Standard Chartered Plc · LSE:STAN
Standard Chartered — Standard Chartered Bank Kenya — FY2019 Earnings Presentation
26 slides from Standard Chartered's earnings presentation, Mar 19, 2020
Slide 1: Standard Chartered Bank Kenya Limited Full Year 2019 Results
Standard Chartered Bank Kenya Limited Full Year 2019 Results 19 March 2020
Slide 2: Kariuki Ngari, Chief Executive Officer
Kariuki Ngari Chief Executive Officer 1
Slide 3: We are delivering on our strategic commitments
We are delivering on our strategic commitments We have achieved important milestones on our strategic priorities in 2019 • The significant investment in Digital is starting to pay-off Deliver our network • We continue to cement our leadership in Wealth Management as we grow our affluent business Tra
Slide 4: Our purpose drives our business decisions and priorities
Our purpose drives our business decisions and priorities Our purpose: Driving commerce and prosperity through our unique diversity We understand our We will lead sustainable We support the We will maximise responsibilities financing communities where we return from investment work and live in our pe
Slide 5: We are positioned to transform and disrupt with digital
We are positioned to transform and disrupt with digital … Strategic priorities Financial information We have … Launched the Retail Digital Bank Digital • 70 services on the SC Mobile app Cost-effectiveness and time-efficiency Increasingly how Digitise client journey • Handling 52% of service request
Slide 6: … and are seeing encouraging early signs of progress
… and are seeing encouraging early signs of progress Strategic priorities Financial information Recent progress Future initiatives Mobile lending (including SME) 26k+ accounts opened through the SC Mobile platform in 9 months Enhanced CDM capabilities and increased count 2x improvement in sales/rate
Slide 7: We continue to cement our leadership in Wealth Management in Kenya
We continue to cement our leadership Wealth Management in Kenya Strategic priorities Financial information Available on SC Mobile App • Home, Motor, Travel and Farewell insurance • Local currency Treasury Bills (T-bills) and Bonds • Offshore mutual funds with renowned global fund managers • Foreign
Slide 8: We are developing best-in-class capabilities
We are developing best-in-class capabilities Strategic priorities Financial information Recent progress Future initiatives Gone live in 2020 on mobile for: • Increase uptake of existing digital products (FX, • Fixed Income (local currency T-bills and Bonds) Investments and Insurance) • Farewell insu
Slide 9: Our global network is a key differentiator
Our global network is a key differentiator Strategic priorities Financial information SCB global network Recent progress Europe & • KES 5Bn+ financing to SME distributors In: 71% Americas Out: 44% of MNCs (ecosystem) • 60% of CIB income is generated from the network. Africa & In: 14% SCB Middle East
Slide 10: Optimising low-returning segments and improving productivity
Optimising low-returning segments and Improving productivity Strategic priorities Financial information Recent progress On-going initiatives • CB has turned around to profitability, 2019 PBT at • Digitisation of credit decisioning KES 529Mn (2018: KES 9Mn loss); • Enhancement of the branch network –
Slide 11: Investing to enhance cyber security and financial crime compliance capabilities
We are investing to enhance our cyber security and financial crime compliance (FCC) capabilities Strategic priorities Financial results Training • Increased training and awareness among staff and clients Enhanced capabilities Enhanced operating model • investments undertaken to further • to clarify
Slide 12: Our approach to Sustainability
Our approach to Sustainability We support our clients through our core business to promote sustainable development We strive to manage our business sustainably and responsibly We aim to create a more inclusive Sustainability Priorities economy by sharing our skills and Three priorities that embed ex
Slide 13: Promoting Sustainable Finance
Promoting Sustainable Finance Managing environmental and social risks responsibly Our commitments • We are a signatory to The UN Sustainable • Partner with the government and other private Development Goals (SDGs) sector participants • Greatest opportunities in Kenya will be in: • Provide financing
Slide 14: Chemutai Murgor, Chief Financial Officer
Chemutai Murgor Chief Financial Officer 13
Slide 15: Financial performance in FY'2019
Financial performance in FY’ 2019 Strong capital and improving profitability Strategic priorities Financial results (KES bn) FY’19 FY’18 YoY1 Operating income 28.7 28.6 0% Operating expenses (15.9) (14.9) (7%) • Income broadly flat reflecting focus on balance sheet quality Net impairment losses (0.6
Slide 16: Financial performance summary
Financial performance summary 2019 Segment highlights Strategic priorities Financial results Operating income • Underlying costs (excluding • 70% y/y drop in ECL. • 3% increase in PBT. • 8% growth in Loans & Strong balance sheet remained flat y/y investments) flat y/y. • Cover ratio up 300 bps • EPS
Slide 17: Improving credit quality
Improving credit quality …with lower impairment losses Strategic priorities Financial results Credit impairment (KES mn) 86% 70% 4,186 • Continued improvement in credit quality 1,931 573 Significant reduction in credit FY'17 FY'18 FY'19 impairment on loans Gross NPL (KES bn) • 7% reduction in gros
Slide 18: Broad-based balance sheet growth
Broad-based balance sheet growth Strategic priorities Financial results Earning assets (KES bn) YoY 237 229 +5% 209 217 126 129 123 119 +8% 111 99 100 +1% 86 • Growth in customer loans across all segments 31.12.16 31.12.17 31.12.18 31.12.19 • Targeted financing to value chains in the Government Secu
Slide 19: Strong capital position
Strong capital position Strategic priorities Financial results Capital (KES bn) CAR 20.91% 18.52% 19.47% 17.73% 42.1 42.2 41.8 43.0 6.8 6.6 6.3 7.3 • Well capitalised to support sustainable growth opportunities 35.3 35.6 35.5 35.7 • Prudent surplus to regulatory requirements • Aligned to our capital
Slide 20: Kariuki Ngari, Chief Executive Officer
Kariuki Ngari Chief Executive Officer 19
Slide 21: Dividend announcement
Dividend announcement We are pleased to announce a final ordinary dividend of KES 15.00 for every ordinary share, which will bring the total 2019 dividend to KES 20.00, up 5% 20
Slide 22: Covid-19 response: we care about our employees, clients and community
Covid-19 response: we care about our employees, clients and community • We have instigated precautionary measures to protect our employees and clients a Enforced travel restrictions Covid-19 Update Significantly enhanced cleaning and sanitisation in all our premises • Not practicable to quantify
Slide 23: We are executing our strategy to create the leading bank for clients in Kenya
We are executing our strategy to create the leading bank for clients in Kenya Strategic priorities Financial information Our strategy remains appropriate We will continue to invest in areas of existing strength and to create new differentiated advantages We remain cognisant of our responsibility
Slide 24: Standard Chartered
Standard Chartered & 23
Slide 25: Appendix: Glossary
Appendix: Glossary Abbreviation Description AfCFTA African Continental Free Trade Agreement ASEAN Association of South East Asian Nations ATM Automated teller machine AUM Assets under management bn Billions CAGR Compound annual growth rate CAR Capital adequacy ratio CASA Current Accounts and Savings
Slide 26: Appendix: Important notice concerning forward-looking statements
Appendix: Important notice concerning forward-looking statements Important Notice This document contains or incorporates by reference “forward-looking statements” regarding the belief or current expectations of Standard Chartered Bank Kenya Limited (the “Company”), the Board of the Company (the “Dir
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