Stanbic Holdings Plc · NSEKE:SBIC
Stanbic — FY2021 Earnings Presentation
36 slides from Stanbic's earnings presentation, March 2022
Slide 1: Financial Results Presentation
STANBIC HOLDINGS PLC FINANCIAL RESULTS PRESENTATION FOR THE YEAR ENDED 31 DECEMBER 2021
Slide 2: Best Trade Finance Bank in Kenya
BEST TRADE FINANCE BANK I N K E N YA BEST INVESTMENT B AN K I N K E N YA Driving Kenya’s Growth
Slide 3: Table of Contents
TA B L E O F C O N T E N T S 01 WELCOME REMARKS 03 PURPOSEFUL TRANSFORMATION AS WE DELIVER OUR STRATEGY 02 OPERATING ENVIRONMENT 04 DELIVERING SUSTAINABLE RETURNS
Slide 4: Welcome Remarks and Operating Environment
WELCOME REMARKS AND O P E R AT I N G ENVIRONMENT PATRICK MWEHEIRE - CHIEF EXECUTIVE, STANBIC HOLDINGS PLC KES T O TA L D I V I D E N D 3.6B ( 5 0 % O F 2 0 2 1 PAT )
Slide 5: Operating Environment - Key Highlights
OPERATING ENVIRONMENT - KEY HIGHLIGHTS 10.0% GDP growth rates 8.1% 80.00% Inflation rates 8.0% 6.4% 6.5% 69.4% 6.0% 5.4% 4.8%5.3% 5.3% 4.5% 60.00% 3.7% 4.0% 2.9% 2.0% 40.00% 0.0% -0.3% Kenya Uganda Tanzania South Sudan 20.00% 14.0% -2.0% 5.62% 5.73% 2.5% 2.9% 3.2% 4.2% -4.0% 2020 Actual 2021e 2022f
Slide 6: Operating Environment - Recovery Despite Uncertainty
OPERATING ENVIRONMENT - RECOVERY DESPITE UNCERTAINITY Improved macro outlook Political risk ▪ Supported by increased Government ▪ Russia-Ukraine conflict. spending on infrastructure. ▪ Upcoming general elections in Kenya. ▪ Delayed implementation of Revitalized ▪ Higher projected GDP growth rates. P
Slide 7: Fundamental Drivers to Support Ongoing Economic Growth
FUNDAMENTAL DRIVERS TO SUPPORT ONGOING ECONOMIC GROWTH, AS WELL AS STRONG GROWTH IN FINANCIAL SERVICES FOR THE NEXT DECADE Growing Increasing Expanding markets for Rapid and sustained mobile penetration and focus on financial economic digital payment sustainable services growth solutions adoption de
Slide 8: Purposeful Transformation as We Deliver Our Strategy
PURPOSEFUL T R A N S F O R M AT I O N AS WE DELIVER O U R S T R AT E G Y CHARLES MUDIWA - CHIEF EXECUTIVE, STANBIC BANK RETURN ON EQUITY 13.3% (UP 29%)
Slide 9: Reflecting on Our Growth Journey
REFLECTING ON OUR GROWTH JOURNEY SHARE CAPITAL KES millions 56,452 Total dividends paid out (2008 - 2021) : 51,730 KES 20.8b 40,141 27,241 19,248 2008 2012 2016 2020 2021 PROFIT AFTER TAX KES billions 8.0 7.2 7.0 6.4 Net Asset Value per share 2008 : KES 48.7 6.0 4.9 5.2 5.0 4.0 3.0 Net Asset Value p
Slide 10: Recap of Our Strategy
RECAP OF OUR STRATEGY Our Purpose Kenya / South Sudan is our home, we drive her growth To be a leading financial services organisation in Kenya and South Sudan, delivering exceptional client Our Vision experiences and superior value Our strategic priorities: What we need to do to deliver our Transfo
Slide 11: Purposeful in Our Response as We Deliver Our Strategy
PURPOSEFUL IN OUR RESPONSE AS WE DELIVER OUR STRATEGY Focused and deliberate in our actions to facilitate return to growth and rebound for our clients and community THREE PHASE APPROACH 1. RESPOND 2. RESTORE 3. REBOUND Address immediate Covid-19 threat Facilitate return to growth Adapt to the new no
Slide 12: Delivering Our Strategy - Adapting to the New Normal
DELIVERING OUR STRATEGY - ADAPTING TO THE NEW NORMAL Defend our current client franchise Future ready transformation ❑ Customer numbers growth ▪ Total customer base grew by 20% year on year ❑ Enhancing customer experience ▪ Active customers grew by 31% year on year ▪ Self onboarding, omnichannel ▪ P
Slide 13: Transforming Client Experience and Executing with Excellence
DELIVERING OUR STRATEGY - TRANSFORMING CLIENT EXPERIENCE AND EXECUTING WITH EXCELLENCE Accelerated digital banking Uplifting our clients financially Driving sustainable growth Digital Lending Smart Direct ✓ Instant loans: KES 5.6b ✓ For just KES 100 per month our customers income is secure Driving s
Slide 14: Delivering Our Strategy - Our People, Our Priority
DELIVERING OUR STRATEGY - OUR PEOPLE, OUR PRIORITY SAFETY AND WELLNESS FUTURE PROOF SKILLS ▪ COVID-19 vaccination drives - 89% of employees vaccinated ▪ Trained staff on future skills and signature programs ▪ Held several wellness webinars ▪ Conducted personal health screening sessions ▪ Catered for
Slide 15: Safeguarding and Empowering Our Communities
DELIVERING OUR STRATEGY – SAFEGUARDING AND EMPOWERING OUR COMMUNITIES Green light planet - USD 75m sustainability-linked loan Over 10k individuals screened free of charge Purpose Expand access to off-grid solar solutions to 10m households in the next 5years Donated over 161k Personal Protective Equi
Slide 16: Trusted Financial Partner
TRUSTED FINANCIAL PARTNER What are we known for? ▪ Best Investment Bank in Kenya 2013 – 2021 ▪ Best Trade Finance Bank in Kenya 2016, 2017 - 2019, 2021 ▪ Best Private Bank in Kenya 2017 - 2019 ▪ Best FX provider in Kenya 2014 - 2018 ▪ Best Corporate Bank 2016, 2017 ▪ Safest Bank in Kenya 2017, 2018
Slide 17: Delivering Sustainable Returns
DELIVERING S U S TA I N A B L E RETURNS DENNIS MUSAU – ACTING CHIEF FINANCIAL AND VALUE OFFICER KES P R O F I T A F T E R TA X 7.2B (UP 39%)
Slide 18: Financial Performance Highlights
FINANCIAL PERFORMANCE HIGHLIGHTS 8% 12% 3% 53% 24.9b 4.4% 50.9% 1.4% Total revenue Net Interest margin Cost to income Credit Loss ratio 2020: 23.2b 2020: 3.9% 2020: 52.2% 2020: 3.01% 39% 29% 39% 137% KES 7.2b 13.3% 18.23 9.00 Profit after tax Return on equity Earnings per share Dividend per share 20
Slide 19: Strong Business Momentum in 2021
STRONG BUSINESS MOMENTUM IN 2021 Dec 2021 Dec 2020 Change KEY TAKEOUTS KES m KES m % >100% Net interest income The Group (Kenya Bank, South Sudan branch, SBG Securities and 14,373 12,795 12 Stanbic Insurance Agency Limited) reported a profit after tax of KES Non-interest income 7.2b; 10,616 10,442 2
Slide 20: Revenue
REVENUE KES millions KES millions 12,000 25,000 20,567 20,302 10,000 20,000 8,000 14,373 6,484 6,382 Trading and other 15,000 12,795 Interest income income 6,000 10,000 Interest expense Net fees and 7,507 4,000 6,194 Net interest income commissions 5,000 2,000 4,132 4,060 - - Dec 2021 Dec 2020 Dec 2
Slide 21: Operating Expenses and Credit Impairment
OPERATING EXPENSES AND CREDIT IMPAIRMENT KES millions KES millions 6,000 14,000 52.5% 4,876 4,862 52.2% 5,000 12,000 52.0% 4,000 10,000 6,190 6,205 3,000 51.5% 2,524 2,569 8,000 Other operating expenses 2,000 6,000 Staff costs 51.0% 50.9% 1,000 4,000 6,519 5,929 13 50.5% 2,000 - (45) Credit imp Gene
Slide 22: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS 0.1% 11% 19% 17% KES KES KES 9.25% 328.9b 185.3b 242.3b Asset quality (NPL Total assets ratio) Customer loans Customer deposits 2020: 11.48% 2020: 328.6b 2020: 158.2b 2020: 217.4b 3% 92% 47.9% 15.3% 17.3% Earning assets Liquidity ratio Core capital Total capital 2020: 89% St
Slide 23: Growth in Key Performance Drivers
GROWTH IN KEY PERFORMANCE DRIVERS KEY TAKEOUTS KES millions 2021 2020 % change Assets ❑ A more efficient and optimal balance sheet Financial investments 59,535 87,584 (32%) compared to a similar period last year. Loans and advances to banks 44,008 38,119 15% Loans and advances to customers 185,313 1
Slide 24: Customer Loans and Advances
CUSTOMER LOANS AND ADVANCES Net Loans and advances to customers Loans and advances by business unit KES millions CHNW CHNW 27% 30% 190,000 185,313 CIB 185,000 2021 CIB 2020 48% 54% 180,000 BCC 19% BCC 175,000 22% 170,000 165,000 Loans and advances by product 160,000 158,180 Home loans 18% 20% 155,00
Slide 25: Improvement in Asset Quality
IMPROVEMENT IN ASSET QUALITY Decrease in Non-performing loans (NPLs) NPL and CLR ratio KES millions 14.00% 26,000 25,038 12.00% 11.93% 11.48% 25,000 10.00% 9.56% 9.87% 9.25% 24,000 8.00% 6.00% 23,000 22,504 4.00% 3.01% 22,000 2.00% 1.86% 1.40% 1.41% 1.64% 21,000 0.00% Dec 2021 Dec 2020 Q4 2021 Q3 20
Slide 26: Deposits
DEPOSITS KES millions KES millions Chart CIB Title BCC CHNW 300,000 6% 2% 242,345 3% 100% 250,000 217,444 2021 26% 90% 194,222 191,585 72,538 68,813 200,000 80% 62% 70% 150,000 60% 56,467 49,436 100,000 50% 40% 50,000 LC acceptances Current accounts 30% Savings accounts Call deposits 20% 113,340 99,
Slide 27: Funding, Liquidity and Capital Remain Solid to Support Growth
FUNDING, LIQUIDITY AND CAPITAL REMAIN SOLID TO SUPPORT GROWTH Funding Liquidity ratio (Bank only) Capital adequacy ratio (Bank only) 120% RWA - Risk weighted assets 60.0% 56.4% 20.0% 18.1% 100% 50.0% 47.9% 18.0% 17.3% 17% 16% 16.0% 16.0% 15.3% 14.5% 3% 3% 80% 2% 14.5% 2% 40.0% 14.0% 4% 13% 12.0% 10.
Slide 28: Subsidiary and Segment Performance
SUBSIDIARY AND SEGMENT PERFORMANCE
Slide 29: Subsidiary and Branch Performance
SUBSIDIARY AND BRANCH PERFORMANCE Stanbic Holdings PLC PAT: 7.2b 39% up Stanbic Bank Kenya Stanbic South Sudan Stanbic Bancassurance SBG Securities Intermediary Ltd Dec 2021 YoY Var Dec 2021 YoY Var Dec 2021 YoY Var Dec 2021 YoY Var PAT KES 6.8b 39% up PAT KES 0.3b 21% down PAT KES 99m 67% up PAT KE
Slide 30: Summary Performance of Corporate and Investment Banking (CIB)
SUMMARY PERFORMANCE OF CORPORATE AND INVESTMENT BANKING (CIB) KEY TAKEOUTS KES millions 2021 2020 % change ❑ Growth in net interest income as a result of Net interest income 6,542 6,001 9% margin improvement and growth in the loan book. Non-interest revenue 7,636 7,431 3% ❑ Higher non-interest reven
Slide 31: Summary Performance of Business and Commercial Clients (BCC)
SUMMARY PERFORMANCE OF BUSINESS AND COMMERCIAL CLIENTS (BCC) KEY TAKEOUTS KES millions 2021 2020 % change Net interest income 3,756 3,380 11% ❑ Growth in net interest income as a result of growth in customer loans and improved margins. Non-interest revenue 1,632 1,719 (5%) ❑ Decrease in non-interest
Slide 32: Summary Performance of Consumer and High Networth (CHNW)
SUMMARY PERFORMANCE OF CONSUMER AND HIGH NETWORTH (CHNW) KEY TAKEOUTS KES millions 2021 2020 % change Net interest income 4,075 3,414 19 ❑ Growth in interest income as a result of margin 1,348 1,292 4 improvement and growth in customer loans and Non-interest revenue deposits. Total Income 5,423 4,70
Slide 33: Summary Performance of Stanbic Bancassurance Intermediary Limited
SUMMARY PERFORMANCE OF STANBIC BANCASSURANCE INTERMEDIARY LIMITED KEY TAKEOUTS KES millions 2021 2020 % change This performance reflects: Net interest income 8 9 (13%) ❑ Increased revenue from embedded products. ❑ Improved uptake on standalone insurance products as businesses begin to stabilize from
Slide 34: Summary Performance of SBG Securities
SUMMARY PERFORMANCE OF SBG SECURITIES KEY TAKEOUTS KES millions 2021 2020 % change ❑ SBG Securities posted total revenue of KES 204m for the year ending 31st December Brokerage commission 2021, indicating a 22% year-on-year decline. 136 189 (28) This revenue performance reflects: Other revenue ❑ A d
Slide 35: Key Takeaways Summary
KEY TAKEAWAYS SUMMARY ❑ Strong rebound in 2021. ❑ Better asset quality. ❑ Increased shareholder return. ❑ Optimised balance sheet. ❑ Operational efficiencies from ❑ Sustainable community ❑ Focus on employee safety and digital transformation. engagement. productivity.
Slide 36: Thank You
Stanbic ITCANBE.