Zenith Bank Plc · NSENG:ZENITHBANK
Zenith Bank — FY2013 Earnings Presentation
30 slides from Zenith Bank's earnings presentation, December 2013
Slide 1: FY 2013 Group Results
FY 2013 Group Results Presentation to Investors & Analysts Click to edit Master title style IFRS Compliant Results December 2013 Click to edit Master subtitle style people | technology | service ZENITH BANK PLC people | technology | service
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 Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 4: The Nigerian Economy
The Nigerian Economy … GDP Growth: The GDP grew at the rate of 7.67% y/y in Q4 2013, up by 68bps from 6.99% Key recorded in the corresponding quarter of the previous fiscal year. The non-oil sector was the major driver of the growth recorded in Q4 2013; this Theme includes activities recorded in
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 Theme Listing on London Exchange: Zenith Bank has listed a non-capital raising GDR on the London Stock Exchange
Slide 6: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 7: Financial Highlights
Financial Highlights Key Impressive Performance in 2013 Theme Gross Earnings: N351.47bn +14.45% YoY Net Interest Income: N189.26bn +20.74% YoY Net Interest Margin: 8.70% +6.23% YoY P&L PBT: N110.60bn +8.32% YoY PAT: N95.32bn -5.33% YoY Customer Deposit: N2.28tn +18.01% (YTD) Balance Total Assets: N3
Slide 8: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 12 mths to 12 mths to YOY Dec-13 Dec-12 Change Gross Income 351,470 307,082 14.45% Continuing Operations: Interest Income 260,059 221,318 17.50% Interest Expense -70,796 -64,561 9.66% Net Interest Income 189,263 156,757 20.74% Impairment Charge for Credit Lo
Slide 9: Strengthening earnings and profitability
Strengthening earnings and profitability... Comments Consistently high Net Interest Margin Net Interest Margin (NIM): NIM has been on an increase over the last four years as a result of efficient balance sheet management. Cost to Income Ratio increased from 53.95% in 2012 to 57.10% in 2013. The
Slide 10: Revenue Base Sustained Diversification
Revenue Base …Sustained Diversification 2013 2012 Interest Income PBT N'million 2013 2012 YoY Inter-bank Placements 4,655 5,031 -7% T-Bills & Inv. Securities 77,728 74,364 5% Government Bonds 35,947 27,274 32% Loans & Advances 141,729 114,649 24% Total 260,059 221,318 18% Interest income from loans
Slide 11: Continuous efforts in cost-reduction strategies
Continuous efforts in cost-reduction strategies ….. 2013 Interest Expenses 2012 N'million 2013 2012 YoY Current accounts 4,223 3,828 10% Savings accounts 3,825 1,507 154% Time deposits 58,812 57,998 1% Inter-bank takings 2,478 504 392% Borrowed funds 1,458 724 101% Total 70,796 64,561 10% Interest E
Slide 12: Balance Sheet - Assets
Balance Sheet- Assets Group Group YOY (N'm) Dec-13 Dec-12 Change Cash and balances with central banks 603,851 332,515 81.60% Treasury bills 586,441 669,164 -12.36% Due from other banks 256,729 182,020 41.04% Loans and advances 1,251,355 989,814 26.42% Investment securities 303,125 299,343 1.26% Inve
Slide 13: Balance Sheet - Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group YOY (N'm) Dec-13 Dec-12 Change Customers deposits 2,276,755 1,929,244 18.01% Current income tax 7,017 6,577 6.69% Deferred income tax liabilities 678 5,584 -87.86% Other liabilities 215,643 117,355 83.75% On-lending facilities 59,528 56,066 6.17% Borro
Slide 14: Sustained assets & liabilities match
Sustained assets & liabilities match.. Loans Growth Loans & Advances 2012 2013 Deposits Growth 2013 Deposits Mix 2012 14
Slide 15: Liquid asset base and funding mix
Continued market dominance through strong liquid asset base and funding mix… 2013 2012 Liquid Assets N'million 2013 2012 YoY Cash 44,512 42,123 6% Operating accounts with CBN 210,646 110,256 91% Mandatory reserve deposits with CBN 348,693 180,136 94% Treasury bills 586,441 669,164 -12% Current balan
Slide 16: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 17: P&L - By Geography
P&L – By Geography 12 Months Rest of Gross Revenue Ended Dec 2013 Nigeria Europe Eliminations Consolidated Africa (N’m) 2013 Total Revenue 332,078 19,124 8,478 -8,210 351,470 Share of profit of - - - - 118 Associates Total Expense -230,305 -12,444 -5,489 6,306 -241,932 Profit Before Tax 102,832 6,68
Slide 18: P&L - By Sector
P&L – By Sector Discontinued Consolidated Corporate Institutional Public Retail Operations 12 Months Ended Dec 2013 (N’m) Total Revenue 151,373 54,399 44,174 85,204 16,320 351,470 Total Expenses -104,146 -37,427 -30,392 -58,621 -11,228 -241,814 Profit Before Tax 47,633 17,118 13,900 26,811 5,135 110
Slide 19: Deposits & Loans - By Sector
Deposits & Loans – By Sector 2013 Total Deposits - N2.28tn 2013 Gross Loans - N1.27tn 19
Slide 20: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
Slide 21: Healthy Risk Assets Portfolio
Healthy Risk Assets Portfolio… 11 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 coor
Slide 22: Focused risk management via portfolio diversification
Focused risk management via portfolio diversification Loans by Sector - 2013 Loans by Sector – 2012 o Gross Loans – N1.28tn o Gross Loans – N1.01tn No concentration risk 22
Slide 23: NPL by Segment
NPL by Segment 2013 2012 o Total NPLs – N37.15bn o Total NPLs – N31.93bn o NPL Ratio – 2.91% o NPL Ratio – 3.15% o We continue to develop our Risk Management Strategy and improve on the quality of our loan portfolio. o Overall NPL ratio of 2.91% is currently one of the lowest in the industry 23
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 Capital base – 99.66% 96.27% 97.32% 100.00% predominantly made up of Tier 1 (core capital) which consists of mainly share capital and 3.73% 2.6
Slide 25: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 5 Results - Group Speaker: Chief Financial Officer Stanley Amuchie Slides 7- 15 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter Amangbo Sli
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 Competitive Advantage Sectors 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 FY2014
Outlook and Prospects for FY2014 Mobile Banking: In a bid to encourage and promote person- Agriculture: The Federal government’s resolve to boost the agricultural sector in the country would no doubt create quite to-person payments and leverage on mobile phone channels as a number of opportuniti
Slide 29: Outlook and Prospects for FY2014
Outlook and Prospects for FY2013 Representative Office: We have officially opened a Deposit Base: Our drive for low cost and appropriately representative office in Beijing, the capital city of the Peoples mixed deposit base to fund our credit and money market Republic of China. The group is cert
Slide 30: Thank you
Q&A Thank you 32