strong brand Oil and Gas (Upstream & Strong international rating Downstream)
Slide 27: Our Growth Horizon: A Sustainable Pace
Our Growth Horizon…… A Sustainable Pace Short Term Medium Term Long Term • Efficient and robust risk • Identifying all risk exposures, • Strengthen our institutional brand management structure driving down threats and opportunities which are by focusing on best banking NPL ratios then managed throug