First Holdco Plc · NSENG:FIRSTHOLDCO
First Holdco — FBN Holdings — FY2021 & Q1 2022 Earnings Presentation
27 slides from First Holdco's earnings presentation, Jun 3, 2022
Slide 1: Full Year 2021 & Q1 2022 Results Presentation
Full Year 2021 & Q1 2022 Results Presentation 3 June 2022
Slide 2: Disclaimer
Disclaimer This presentation is based on FBN Holdings Plc’s (‘FBNH’ or ‘FBNHoldings’ or the ‘Group’) audited financial statements for the year ended 31 December 2021 and unaudited financial statements for the period ended 31 March 2022. The Group’s Financial statements represent FBN Holdings Plc and
Slide 3: Key Highlights
FBNHoldings BY Ly LG o-ses ty j ray ee ere oa a aT ‘URE FOCUSE Key Highlights
Slide 4: Key highlights – FY 2021
Key Highlights Key highlights – FY 2021 • Highest PBT performance in the history of the institution • Profit before tax of ₦166.7 billion (up 99.1% y-o-y) • 96.1% increase y-o-y in non-interest revenue • Balance sheet repair largely completed • Further y-o-y decline in NPL ratio to 6.1% (FY20: 7.7%)
Slide 5: Key highlights – Q1 2022
Key Highlights Key highlights – Q1 2022 • Demonstrated strong sustainable performance • Profit before tax of ₦36.5 billion (up 93.2% y-o-y) • 37.9% increase y-o-y in net-interest revenue • 23.0% increase y-o-y in non-interest revenue • Strongest PPOP1 over Impairment charge in years • Sustained impr
Slide 6: Highly experienced and independent Board to support strategic execution
Key Highlights Highly experienced and independent Board to support strategic execution • Well diversified and independent board expertise to support management in its strategic execution • Experience across Banking, Alhaji Ahmad Abdullahi Group Chairman Nnamdi Okonkwo Group Managing Director strateg
Slide 7: 2022 Strategic priorities – focused on driving sustainable growth
Key Highlights 2022 Strategic priorities – focused on driving sustainable growth Differentiated Capabilities Collaboration & Partnership • Expand digital & retail product offerings through • Strengthen group collaboration integration and innovation • Strategic partnership with financial • Deepen tra
Slide 8: Financial Review
FBNHoldings BY Ly LG o-ses ty j ray ee ere oa a aT ‘URE FOCUSE Financial Review
Slide 9: FY 2021: Stellar performance
Financial Review FY 2021: Stellar performance Gross Earnings ₦’bn* Net-Interest Income ₦’bn Non-Interest Revenue ₦’bn* Operating Income ₦’bn Impairment Charge ₦’bn* +28.2% -9.3% +96.1% +35.5% +48.3% 757.3 251.6 364.6 91.7 228.2 592.8 590.7 437.6 61.8 185.9 FY 20 FY21 FY 20 FY 21 FY 20 FY 21 FY 20 FY
Slide 10: Q1 2022: Building on positive momentum
Financial Review Q1 2022: Building on positive momentum Gross Earnings ₦’bn Net-Interest Income ₦’bn Non-Interest Income ₦’bn Operating Income ₦’bn Impairment Charge ₦’bn +32.2% +37.9% +23.0% +30.5% -33.6% 180.5 64.7 137.5 13.2 136.6 72.8 52.6 105.4 52.8 8.8 Q1 21 Q1 22 Q1 21 Q1 22 Q1 21 Q1 22 Q1 21
Slide 11: Improved profitability and strengthened balance sheet
Financial Review Improved profitability and strengthened balance sheet Post Tax ROaE (%) Net Interest Margin (%) Cost of Funds (%) NPL Ratio % NPL Coverage (%) 18.4 6.1 2.3 68.9 2.1 2.0 7.7 62.2 14.5 4.6 5.1 12.6 4.5 1.6 6.1 6.0 48.3 8.2 FY 20 FY 21 Q1 21 Q1 22 FY 20 FY 21 Q1 21 Q1 22 FY 20 FY 21 Q1
Slide 12: Optimising opportunities to grow overall revenue
Financial Review Optimising opportunities to grow overall revenue • Gross earnings increased 28.2% y-o-y to ₦757.3 FY 21 Gross Earnings ₦’bn FY 21 Gross Earnings Mix FY 21 Interest Income Mix billion (Dec 2020: ₦590.7 billion); Similarly, Q122 Gross earnings increased 32.2% y-o-y 20.6% 30.2% 31.0% •
Slide 13: Expanding non-interest income through value added services
Financial Review Expanding non-interest income through value added services • Non-interest income increased 96.1% y-o-y to FY 21 Non-interest Income Breakdown Net (₦’bn) FY 21 Fees & Commission Breakdown Gross (₦’bn) ₦364.6 billion +96.1% +24.2% • Sustained underlying growth non-interest income incr
Slide 14: Sustained momentum in e-banking services
Sustained momentum in e-banking services Electronic Banking Revenue ₦’bn Volume (million) Value ₦’bn 56.4 CAGR 112% CAGR 167% 4,451 48.7 1,189 48.0 1,024 3,677 USSD 26.7% 800 2,566 580 1,968 312 883 23.4% 23.7% 28 33 34.0 15.9% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 15.1% 24.2%
Slide 15: Maintaining focus on efficiency despite inflationary and currency pressure
Financial Review Maintaining focus on efficiency despite inflationary and currency pressure • Opex increased by 14.2% y-o-y to ₦334.2 billion FY 21 OPEX Drivers (₦’bn) (Dec 2020: ₦292.5 billion ); below the inflation rate of 15.6% in December 2021; increased further in Q122 3.2 FY 21 128.8 35.3 28.3
Slide 16: Solid market access and robust funding base
Financial Review Solid market access and robust funding base • Customer deposits increased by 19.5% y-o-y to Customer Deposits Mix (₦’bn) ₦5.8 trillion (Dec 2020: ₦4.9 trillion) • Liquidity position further supported by increased Q1 22 1854 2,126 1,167 978 15 6,139 agent banking and e-banking growth
Slide 17: Maintaining a well diversified loan book
Financial Review Maintaining a well diversified loan book FirstBank Nigeria Loan Currency Mix FirstBank Nigeria Gross Loan per Sector Q1 22 18.1% 16.6% 10.2% 6.6% 9.8% 6.4% 3.8% 4.3% 24.2% ₦2.8trn 50.4% 47.3% 54.2% 52.1% 54.3% 55.7% ₦2.6trn FY 21 18.2% 15.8% 10.3% 7.0% 9.5% 5.9% 4.1% 4.4% 24.8% 49.6
Slide 18: Asset quality improvements supporting the drive to enhance balance sheet strength
Financial Review Asset quality improvements supporting the drive to enhance balance sheet strength FirstBank Nigeria NPL per Sector NPL Ratio General Commerce 7.4% Q1 22 2.7% Agriculture 6.5% 21.1% 4.2% 4.0% 21.0% Real Estate 4.3% 26.0% FY 21 22.8% General 5.0% 5.7% Oil & Gas services 5.8% 6.0% Oil
Slide 19: Strengthened balance sheet and a solid platform for sustainable capital accretion
Financial Review Strengthened balance sheet and a solid platform for sustainable capital accretion FirstBank Nigeria CAR (%) • Q122 CAR1 at 16.6% including Q122 profit (16.04% exc. profit) 17.0 17.4 16.6* • Businesses across group remain sufficiently capitalized Reg. threshold: • Focused on organic
Slide 20: Ongoing focus on ESG initiatives
Financial Review Ongoing focus on ESG initiatives Environmental Impact C02 76% Processed 365 y-o-y growth million Carbon transition – 20% in financial Waste and pollution – reduction in oil and gas inclusion agents to transactions worth advanced 21.6bn to support upstream loans urban mass transit an
Slide 21: Appendix
FBNHoldings BY Ly LG o-ses ty j robe wy ar enaren oa a aT ‘URE FOCUSE Appendix
Slide 22: Commercial Banking, Merchant Banking and Asset Management Group
Appendix Commercial Banking, Merchant Banking and Asset Management Group Commercial Banking Group Merchant Banking and Asset Management Group (FBNQuest) Key financial highlights & performance ratios Key financial highlights & performance ratios Income statement Statement of Financial Position Income
Slide 23: Benign improvement in operating environment
Appendix Benign improvement in operating environment Economic recovery Increase in oil price supports reserves 150.0 2.5 18.17 17.75 15.75 16.63 15.63 15.92 1.6 2.0 1.6 13.71 1.8 1.5 12.56 100.0 1.7 1.6 1.7 1.5 5.00 4.03 3.98 1.5 3.11 0.11 0.51 40.5 39.5 1.0 50.0 36.2 35.7 35.4 34.8 33.3 36.8 0.5 27
Slide 24: Key regulatory and policy interventions
Appendix Key regulatory and policy interventions CBN issued a regulatory CBN issued a circular on the CBN issued approval in principle for framework for non-bank implementation of Basel III by payment system banking license to CBN expanded the automation of merchant acquiring to facilitate a Deposit
Slide 25: Q1 2022 Non-financial highlights
Appendix Q1 2022 Non-financial highlights Employees 5,155,121 POS 18,108 735 First Mobile 13,619,712 8,148 *8,220 *4,998,382 *735 *13,306,832 *17, 819 Automated AT M c a rd s 36.9 11.9 Teller Machines 3,153 61% 39% m i l l i o n Male Female Customers million *61% Male/39% Female *36,000,000 *11,700,
Slide 26: Definitions
Appendix Definitions ₋ Cost-to-income ratio computed as operating expenses divided by operating income ₋ Cost of risk computed as annualized credit impairment charges divided by the average opening and closing gross loans balances ₋ Net-interest margin computed as annualised net interest income divi
Slide 27: Contact details
Appendix Contact details Head, Investor Relations Tolulope Oluwole Tolulope.O.Oluwole@fbnholdings.com +234 (1) 905 2720 Investor Relations Team investor.relations@fbnholdings.com : +234 (1) 905 1086; 1147 27
FBN Holdings — FY2021 & Q1 2022 Earnings Presentation on 6ix