Zenith Bank Plc · NSENG:ZENITHBANK
Zenith Bank — Q1 2015 Earnings Presentation
30 slides from Zenith Bank's earnings presentation, March 2015
Slide 1: Q1 2015 Group Results Presentation to Investors & Analysts
Q1 2015 Group Results Presentation to Investors & Analysts March 2015 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 Matching towards exceptional performance in 2015 Theme Gross Earnings: N113.32bn +20.14% YoY Net Interest Income: N42.63bn -6.39% YoY Net Interest Margin: 6.20% -22.70% YoY P&L PBT: N33.13bn +14.56% YoY PAT: N27.68bn +16.91% YoY Customer Deposit: N2.68tn +5.73% YTD Balance T
Slide 8: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 3 mths to 3 mths to YOY Mar-15 Mar-14 Change Gross Income 113,322 94,324 20.14% Continuing Operations: Interest and similar income 81,421 71,435 13.98% Interest and similar expense -38,790 -25,893 49.81% Net interest income 42,631 45,542 -6.39% Impairment ch
Slide 9: Consolidating earnings and profitability...
Consolidating earnings and profitability... Comments Net Interest Margin Net Interest Margin (NIM) declined YoY by 22.7% (from 8.02% in Q1 2014 to 6.20% in Q1 2015) due to increased funding cost and additional CRR increase towards the end of the last financial year. Cost-to-Income Ratio declined
Slide 10: Revenue Base ...Sustained Diversification
Revenue Base …Sustained Diversification Interest Income Q1 2014 Q1 2015 PBT N'million Q1 2015 Q1 2014 YoY Interbank Placements 1,026 1,313 -22% Treasury Bills 13,832 18,986 -27% Govt & Other Bonds 7,221 8,883 -19% Loans & Advances 59,342 42,253 40% Total 81,421 71,435 14% - Interest income from T-bi
Slide 11: Continuous efforts in cost-reduction strategies
Continuous efforts in cost-reduction strategies ….. Q1 2015 Interest Expenses Q1 2014 N'million Q1 2015 Q1 2014 YoY Current accounts 1,211 1,023 18% Savings accounts 2,503 1,208 107% Borrowed funds 3,776 645 485% Time deposits 31,300 23,017 36% Total 38,790 25,893 50% Interest expense on time depo
Slide 12: Balance Sheet- Assets
Balance Sheet- Assets Group Group YTD Group (N'm) Mar-15 Dec-14 Change Mar-14 Cash and balances with central banks 630,185 752,580 -16.26% 586,747 Treasury bills 354,028 295,397 19.85% 502,135 Assets pledged as collateral 186,419 151,746 22.85% 6,930 Due from other banks 547,479 506,568 8.08% 357,00
Slide 13: Balance Sheet- Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group YTD Group (N'm) Mar-15 Dec-14 Change Mar-14 Customers deposits 2,682,575 2,537,311 5.73% 2,288,146 Derivative liabilities 4,573 6,073 -24.70% - Current income tax 13,632 10,042 35.75% 12,059 Deferred income tax liabilities 30 - - 678 Other liabilities
Slide 14: Sustained assets & liabilities match
Sustained assets & liabilities match…... Loans Growth Loans & Advances Q1 2014 Q1 2015 Deposits Growth Deposits Mix Q1 2015 Q1 2014 14
Slide 15: Liquid asset base and funding mix
Continued market dominance through strong liquid asset base and funding mix… Q1 2015 Liquid Assets Q1 2014 Current Current balances with balances with Placements banks outside with banks & banks within Nig. discount N'million Q1 2015 Q1 2014 YoY Nig. 26.6% 0.3% houses Cash 33,661 86,107 -61% 19.9% O
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 3 Months Ended Mar 2015 Rest of Gross Revenue Nigeria Europe Eliminations Consolidated (N’m) Africa Q1 2015 Total Revenue 104,040 7,821 3,143 -1,682 113,322 Share of profit of Associates - - - 36 36 Total Expense -75,201 -4,417 -2,294 1,682 -80,230 Profit Before Tax 28,839 3,404 8
Slide 18: P&L – By Sector
P&L – By Sector Gross Revenue 3 Months Ended Corporate Institutional Public Retail Consolidated Mar 2015 (N’m) Q1 2015 Total Revenue 52,940 15,082 13,213 32,088 113,322 Total Expenses -39,739 -12,837 -10,810 -16,808 -80,194 Profit Before Tax 13,200 2,245 2,403 15,279 33,128 Tax -2,171 -369 -395 -2,5
Slide 19: Deposits & Loans – By Sector
Deposits & Loans – By Sector Q1 2015 Total Deposits - N2.68tn Q1 2014 Total Deposits - N2.29tn Q1 2015 Gross Loans - N1.93tn Q1 2014 Gross Loans - N1.34tn 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 – Q1 2015 Loans by Sector – Q1 2014 o Gross Loans – N1.93tn o Gross Loans – N1.34tn Well Diversified Loan Portfolio 22
Slide 23: NPL by Segment
NPL by Segment Q1 2015 Q1 2014 Education 5.92% Oil and Gas Transportation 6.26% 0.08% Government 0.68% Public Utilities Communicati 0.68% on Others Financial 3.06% Power 5.19% 4.58% Services 27.02% Agriculture 0.77% Consumer Credit Real Estate 0.20% and General Construction Manufacturing and Agro- C
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 96.27% 97.32% 99.31% 98.90% Capital base – predominantly made up of Tier 1 (core capital) which consists of mainly share capital and reserves c
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 FY2015
Outlook and Prospects for FY2015 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