Standard Chartered Plc · LSE:STAN
Standard Chartered — Standard Chartered Bank Kenya — FY2023 Earnings Presentation
24 slides from Standard Chartered's earnings presentation, Mar 12, 2024
Slide 1: Full Year 2023 Results and Strategy update
PUBLIC Full Year 2023 Results and Strategy update 12 March 2024
Slide 2: Kariuki Ngari Chemutai Murgor
PUBLIC Managing Director & Chief Executive Officer 03 - 10 Kariuki Ngari 21 - 23 Chief Financial Officer 12 - 19 Chemutai Murgor 2
Slide 3: Strategy Update
PUBLIC Strategy Update Kariuki Ngari Managing Director & Chief Executive Officer 3
Slide 4: Our Strategy
PUBLIC STRATEGY FINANCIAL RESULTS Our Strategy CONCLUSION Focused execution continues to deliver sustainably higher returns • Continued strong execution of our four strategic pillars Strategic Pillars Network Affluent Mass Retail Sustainability • Strong financial performance Financial Performance •
Slide 5: Executing our Strategy amidst a challenging macro-economic environment
PUBLIC STRATEGY Executing our Strategy amidst a challenging macro-economic environment FINANCIAL RESULTS CONCLUSION 5
Slide 6: Strategic Priority 1 of 4: Network
PUBLIC STRATEGY FINANCIAL RESULTS Strategic Priority 1 of 4: Network CONCLUSION Our strong network and superior digital solutions make us a top connector bank for our clients Our Strategic Advantages Focus Areas • Strong trade corridors support our ambition • Enhance client relationships with Global
Slide 7: Strategic Priority 2 of 4: Affluent
PUBLIC STRATEGY FINANCIAL RESULTS Strategic Priority 2 of 4: Affluent CONCLUSION We continue to accelerate growth in this segment through superior products, digital capabilities and partnerships Our Strategic Advantages Focus Areas • Access to our Wealth Management • Accelerate growth of the client
Slide 8: Strategic Priority 3 of 4: Mass Retail
PUBLIC STRATEGY FINANCIAL RESULTS Strategic Priority 3 of 4: Mass Retail CONCLUSION We continue to grow through our proven digital capabilities and value adding partnerships Our Strategic Advantages Focus Areas • End to end digital solutions for financial • Pivot towards ‘Do it Yourself’ digital-fir
Slide 9: Strategic Priority 4 of 4: Sustainability
PUBLIC STRATEGY FINANCIAL RESULTS Strategic Priority 4 of 4: Sustainability CONCLUSION We have made demonstrable progress implementing our sustainability pillar Our Strategic Advantages Focus Areas • Leveraging on our over 100 Sustainable • Sustainable Finance. Finance experts across the globe. • Re
Slide 10: Strategic Priority 4 of 4: Sustainability
PUBLIC STRATEGY Strategic Priority 4 of 4: Sustainability FINANCIAL RESULTS CONCLUSION We have made demonstrable progress implementing our sustainability pillar Progress- Responsible Company • 384,000 tree seedlings planted. • Achieved 27% reduction in carbon emissions from 2021 baseline. • Solar in
Slide 11: What does this translate to?
PUBLIC What does this translate to? Chemutai Murgor Chief Financial Officer 11
Slide 12: Solid Performance: 23% Revenue growth, 15% growth in PBT
PUBLIC STRATEGY Solid Performance: 23% Revenue growth, 15% growth in PBT FINANCIAL RESULTS CONCLUSION FY’23 performance (KES billion) Performance highlights FY’23 FY’22 Income Statement YoY • 32% growth in net interest income from client Net interest income 29.3 22.2 32% lending, increased short ter
Slide 13: Well positioned and diversified balance sheet
PUBLIC STRATEGY Well positioned and diversified balance sheet FINANCIAL RESULTS CONCLUSION FY’23 performance (KES billion) Performance highlights Balance Sheet (highlights) FY’23 FY’22 YoY Assets • Our total exposure to CBK and government securities Balances due from CBK 38.9 19.8 96% Investment in
Slide 14: Robust Balance Sheet: Customer Deposits up 23%, Customer Loans up 17%
PUBLIC STRATEGY FINANCIAL RESULTS Robust Balance Sheet: Customer Deposits up 23%, Customer Loans up 17% CONCLUSION Earning assets (KES billion) YoY Performance highlights Gross 9.5 9.2 9.7 11.3 +1.6 yield (%) 70% 55% 57% 57% -5% 245.1 232.8 221.3 221.6 +17% 121.5 126.0 139.4 • Strong pivot towards c
Slide 15: Highly profitable growth in cross-border corridors
PUBLIC STRATEGY FINANCIAL RESULTS Highly profitable growth in cross-border corridors CONCLUSION CCIB cross-border (network) income (KES billion) Performance highlights Corridor Europe Americas Asia Africa & the Middle East Contribution’23 45% 27% 16% 12% Contribution’22 45% 24% 18% 13% 75% • 2023 CC
Slide 16: Strong progress implementing our Digital strategy
PUBLIC STRATEGY FINANCIAL RESULTS Strong progress implementing our Digital strategy CONCLUSION Operating expenses (KES billion) YoY Performance highlights -20% 18.7 16.1 15.6 14.5 3.6 2.0 -44% 2.5 2.4 • KES 10.5 billion cumulative investments in the last 15.1 four years, 16% of the total cumulative
Slide 17: Strong cover ratio, improving loan book quality
PUBLIC STRATEGY FINANCIAL RESULTS Strong cover ratio, improving loan book quality CONCLUSION Credit impairment (KES billion)/Loan-loss rate (bps) YoY Performance highlights Loss rate 279 172 82 191 +109 bps 3.9 -160% • Impairments losses on loans and advances up by 3.4 KES 2.1 billion reflecting con
Slide 18: Strong and resilient performance across segments
PUBLIC STRATEGY Strong and resilient performance across segments FINANCIAL RESULTS CONCLUSION Segment Performance (KES billion) Performance highlights Segment CCIB CPBB C&O Corporate, Commercial & Institutional Banking (CCIB) FY'23 FY' 22 ∆YoY FY'23 FY' 22 ∆YoY FY'23 FY' 22 ∆YoY 11.2 7.6 47% 13.8 9.
Slide 19: Capital strongly positioned to support balance sheet growth
PUBLIC STRATEGY FINANCIAL RESULTS Capital strongly positioned to support balance sheet growth CONCLUSION Capital (KES billion) YoY Performance highlights +8% 51.4 45.7 46.7 47.4 0.2 5.9 5.3 -96% 6.5 51.2 • Capacity to support growth whilst managing 39.2 40.8 42.1 +22% regulatory requirements. • Alig
Slide 20: Our disciplined execution of the strategy in 2023 has created capacity for substantial shareholder distribution
PUBLIC Our disciplined execution of the strategy in 2023 has created capacity for substantial shareholder distribution Kariuki Ngari Managing Director & Chief Executive Officer 20
Slide 21: Sustainable returns to our shareholders
PUBLIC STRATEGY FINANCIAL RESULTS Sustainable returns to our shareholders CONCLUSION Earnings per share (KES) Dividend payout (KES) 32% 15% 29.0 22.0 19.0 23.0 36.17 16.0 31.47 10.5 14.0 23.49 13.95 10.5 5.0 6.0 6.0 31.12.20 31.12.21 31.12.22 31.12.23 31.12.20 31.12.21 31.12.22 31.12.23 • The Board
Slide 22: Financial performance summary
PUBLIC STRATEGY Financial performance summary FINANCIAL RESULTS CONCLUSION Profit before tax ▲ 15% to KES 19.7 billion Operating Income Operating costs Profit after tax KES 41.7 billion ▲ 23% KES 18.7 billion▲ 20% YoY ▲ 15% to KES 13.8 billion Customer L&A ▲17% KES 163.2 billion Customer Deposits ▲2
Slide 23: As we close
PUBLIC STRATEGY As we close FINANCIAL RESULTS CONCLUSION Outlook Potential Tailwinds • Global trade and investments to benefit our trade • Improving macro economic environment but geo-political risks corridors in Africa, Middle East and Asia. remain elevated. • Continued digitisation of services by
Slide 24: PUBLIC
PUBLIC 24
Standard Chartered Bank Kenya — FY2023 Earnings Presentation on 6ix