EJF Investments Ltd GBP · LSE:EJFI
EJF Investments Ltd GBP — EJF Investments — H1 2023 Earnings Presentation
22 slides from EJF Investments Ltd GBP's earnings presentation, Sep 8, 2023
Slide 1: EJF Investments Limited H1 2023 Results Presentation
EJF Investments Limited H1 2023 Results Presentation 2023 www.ejfi.com Ticker: EJFI LN For professional investors only // Not for public distribution
Slide 2: Portfolio Summary
Portfolio Summary The chart below provides a breakdown of the portfolio in £ million at 31 December EJF Investments Limited (‘EJFI’ or the ‘Company’) primarily 2022 and 30 June 2023. invests in a diversified portfolio of debt issued by smaller U.S. Securitisations & Related banks and insurance compa
Slide 3: Returns Profile
Returns Profile Annualised Total Return Total Return Total Return for the since since Period1 Inception1 Inception1 (9.57%) 74.86% 9.14% ¹All figures are as at 30 June 2023. These are APMs as defined on pages 47 to 48 of the Interim Report. Please see Legal Disclosures on pages 18-21. 2
Slide 4: Valuation and Dividends
Valuation and Dividends Valuation Market View Share price Ordinary Share 2025 ZDP Share Market NAV per ordinary Net Asset Value discount to NAV per price price Capitalisation share¹ ordinary share¹ 30 June 2023: 30 June 2023: 30 June 2023: 30 June 2023: 30 June 2023: 30 June 2023: £98.7m 162p £66.3m
Slide 5: NAV Bridge - Gross and Net
NAV Bridge - Gross and Net1 Of the above – CDO Equity Tranches generated a loss of £7.3m loss, whilst CDO Manager Interest and MSRs generated a gain of £0.4m and £0.2m respectively. 1Expenses and Expenses reimbursed allocated to each portfolio line above based on average fair value during the period
Slide 6: Significant Investment Exposures at 30 June 2023
Significant Investment Exposures at 30 June 2023 CDO Equity Tranches The investments into the equity tranches of 7 CDOs, via EJF Investments LP, provide the Company exposure £79.5m to underlying collateral comprising 355 debt instruments issued by 160 US banks and 37 US insurance company unique issu
Slide 7: Banking Turmoil in the First Half of 2023
Banking Turmoil in the First Half of 2023 • Silvergate Bank, Silicon Valley Bank, and Signature Bank all had outsized exposures, if not focusing their entire business models, on serving the digital assets, venture-backed companies, or other technology-related industries. WHY THE FAILED • Silicon Val
Slide 8: Banking Turmoil in the First Half of 2023
Banking Turmoil in the First Half of 2023 • Silvergate Bank, Silicon Valley Bank, and Signature Bank all had outsized exposures, if not focusing their entire business models, on serving the digital assets, venture-backed companies, or other technology-related industries. WHY THE FAILED • Silicon Val
Slide 9: Why invest in U.S. Community Banks
Why invest in U.S. Community Banks Smaller Banks Have Greater Capital Ratios1 Commercial Bank Credit Quality Remains Pristine1 Tier 1 Leverage Ratio Credit Quality in the Banking Industry (1991-2023) 11.00% 4.00% 10.50% 3.54% 3.50% 10.00% 3.00% 2.67% 9.50% 2.50% 9.00% 2.00% 8.50% 1.65% 1.50% 1.61% 8
Slide 10: CDO Equity Tranches at June 2023
CDO Equity Tranches at 30 June 2023 Please see Legal Disclosures on pages 18-21. 9
Slide 11: Recap, Events Post Interim Period End and Outlook
Recap, Events Post Interim Period End and Outlook • Update to the composition of the Board of EJFI in line with corporate governance best practices. • Events in first half of the year may be regarded as a liquidity stress test of the system, resulting in limited failures largely driven by idiosyncra
Slide 12: Summary
Summary 74.86% Total Return1 and 9.14% Annualised Total Return1 since inception to June 2023 • Risk Retention Vehicle: Supports the $3.2bn securitisation platform of EJF. • Underlying exposure: Exposure to a portfolio of loans to US financial institutions and related assets, with an emphasis on floa
Slide 13: Any Questions
? Any Questions Please see Legal Disclosures on pages 18-21. 12
Slide 14: Appendix
Appendix Please see Legal Disclosures on pages 18-21. 13
Slide 15: Banking Turmoil in the First Half of 2023
Banking Turmoil in the First Half of 2023 Silvergate Capital Corporation (“SI”) / Silvergate Bank: SVB Financial Group (“SIVB”) / Silicon Valley Bank (“SVB”): • SI focused almost entirely on serving the digital asset industry. With the turmoil in • SIVB primarily served customers in the technology a
Slide 16: Summary Unaudited Financials
Summary Unaudited Financials 1 January 2023 to 1 January 2022 to Income Statement 30 June 2023 30 June 2022 £ million £ million Dividend Income from Subsidiary 4.0 4.5 Net (loss)/gain from Investment in Subsidiary (13.0) 8.1 Total Income (9.0) 12.6 Investment Management fee (0.5) (0.5) Other Operati
Slide 17: Summary Unaudited Financials
Summary Unaudited Financials Balance sheet 30 June 2023 31 December 2022 £ million £ million Investment in Subsidiary 121.7 132.0 Cash at EJFI level 0.3 0.4 Other Assets 0.4 0.4 Total Assets 122.4 132.7 ZDP shares (23.2) (19.7) Other Liabilities (0.5) (0.5) Total Liabilities (23.6) (20.2) Net Assets
Slide 18: Contact Information
Contact Information Enquiries For the Manager For the Independent Directors EJF Investments Manager LLC Joanna Dentskevich Peter Stage / Jay Ghatalia Alan Dunphy pstage@ejfcap.com / jghatalia@ejfcap.com Nick Watkins +44 203 752 6775 / +44 203 752 6776 jersey.bp2s.ejf.cosec@bnpparibas.com For the Bro
Slide 19: Legal Disclosures
Legal Disclosures PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS, WHICH MAY VARY. THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM AUSTRALIA, CANADA, SOUTH AFRICA, THE EUROPEAN ECONOMIC AREA ("E
Slide 20: Legal Disclosures
Legal Disclosures Statements of historical events are strategy and fund specific and may not apply to all products and services offered by the Company, the Manager or EJF. Certain statements may contain performance calculations which were prepared by EJF and contain assumptions about future delinque
Slide 21: Legal Disclosures
Legal Disclosures This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. The securities mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "US Securities Act") or w
Slide 22: Legal Disclosures
Legal Disclosures Each of Barclays, which is authorised by the Prudential Regulation Authority (the “PRA”) and regulated in the United Kingdom by the Financial Conduct Authority (the “FCA”) and the PRA, and Liberum, which is authorised and regulated in the United Kingdom by the FCA (together, Barcla