Diamond Trust Bank Kenya Ltd. · NSEKE:DTK
Diamond Trust Bank Kenya — H1 2020 Earnings Presentation
39 slides from Diamond Trust Bank Kenya's earnings presentation, 2020
Slide 1: Investor Presentation
DIB =" INVESTOR PRESENTATION
Slide 2: Who We Are
Vision: Enabling people to advance with confidence and success. Values: Our values are the fundamental principles that define our culture and are brought to life in both our attitudes and our behavior; as we create value for our various stakeholders. Our values shape the way we operate and serve our
Slide 3: DTB Group Structure & Footprint
DTB GROUP STRUCTURE & FOOTPRINT : 246,084 618,058 : 209,086 Customers : 160,144 : 2,744 Insurance Agency (Subsidiary) 100.00% 160 : 67 : 37 : 69 ATMs : 56 : 1,058 : 528 137 : 28 Over 1,800 : 1,300 2,288 : 655 Branches : 36 POS Merchants : 142 : 414 3 :4 Staff :47
Slide 4: DTB commits KShs 100 million to COVID-19 relief
DTB’s COVID-19 COMMUNITY RELIEF EFFORTS DTB commits KShs KShs 100 million to KShs 50 Mn COVID-19 relief 50 Mn National COVID-19 DTB Initiatives Emergency Response Fund 4
Slide 5: DTB's COVID-19 Community Relief Efforts
DTB’s COVID-19 COMMUNITY RELIEF EFFORTS Mombasa County Fund Kiambu County Fund Nairobi City Primary School KShs 2.5 Mn donated to the Kisii County towards a digital solution to enable data management to increase Over 6,000 families the efficiency and reached through the improve visibility in the cou
Slide 6: Macro-Economic Highlights
MACRO- ECONOMIC HIGHLIGHTS 6
Slide 7: Macro-Economic Highlights - East Africa
GDP Growth -0.3% Ke nya Kenya 5.4% MACRO- ECONOMIC HIGHLIGHTS- Tanzania Tanz ania 1.9% 6.3% EAST AFRICA Uganda 1.8% Uganda 4.9% -5.5% Burundi Burundi 1.8% 2020 (projected) 2019 Source: IMF (June 2020) Exchange Rate to USD Kenya 106.4 KShs- USD 101.1 Tanzania 2,295.0 TShs - USD 2,278.0 3,730.0 Uganda
Slide 8: Macro-Economic Highlights - Kenya
MACRO- ECONOMIC CBR & Average Inflation Rates (%) HIGHLIGHTS- KENYA 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 9.00 8.25 8.25 8.25 8.25 7.25 7.00 7.00 7.00 5.78 6.37 5.04 5.16 5.32 5.40 5.24 5.19 5.19 5.20 5.51 5.62 5.47 4.68 4.65 4.67 4.91 4.59 CBR Inflation Source: KNBS (June 2020) 12 Month Priv
Slide 9: DTB Strategy
DTB STRATEGY 9
Slide 10: DTB Vision 2020
DTB VISION 2020 A leading commercial bank and a significant participant in the economies where it operates: - Rank among the top tier banks by liabilities - Be a sustainable deposit led bank (CASA) - Play a leading role in transitioning economies to support economic development Achieve the vision wh
Slide 11: DTB Vision 2020
DTB Vision 2020 Powerd by Innovation Centred on Customer OTB | DIAMOND TRUST BANK
Slide 12: Channel Performance
CHANNEL PERFORMANCE 12
Slide 13: Channel Performance - Kenya
H1 2020 CHANNEL PERFORMANCE- 4% KENYA 82% 13% 3% 2% 87% of transactions Mobile & Branches ATMs POS done outside DTB Internet branches. 70% of DTB H1 2019 customers subscribe to mobile banking. 76% 19% 3% 2% Mobile & Branches ATMs POS 80% of mobile Internet banking subscribers use the channel regular
Slide 14: DTB Mobile Banking - m24/7
DTB MOBILE BANKING- m24/7 Transact on-the-go from the comfort of your location day and night with m24/7! Key Features: • Check your account balances and statements • Transfer funds to DTB accounts, via PesaLink or RTGS • Transfer funds from your account to mobile money • Pay bills and top up airtime
Slide 15: Channel Performance - Kenya Mobile Banking
CHANNEL PERFORMANCE- No. of Mobile Banking (m24/7) Transactions (Mn) KENYA 11.2 MOBILE BANKING m24/7 transaction count up by 14% 9.9 H1 2020 H1 2019 Value of m24/7 Transactions (KShs Bn) 84.0 m24/7 transaction values up by 19% 70.3 15 H1 2020 H1 2019
Slide 16: Channel Performance - Mobile Banking Transaction Type
CHANNEL PERFORMANCE- Mobile Banking Transaction type (% value) KENYA 57.8% 55.5% KShs 49 Bn worth of B2B transfers in 2020. 28.3% 19.9% 13.0% 9.3% 8.8% 6.5% 0.5% 0.4% B2B B2C FUNDS TRANSFER C2B BILL PAYMENTS H1 2020 H1 2019 16
Slide 17: DTB Internet Banking - i24/7
DTB INTERNET BANKING- i24/7 enables businesses and individuals to transact seamlessly on internet-ready devices irrespective of their i24/7 location. Key Features: • Real-time access to account information from any where in the globe. • Capability to initiate Single Payments and Bulk Payments at hig
Slide 18: Channel Performance - Online Banking
CHANNEL PERFORMANCE- No. of Online Banking (i24/7) KENYA Transactions 240,890 ONLINE BANKING i24/7 transactions up by 3% 233,466 H1 2020 H1 2019 Value of i24/7 Transactions (KShs Bn) 56 Average of 2,000 transactions per business day done on i24/7 54 18 H1 2020 H1 2019
Slide 19: Channel Performance - POS
CHANNEL PERFORMANCE- No. of POS Acquiring Transactions KENYA 220,954 POS transaction count up by 39% 158,838 Expanding DTB’s intermediary role HY 2020 HY 2019 to a wider eco system beyond Value of POS Acquiring Transactions (KShs Bn) just the Bank’s customers 1.3 POS transaction value up by 1.0 30%
Slide 20: Channel Performance - ATM
CHANNEL PERFORMANCE- No. of ATM Transactions KENYA 607,403 Decline in number of ATM transactions by 506,393 17% H1 2020 H1 2019 Shifting towards cashless transactions Value of ATM Transactions (KShs Bn) 5.8 4.6 H1 2020 H1 2019 20
Slide 21: Financial Performance
FINANCIAL PERFORMANCE 21
Slide 22: Balance Sheet Highlights - Group
BALANCE SHEET H1 19 H1 20 HIGHLIGHTS- GROUP Net Loans & Advances KShs 190.9 Bn KShs 201.5 Bn 6% JUNE 2020 Gov- ASSETS Securities KShs 118.3 Bn KShs 131.0 Bn 11% Total Assets KShs 375.9 Bn KShs 388.3 Bn 3% Customer KShs 283.1 Bn KShs 280.4 Bn -1% LIABILITIES Deposits 22
Slide 23: Balance Sheet Highlights - Kenya
BALANCE SHEET H1 19 H1 20 HIGHLIGHTS- KENYA Net Loans & Advances KShs 144.8 Bn KShs 151.6 Bn 5% Gov- ASSETS Securities KShs 89.0 Bn KShs 98.9 Bn 11% Total Assets KShs 280.1 Bn KShs 284.3 Bn 2% Customer KShs 205.0 Bn KShs 195.3 Bn -5% LIABILITIES Deposits 23
Slide 24: Total Assets - Subsidiaries Contribution
TOTAL-ASSETS SUBSIDIARIES H1 2020 H1 2019 CONTRIBUTION 1% 1% 0% 0% 12% 12% 14% 15% Total Assets Total Assets KShs 388 KShs 376 billion billion 72% 73% 24
Slide 25: Sector-wise Analysis of Loan Book and NPLs - Group
SECTOR-WISE HY 2020 ANALYSIS OF 48.4% LOAN BOOK AND 24.9% NPLs- 17.8% 17.6% 16.4% 13.3% 5.4% GROUP 15.7% 3.0% 7.7% 7.5% 3.9% 0.4% 6.4% 4.7% 1.2% 1.1% 3.4% 0.0% 0.1% 1.0% 0.1% Stable sector-wise exposure between H1 2019 and H1 2020. Loans NPL HY 2019 59.6% 25.8% 22.3% 16.6% 14.4% 10.2% 6.7% 5.2% 4.5%
Slide 26: Loanbook Performance - Non Performing Loans - Group
LOANBOOK NPL Movement Analysis (%) PERFORMANCE- 12.7 12.0 13.1 NON PERFORMING 6.5 6.6 7.0 LOANS- GROUP 1.8 0.5 0.6 NPL ratio stable and well below industry H1 2019 FY 2019 Industry NPL Ratio (Kenya) (Source: CBK) Group NPL Ratio H1 2020 Group CoR average. Coverage Ratio Analysis (%) 41.6 Increase in
Slide 27: Net Loanbook - Contribution by Subsidiaries
NET LOANBOOK- H1 2020 H1 2019 CONTRIBUTION BY SUBSIDIARIES 1% 1% 8% 7% 16% 16% Net loan Net loan book KShs book KShs 202 billion 191 billion 75% 76% 27
Slide 28: Sector-wise Restructures - Kenya
SECTOR-WISE Facilities Restructured Relating to COVID-19 RESTRUCTURES- KENYA 2.7% Trade 3.2% 4.7% Real Estate • Moratorium of up to 1.4% 0.3% 23.5% 6.7% 1.9% Tourism,restaurants and 2.1% 12 months. 7.4% hotels 34.4% • Extension of tenor. Manufacturing 10.1% • Cost of restructuring 8.2% Transport and
Slide 29: Deposit Mix Group
DEPOSIT MIX Deposit by Type H1 2019 GROUP 33% 53% 13% 1% Fixed Call Savings Current Deposit by Type H1 2020 34% 52% 13% 1% Fixed Call Savings Current 29
Slide 30: Total Deposits - Contribution by Subsidiaries
TOTAL TOTAL DEPOSITS DEPOSITS- CONTRIBUTION 72% BY SUBSIDIARIES 70% 15% 12% 0% 17% 13% Jun-19 1% DTB KENYA DTB TANZANIA Jun-20 DTB UGANDA DTB BURUNDI 30
Slide 31: Strong Capital Buffers
STRONG CAPITAL Core Capital to RWA (%) Total Capital to RWA (%) BUFFERS Kenya Kenya 21.1 20.9 21.0 18.7 19.1 19.3 Ample headroom on 14.5 14.5 14.5 key capital ratios 10.5 10.5 10.5 FY 2018 FY 2019 H1 2020 FY 2018 FY 2019 H1 2020 Min Core Capital/RWA Core Capital /RWA Min Total Capital/RWA Total Capi
Slide 32: Liquidity
LIQUIDITY Liquidity (%) Kenya 54.8 54.4 53.5 Pointer to 20.0 20.0 20.0 underlying resilience FY 2018 FY 2019 HY 2020 Min. Liquidity (Statutory) DTB Kenya Group 56.2 56.0 56.3 20.0 20.0 20.0 FY 2018 FY 2019 HY 2020 Min. Liquidity (Statutory) Group 32
Slide 33: P&L Highlights
P&L H1 19 H1 20 HIGHLIGHTS Kenya Group KShs KShs Net Interest KShs KShs 12.3 Bn 11.5 Bn -6% Income 16.3 Bn 15.8 Bn -3% Total Non- KShs KShs PBT drop by KShs KShs Interest 3.0 Bn 3.2 Bn 6% 25% 1.6 Bn 2.5 Bn 49% Income Gross KShs KShs KShs KShs Operating 19.3 Bn 19.0 Bn -2% 13.9 Bn 14.0 Bn 0.3% Income
Slide 34: P&L Highlights - Subsidiary PBT Contribution
P&L HIGHLIGHTS Subsidiary PBT Contribution (KShs Mn) 57 Overall H1 2020 DTB Burundi 22% PBT 69 6% contribution from 97 subsidiaries DTIA -6% 92 impacted by increased Cost of Risk, 333 reinforced by DTB Uganda -17% 275 prudence and conservatism 585 DTB Tanzania -3% 570 H1 19 HY H1 20 HY 34 2019 2020
Slide 35: Key Financial Ratios
KEY FINANCIAL H1 19 FY 19 H1 20 RATIOS Kenya Group Return on Equity 12.2% 11.5% 9.2% 12.8% 12.1% 8.1% Return on Asset 1.8% 2.0% 1.7% 2.1% 1.9% 1.4% NPL Ratio 6.2% 6.9% 7.1% 6.5% 6.6% 7.0% NPL Coverage 45.6% 34.1% 43.2% 41.6% 33.2% 41.9% Cost of Risk -0.1% -0.0% 1.7% 0.5% 0.6% 1.8% Fee Income Ratio 2
Slide 36: New Initiatives
NEW INITIATIVES 36
Slide 37: DTB New Products - Digital Account
DTB NEW PRODUCTS- With the DTB digital account, you can open an DIGITAL account whenever, wherever! ACCOUNT Features: • Available in KES • No opening balance • No monthly fee • No minimum balance • Free access to m24/7 and e-statements • Access to virtual card (optional) Outgoing Limits: • Monthly –
Slide 38: DTB New Products - Salary Advance
DTB NEW PRODUCTS- The Salary advance solution is aimed at enabling SALARY SMEs offer a salary advance proposition to their staff members to reduce additional financial ADVANCE constraints. Key Features & Benefits: • Digital loan product – No paper work required • Pre-approved credit limit – The limi
Slide 39: Scan the QR to view DTB's 2019 Integrated Report
Scan the QR to view DTB’s 2019 Integrated Report and Financial Statements.
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