Slide 1: Q1 2012 Results Presentation
Click to edit Master title style Q1 2012 Results Presentation Click to edit Master subtitle style to Investors & Analysts IFRS Compliant Results
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: Speakers
Speakers Godwin Emefiele – Managing Director/Chief Executive Officer Udom Emmanuel – Executive Director/Chief Financial Officer PeterAmangbo – Executive Director – Corporate Banking Andy Ojei–Executive Director-Enterprise and Risk Management 3
Slide 4: Agenda
Agenda Operating Environment Results P&L Group Balance By Segment Sheet By Geography Key Ratios Company Risk Management Strategy and Outlook Operational Highlights Q&A 4
Slide 5: The Nigerian Economy
The Nigerian Economy … Key GDP Growth: The Nigerian economy witnessed a 7.68% Foreign Reserves: Nigeria’s external reserves improved growth in the fourth quarter of 2011 compared to 8.60% Theme significantly by US$2.81bn to US$37.53bn in Q12012 compared recorded in Q4’10. The non-oil sector continue
Slide 6: Our Investment Proposition
Our Investment Proposition Key Strong earnings capacity, Solid capital adequacy, High liquidity, Declining NPLs, Theme Excellent technology and Well-motivated staff A dominant player in Corporate Banking. The Bank controls a significant share of the corporate clients in strategic sectors of the Ni
Slide 7: Agenda
Agenda Operating Environment Results P&L Group By Segment By Geography Key Ratios Company Risk Management Strategy and Outlook Operational Highlights Q&A 7
Slide 8: Financial Highlights
Financial Highlights Key Increased Efficiency Through Optimal Resource Allocation Theme Building A Shock-Proof Balance Sheet Gross Earnings: N72.4bn +33.36% YoY Net Interest Income: N38.3bn +34.90% YoY P&L Net Interest Margin: 8.34% (Annualized) +19.83% YoY PBT: N23.0bn +25.41% YoY PAT: N19.2bn +25.
Slide 9: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 3 mths to 3 mths to YOY Mar-12 Mar-11 Change Gross Income 72,356 54,257 33.36% Interest Income 52,826 35,887 47.20% Interest Expense -14,568 -7,527 93.54% Net Interest Income 38,258 28,360 34.90% Impairment Charge for Credit Losses -1,211 -3,934 -69.22% Net
Slide 10: Robust earnings and profitability...
Robust earnings and profitability... Net Interest Margin Comments Net Interest Margin: Notwithstanding the significant increase in our funding cost YoY, the Group maintained a strong Net Interest Margin through a more efficient balance sheet management. Improved Cost Income Ratio as our cost red
Slide 11: Revenue Base ...Sustained Diversification
Revenue Base …Sustained Diversification Q1 2012 Q1 2011 Interest Income PBT N'm Q1 12 Q1 11 YoY 26,173 22,305 17.34% Loans & Advances Government 7,454 2,772 168.90% Bonds 18,382 7,708 138.48% T-Bills & Inv. Sec Placements 582 3,159 -81.58% Advances Under 235 377 -37.67% Finance Lease Q1 2012 Q1 2011
Slide 12: Continuous efforts in cost-reduction strategies
Continuous efforts in cost-reduction strategies ….. Q1 2012 Q1 2011 Interest Expenses N'm Q1 12 Q1 11 YoY Current accounts 316 396 -20.20% Savings account 354 286 23.78% Time deposits 13,276 6,575 101.92% Inter-bank takings 425 51 733.33% Borrowed funds 196 219 -10.50% Q1 2012 Q1 2011 Operating Expe
Slide 13: Balance Sheet - Assets
Balance Sheet- Assets Group Group Group (N'm) Mar-12 Dec - 11 YTD Mar-11 Cash and balances with central banks 173,294 223,187 -22.35% 116,131 Treasury bills 534,523 516,142 3.56% 409,913 Due from other banks 274,473 236,170 16.22% 333,605 Loans and advances 909,466 893,997 1.73% 816,081 Investment s
Slide 14: Balance Sheet - Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group Group (N'm) Mar-12 Dec - 11 YTD Mar-11 Customer deposits 1,670,856 1,653,570 1.05% 1,435,695 Liabilities classified as held for sale 40,201 29,835 34.74% - On-lending facilities 53,427 49,370 8.22% 28,613 Borrowings 18,773 20,625 -8.98% 26,251 Current
Slide 15: Sustained assets & liabilities match..
Sustained assets & liabilities match.. Loans Growth Loans & Advances Q1 2012 Customer Deposits Deposits Mix Q1 2012 15
Slide 16: Liquid asset base and funding mix
Continued market dominance through strong liquid asset base and funding mix… Q1 2012 Liquid Assets Q1 2011 Q1 2012 Funding Mix Q1 2011 16
Slide 17: Agenda
Agenda Operating Environment Results P&L Group Balance By Segment Sheet By Geography Key Ratios Company Risk Management Strategy and Outlook Operational Highlights Q&A 17
Slide 18: P&L – By Segment
P&L – By Segment Investment General 3 Months Ended March 2012 Corporate & Mgmt & Health & Life (N’m) Retail Banking Stockbroking Insurance Others Eliminations Consolidated Total Revenue 70,248 237 3,101 617 1,847 72,356 Operating Expenses 49,073 31 2,007 80 1,847 49,344 Profit Before Tax 21,175 206
Slide 19: P&L – By Segment
P&L – By Segment Gross Revenue by Segment – Mar ‘12 Gross Revenue by Segment – Mar ‘11 Corporate Banking & Retail banking continue to be the hub of our business … 19
Slide 20: Agenda
Agenda Operating Environment Results P&L Group Balance By Segment Sheet By Geography Key Ratios Company Risk Management Strategy and Outlook Operational Highlights Q&A 20
Slide 21: P&L – By Geography
P&L – By Geography Nigeria (Assets 3 Months Ended Mar 2012 (N’m) Nigeria held for Sale) Rest of Africa Europe Eliminations Consolidated Total Revenue 66,072 3,955 2,890 1,286 -1,847 72,356 Operating Expenses 46,176 2,118 1,966 931 -1,847 49,344 Profit Before Tax 19,896 1,837 924 355 - 23,012 Tax -3,
Slide 22: P&L – By Geography
P&L – By Geography Gross Revenue by Geography – Mar ‘12 Gross Revenue by Geography – Mar ‘11 Our Nigerian business continues to be the main driver of profitability … Our Nigerian business continues providingto be 93%the of main driver gross of profitability … providing revenue 94.37% of gross revenu
Slide 23: Agenda
Agenda Operating Environment Results P&L Group Balance By Segment Sheet By Geography Key Ratios Company Risk Management Strategy and Outlook Operational Highlights Q&A 23
Slide 24: Healthy Risk Assets Portfolio
Healthy Risk Assets Portfolio… NPL Coverage Ratio Our Risk Management Strategy The Group considers sound risk management to be the foundation of long lasting financial institution. It continues to adopt a holistic and integrated approach to risk management hence, brings all risks together under
Slide 25: Focused risk management via portfolio diversification
Focused risk management via portfolio diversification Loans by Sector – Mar ‘12 No concentration risk 25
Slide 26: 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 – predominantly made up of Tier 1 capital. The increase inTier II capital was fueled by the general provisioning. 26
Slide 27: Agenda
Agenda Operating Environment Results P&L Group By Segment By Geography Key Ratios Company Risk Management Strategy and Outlook Operational Highlights Q&A 27
Slide 28: 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 sh
Slide 29: 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 30: Outlook and Prospects for FY2012
Outlook and Prospects for FY2012 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 a number of opportuni
Slide 31: Outlook and Prospects for FY2012
Outlook and Prospects for FY2012 Representative Office: We remain optimistic of the Deposit Base: Our drive for low cost and appropriately business opportunities inherent in the Peoples Republic of mixed deposit base to fund our credit and money market China hence, our resolve to officially open
Slide 32: Thank you
Q&A Thank you 32