Diamond Trust Bank Kenya Ltd. · NSEKE:DTK
Diamond Trust Bank Kenya — Investor Presentation (2021)
31 slides from Diamond Trust Bank Kenya's investor presentation, 2021
Slide 1: Investor Presentation FY 2021
INVESTOR PRESENTATION FY 2021
Slide 2: DTB Group Structure
DTB GROUP STRUCTURE as at December 2021 2
Slide 3: DTB's Footprint
DTB’s FOOTPRINT as at December 2021 570,867 352,816 2,156 Customers Mobile Banking Customers Employees ➢ Kenya: 279,965 ➢ Kenya: 194,812 ➢ Kenya: 994 ➢ Tanzania: 155,800 ➢ Tanzania: 81,327 ➢ Tanzania: 536 ➢ Uganda: 132,065 ➢ Uganda: 76,677 ➢ Uganda: 580 ➢ Burundi: 3,037 ➢ Burundi: 46 129 150 Branche
Slide 4: What Differentiates Us
WHAT DIFFERENTIATES US Commitment to a Diversified distribution sustained organisation- channels and footprint. wide culture of service ➢ a leading, Tier I East African commercial bank excellence. Extensive product headquartered in Nairobi, Kenya range, with growing emphasis on digital ➢ listed on t
Slide 5: DTB Vision 2020 Recap
DTB VISION 2020 RECAP DTB Vision 2020: ➢ Rank among the top tier banks by deposits. ➢ Be a sustainable deposit led bank (CASA). ➢ Play a leading role in transitioning economies to support economic development. ➢ Incorporate digital channels. 5
Slide 6: DTB Vision 2020 Recap
DTB VISION 2020 RECAP DTB Vision 2020 targeted DTB to rank among the top tier banks by deposits with a market share of over 5%. x5 growth in 10 years 6
Slide 7: DTB Vision 2020 Recap - Key Outcomes
DTB VISION 2020 RECAP- KEY OUTCOMES Key outcomes: ➢Gain in market share. ➢Growth in customer base. Market share of over 5% achieved in 2015. x3 279,965 x3 570,867 Growth Customers Growth Customers 100,083 187,398 Customers Customers 2021 2021 2011 2011 DTB Kenya DTB Group Customer Base Customer Base
Slide 8: DTB's Growth Strategy - Being Socio-Economically Relevant
DTB’S GROWTH STRATEGY- BEING SOCIO-ECONOMICALLY RELEVANT One in Five Adult East Africans banking with DTB by 2031 What is DTB’s value proposition/ rationale for existence? Centred Why should on the What is DTB’s differentiator vs a customer take a DTB Customer competition? product? Socio-Economic Re
Slide 9: Key Growth Initiatives - 2022 & Beyond
KEY GROWTH INITIATIVES– 2022 & BEYOND • High impact brand campaigns. • Digitally literate talent pool through new recruitments, re-skilling of existing employee • Sustain and build on DTB’s market position as a Tier I complement and retention of workforce. bank, with deposit-driven growth. • Augment
Slide 10: Key Growth Initiatives - Branch Expansion & Transformation
KEY GROWTH INITIATIVES– BRANCH EXPANSION & TRANSFORMATION Providing physical DTB is looking at opening 20 new Branch transformation access to existing and branches this year and another through which the role of prospective customers 20 branches by 2024 expanding existing branches at select in key l
Slide 11: Riding the Digital Disruption Wave
RIDING THE DIGITAL DISRUPTION WAVE Investment in Digital Technology and Knowhow (KShs Bn) KShs 3.5 Billion to be invested in 2022-2023 Investments Invested geared towards KShs 2.4 Billion between 2018 and 2021 digital transformation 11
Slide 12: Riding the Digital Disruption Wave: Channel Performance
RIDING THE DIGITAL DISRUPTION WAVE Channel Performance- FY 2021 Kenya Group Kenya 7% 93% Branches 88% of transactions done of transactions done outside branches outside branches 88% on mobile 78% on mobile banking platforms banking platforms 12% Branches 96% of mobile banking 88% of DTB’s retail sub
Slide 13: Channel Performance - Kenya
CHANNEL PERFORMANCE- KENYA No. of Mobile Banking No. of Internet Banking (i24/7) No. of POS Acquiring No. of ATM (m24/7) Transactions (Mn) Transactions (Thousands) Transactions (Thousands) Transactions (Thousands) 1,090 513 11 381 972 6 616 900 79% 77% 34% 7% FY 2020 FY 2021 FY 2020 FY 2021 FY 2020
Slide 14: DTB's Approach to Sustainability
DTB’s APPROACH TO SUSTAINABILITY 11 of 17 SDGs adopted Major Sustainability Milestones: DTB joined the UN Global Compact in 2021 and committed to support and implement the UNGC Principles on human rights, labour, environment, and anti- corruption. DTB has embarked on collecting, calculating, reporti
Slide 15: DTB's Approach to Sustainability
DTB’s APPROACH TO SUSTAINABILITY DTB hosted a series of financial literacy training DTB has collected and recycled over 4.5 tonnes of paper sessions aimed at empowering micro, small and waste since October 2019. medium-business owners to run their businesses in a sustainable and efficient manner. Th
Slide 16: Dividends
DIVIDENDS Dividend Payout Ratio 10.2% 9.7% 11.3% 10.9% 11.1% Nil 21.5% Dividend per share (KShs) 2.60 2.60 2.60 2.60 2.70 Nil 3.00 Payout ratio doubled in 2021 from 2019, the highest in 839 over 10 years 727 727 755 692 605 Dividends in Nil KShs Millions 2015 2016 2017 2018 2019 2020 2021 16
Slide 17: Diversification of Loan Book - Group
DIVERSIFICATION OF LOAN BOOK- GROUP Sector wise diversification Loan Book Currency Mix 48% 48% 52% 52% LCY FCY FY FY 2021 2020 Geographical Diversification 73% 16% 17% 10% 1% 0.2% DTB Kenya DTB Tanzania DTB Uganda DTB Burundi 17
Slide 18: Sector-wise Analysis of Loan Book and NPAs - Group
SECTOR-WISE ANALYSIS OF LOAN BOOK AND NPAs- GROUP 45.1 FY 2021 21.6 23.6 16.8 16.1 13.3 15.6 10.0 7.5 6.7 6.2 2.8 5.2 3.2 2.6 2.0 0.4 0.6 0.1 0.4 0.2 0.0 Trade Real Estate Manufacturing Tourism Personal Transport And Agriculture Building And Financial Energy And Mining And Household Communication Co
Slide 19: Balance Sheet Highlights - Group
BALANCE SHEET HIGHLIGHTS- GROUP Loan book classification Provision Split Provision Movement (KShs Mn) (KShs Mn) 12% 11% 11% 20% 11,354 9,702 78% 68% 1,638 1,943 1,281 1,009 FY 2021 FY 2020 FY 2020 FY 2021 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 19
Slide 20: Non-Performing Loans & Coverage Ratios
NON-PERFORMING LOANS & COVERAGE RATIOS NPA Ratio Evolution (%) 15.8 14.1 13.1 12.0 11.9 12.7 8.2 10.3 7.6 3.4 3.4 0.6 FY 2019 FY 2020 FY 2021 Industry Gross NPA Ratio (Kenya) Group Gross NPA Ratio Group COR Kenya Gross NPA Ratio Specific Provision/ NPA Coverage Ratio (%) 43.3 39.4 33.2 FY 2019 FY 20
Slide 21: Capital Strength
CAPITAL STRENGTH Kenya Group 20.3% 19.6% 22.5% 21.2% 18.7% 18.6% 20.7% 19.9% 16.0% 16.0% 14.5% 14.5% 16.0% 16.0% 14.5% 14.5% 11.5% 11.5% 10.5% 10.5% 11.5% 11.5% 10.5% 10.5% FY 2020 FY 2021 FY 2020 FY 2021 Min Core Capital/RWA Board Minimum Core Capital Min Core Capital/RWA Board Minimum Min Total Ca
Slide 22: Liquidity
LIQUIDITY Liquidity (%) Kenya 61.6 54.8 56.0 20.0 20.0 20.0 FY 2019 FY 2020 FY 2021 Min. Liquidity (Statutory) DTB Kenya Group 60.4 56.0 56.3 20.0 20.0 20.0 FY 2019 FY 2020 FY 2021 Min. Liquidity (Statutory) Group 22
Slide 23: Balance Sheet Highlights - Group
BALANCE SHEET HIGHLIGHTS- GROUP YoY FY 2020 FY 2021 Growth Net Loans KShs 209 Bn KShs 220 Bn +5.7% & Advances Non- performing KShs 22 Bn KShs 29 Bn +29.7% loans ASSETS Gov- KShs 147 Bn KShs 168 Bn +13.9% Securities The Group’s asset growth has been fueled by double Total KShs 425 Bn KShs 457 Bn +7.5
Slide 24: Balance Sheet Growth - Group
BALANCE SHEET GROWTH- GROUP 6% 14% 1% 11% 9% 13% 21 Bn 33 Bn growth in Government growth in customer securities deposits 24
Slide 25: Steady Deposit Growth - FY 2021 Group
STEADY DEPOSIT GROWTH- FY 2021 GROUP Deposit Mix 60% liquidity ratio supported 60% 57% 54% by stable funding mix on the back of strong 43% 46% deposit growth. 2020 2021 Corporate Retail FY 2020 FY 2021 Currency Mix FY 2021 33% 35% 11% 52% 51% 69% growth in deposits 13% 13% largely organically. 1% 31
Slide 26: Contribution to Group Balance Sheet as at FY 2021
FINANCIAL PERFORMANCE: CONTRIBUTION TO GROUP BALANCE SHEET AS AT FY 2021 (KSHS) FY 2021 FY 2020 : 320 Bn (69.9%) : 305 Bn (71.8%) : 69 Bn (15.1%) : 61 Bn (14.8%) Total Customer Assets : 53 Bn (12.4%) Deposits : 64 Bn (14.0%) : 4 Bn (0.9%) : 4 Bn (0.9%) FY 2021 FY 2020 : 457 Billion : 425 Billion : 2
Slide 27: P&L Highlights
P&L HIGHLIGHTS KENYA GROUP FY 2021 FY 2020 NIM 12.7 Bn 12.0 Bn 6% Net Interest 20.0 Bn 18.1 Bn NIM 4.4% 4.6% Income 11% 5.2% 5.2% FTI Total Non- FTI 24.2% 25.7% 4.1 Bn 4.1 Bn Interest 6.3 Bn 6.1 Bn 24.0% 25.3% 2% 3% Income Gross 16.8Bn 16.2 Bn Operating 26.3 Bn 24.2 Bn 4% Income 9% CTI 6.6 Bn 6.8 Bn
Slide 28: P&L Highlights - Group
P&L HIGHLIGHTS- GROUP Operating Expenses Credit Impairment (KShs Mn) 14,000 52% 51% 51% 12,000 14,307 50% 12,621 10,000 11,354 7,623 7,486 49% 9,641 8,000 48% 6,000 47% 47% 4,000 46% 2,952 2,980 4,721 4,840 2,000 45% 0 44% FY 2020 FY 2021 Credit Impairment General Provision Specific Provision FY 202
Slide 29: P&L Highlights: PBT Contribution by Subsidiary
P&L HIGHLIGHTS PBT Contribution by Subsidiary Amounts in KShs ‘Mn’ 4.4% 208 DTBI 3.5% 231 2.2% 105 BR 2.3%155 9.4% 437 UG 15.2% 1,010 14.2% 664 TZ 12.6% 834 69.7% 3,255 KE 66.3% 4,396 FY 2020 FY 2021 29
Slide 30: Key Financial Ratios
KEY FINANCIAL RATIOS FY FY FY FY 2021 2020 2021 2020 Kenya Group Loan to Deposit 70.5% 74.5% 66.5% 70.0% CASA Ratio 40.4% 39.7% 47.9% 46.0% NPL Ratio 15.3% 11.7% 12.3% 10.1% NPL Coverage 37.4% 43.0% 39.4% 43.3% Ratio Net Interest Margin 4.4% 4.6% 5.2% 5.2% Fee Income Ratio 24.2% 25.7% 24.0% 25.3% Co
Slide 31: We welcome all feedback via email
We welcome all feedback via email on dtbinvestorrelations@dtbafrica.com All image rights and credits due to the photographers of the images.
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