First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — Investor Presentation (May 2014)
21 slides from First Holdco's investor presentation, May 5, 2014
Slide 1: Connected: Business Luncheon with Key Institutional Investors
Connected Growth through connected solutions Business Luncheon with Key Institutional Investors 5 May 2014
Slide 2: Presentation Outline
Presentation Outline 1 Introduction 2 Macroeconomic & Regulatory Environment Overview 3 FBN Holdings Performance Review 4 FBN Holdings Strategic Initiatives 2
Slide 3: Introduction to FBN Holdings Plc
Introduction to FBN Holdings Plc Business Description Group Structure • Established 120 years ago, FirstBank is the oldest bank in West Africa FBN Holdings PLC • FirstBank is the #1 banking franchise in Nigeria by total assets, loans, deposits, and branches • The Group employs about 9,849 staff, has
Slide 4: Macroeconomic & Regulatory Environment Overview
2 Macroeconomic & Regulatory Environment Overview 4
Slide 5: Stable macroeconomic environment buoyed by ongoing reforms
Stable macroeconomic environment buoyed by ongoing reforms…….. SUMMARY/ OVERVIEW FINANCIAL REVIEW BUSINESS GROUPS STRATEGY APPENDIX OUTLOOK Macro Factors Impact on FBN Holdings • Global economic growth was revised to 2.9% as at October 2013, dipping by 0.3% in comparison to 2012; emerging and develo
Slide 6: Macroeconomic trend supported by a growing population
Macroeconomic trend supported by a growing population…….. The Largest and Most Diversified Economy in Sub-Saharan Africa GDP Growth (%) 2013-18E Real GDP Growth ($bn) Nigeria $135bn 7.1% 7.0% South Africa $80bn 6.9% 6.6% Angola $50bn 6.3% Ethiopia $19bn Kenya $18bn Ghana $17bn Tanzania $14bn Côte d'
Slide 7: FBN Holdings Performance Review
3 FBN Holdings Performance Review 7
Slide 8: Growth hampered by regulatory challenges in 2013
The impressive growth trend in the last planning cycle hampered by regulatory challenges in 2013 FY………. Summary of industry policy changes 2013 Financial Impact Remedial Steps N389b of FBN deposit sterilized, Remodeling of the public sector business 1 Upward Review of CRR earning 0% (assets with
Slide 9: Significant growth across all financial metrics
In spite of the regulatory headwinds, FBN Holdings recorded significant growth across all financial metrics……… Business Growth, 2009 - 2013 CAGR Deposits 2.9 +22% 1.3 1.4 2.0 2.4 (N tn) Loans 1.5 1.8 +13% Significantt revenue 1.1 1.2 1.3 (N tn) loss due to CBN policy changes (tariff / charges, CRR,
Slide 10: Solid Financial Performance and Growth Metrics
Solid Financial Performance and Growth Metrics Low Operating Leverage and Strong, Resilient Performance Net Interest Income and Margin Operating Expenses and Cost Income Ratio 8.8% 8.0% 7.7% 64.3 % 62.5% 66.0% N226.6bn N230.1bn N193.5bn N185.0bn N58.8bn N51.5bn Dec-2012 Dec-2013 Q1-2014 Dec-2012 Dec
Slide 11: Stable Funding, Capital Base and Liquidity Position
…………..driven by Stable Funding, Capital Base and Liquidity Position Deposit Evolution Liquidity Ratio 47.1% 44.2% N2,395bn N2,929bn N2,855bn 38.0% 23% 21% 19% 20% 24% 27% 23% 23% 24% 34% 32% 30% Dec-2012 Dec-2013 Q1-2014 Dec-2012 Dec-2013 Q1-2014 Current Savings Term Domiciliary Capital Ratios1 Loan
Slide 12: Prudent Asset, Liability and Risk Management Policies
……..and Prudent Asset, Liability and Risk Management Policies Robust Loan Book Quality Supported by Best-in-Class Control Environment and Strong Monitoring Process NPL Ratio (First Bank of Nigeria Only) NPL Sector Exposure (First Bank of Nigeria Only) Oil & Gas - Services 5.1% 3.9% Agriculture 5.3%
Slide 13: Anchored on Cutting Edge Technology
……..anchored on Cutting Edge Technology Cutting Edge Mobile and Online Platforms with Advanced Security and Functionality Key Facts and Recent Innovations FirstMonie Key Figures • First-to-market in Nigeria with the multi-factor authentication technology, which enhanced the security of online transa
Slide 14: Contributions of Non-Bank Subsidiaries
……Buoyed by Contributions of Non-Bank Subsidiaries with FBN Capital leading the charge Commercial Investment Banking & Other Financial Insurance Banking Asset Management Services1 Current and Savings Mergers and Acquisitions Life Assurance Products Loan and Deposit Accounts Privatisations
Slide 15: Evidenced by our recent accolades
……Evidenced by our recent accolades FBN Holdings Adheres to the Highest Standards of Corporate Governance Recent Accolades Pearl Awards Best Bank Brand in Sectoral Leadership Nigeria 2013 Award 2013 Best Bank in Most Innovative SR!50 West Africa 2013 Company 2013 Best Retail Bank in #1 Banking Brand
Slide 16: FBN Holdings in Figures
FBN Holdings in Figures The Largest Retail Banking Network in Nigeria – Figures as at 31 March 2014 Ranking among Net Interest Net Interest Total Assets Nigerian Banks1 Income2 Margin2 N3,861 bn N225.2 bn 7.7% #1 NPL Ratio3 Loans/Deposits4 CAR5 RoAE6 3.6% 66.3% 16.8% 17.9% Active Customer Branches i
Slide 17: FBN Holdings Strategic Initiatives
4 FBN Holdings Strategic Initiatives 17
Slide 18: Strategic initiatives across our four business groups
Our strategic initiatives derive from our quest to remain dominant in our four business groups…….. FBN Holdings Plc Drive greater group coordination Institutionalize cross-sell and synergy extraction across the Group Implement structured shared services – HR, IT, Risk Management, Corporate Com
Slide 19: 2014 – 2016 Bank Strategic Initiatives
2014 – 2016 Bank Strategic Initiatives Expected areas of impact Enhance value chain banking (revenue from cash collections, liquidity management, • Non-interest revenue Transaction payments, trade, etc.), which holds a significant revenue and client-franchise upside • Cross-sell ratio 1 Banking op
Slide 20: The FBN Holdings proposition
The FBN Holdings proposition is hinged on….. • Our growing Pan African footprints which diversifies our earnings streams thereby hedging country-specific risks — Recent acquisition in 4 West African Countries — Growing performance of our Congo operation increasing contribution to the Banking Group P
Slide 21: 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) 9051146-7 21