Zenith Bank Plc · NSENG:ZENITHBANK
Zenith Bank — Q1 2013 Earnings Presentation
30 slides from Zenith Bank's earnings presentation, May 2013
Slide 1: 3-Month Group Results: Presentation to Investors & Analysts
3-Month Group Results Presentation to Investors & Analysts Click to edit Master title style IFRS Compliant Results March 2013 Click to edit Master subtitle style people | technology | service ZENITH BANK PLC people | technology | service
Slide 2: Disclaimer
Disclaimer This presentation is based on the consolidated financial statements of Zenith Bank Plc, a company incorporated in Nigeria on 30 May 1990, and its subsidiaries (hereinafter collectively referred to as "the Group"). The financial statements are prepared in accordance with the International
Slide 3: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 6 Results - Group Speaker: Executive Director/Chief Financial Officer Udom Emmanuel Slides 8- 16 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter
Slide 4: The Nigerian Economy
The Nigerian Economy … GDP Growth: Foreign Reserves: Key The GDP grew at the rate of 6.99% in Q4 2012, down Nigeria's foreign reserves have been on a constant increase Themeby 77 bps from 7.76% recorded in the corresponding over the last one year quarter of the previous fiscal year. The figure stood
Slide 5: Pertinent Development in the Banking Industry
Pertinent Development in the Banking Industry Description Effect on Zenith Bank Tax Exemption on investment in Government •Zenith bank is experiencing a significant reduction Securities in tax charge due to huge investments in Effective 2012 and for the next 10 years, income government securities. e
Slide 6: Our Investment Proposition
Our Investment Proposition Strong earnings capacity and growth, Solid and liquid capital base, strengthened ERM practices, Good returns on investments and excellent customer services Key Listing on London Exchange: Zenith Bank has listed a non-capital raising GDR on the London Stock Exchange on Them
Slide 7: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 6 Results - Group Speaker: Executive Director/Chief Financial Officer Udom Emmanuel Slides 8 - 16 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter
Slide 8: Financial Highlights
Financial Highlights Key On Course for an Impressive Performance in 2013. Theme Gross Earnings: N86.98bn +20.21% YoY Net Interest Income: N45.61bn +19.22% YoY Net Interest Margin: 8.77% +4.96% YoY P&L PBT: N28.88bn +25.48% YoY PAT: N23.41bn +21.75% YoY Customer Deposit: N1.99tn +3.39% (YTD) Balance
Slide 9: Profit & Loss Statement
Profit & Loss Statement Group Group (N’m) 3 mths to 3 mths to YOY Mar-13 Mar-12 Change Gross Income 86,977 72,352 20.21% Continuing Operations: Interest Income 65,534 52,826 24.06% Interest Expense -19,924 -14,568 36.77% Net Interest Income 45,610 38,258 19.22% Impairment Charge for Credit Losses -1
Slide 10: Strengthening earnings and profitability...
Strengthening earnings and profitability... Comments Consistently high Net Interest Margin 10% 8.91% 8.77% 8.72% Improved Net Interest Margin (NIM) on the back of 8.34% 8.19% efficient balance sheet management (optimal resource 8% allocation and assets pricing). 6% Improved Cost to Income Ratio driv
Slide 11: Revenue Base ...Sustained Diversification
Revenue Base …Sustained Diversification Q1 2013 Q1 2012 Interbank Interbank Placements Interest Income Placements 2.1% PBT 1.1% T-Bills & Inv. Securities 36.7% T-Bills & N'million Q1 2013 Q1 2012 YoY Inv. Interbank Placements 1,356 582 133% Securities T-Bills & Inv. Securities 24,083 18,382 31% 34.8
Slide 12: Continuous efforts in cost-reduction strategies
Continuous efforts in cost-reduction strategies ….. Q1 2013 Q1 2012 Interest Expenses Borrowed Current Borrowed Current funds accounts funds accounts N'million Q1 2013 Q1 2012 YoY Inter-bank 1.3% 2.2% Savings Inter-bank 0.8% 5.9% Current accounts 1,174 316 271% takings accounts takings Savings Savin
Slide 13: Balance Sheet - Assets
Balance Sheet- Assets Group Group Ytd Group (N'm) Mar-13 Dec-12 Change Mar-12 Cash and balances with central banks 317,003 332,515 -4.67% 173,294 Treasury bills 727,990 669,164 8.79% 534,523 Due from other banks 205,751 182,020 13.04% 274,473 Loans and advances 1,099,327 989,814 11.06% 909,466 Inves
Slide 14: Balance Sheet - Liabilities & Equity
Balance Sheet- Liabilities & Equity Group Group YTD Group (N'm) Mar-13 Dec-12 Change Mar-12 Customers deposits 1,994,650 1,929,244 3.39% 1,670,856 Current income tax 11,152 6,577 69.56% 10,015 Deferred income tax liabilities 5,584 5,584 0.00% 5,963 Other liabilities 175,509 117,355 49.55% 164,313 On
Slide 15: Sustained assets & liabilities match
Sustained assets & liabilities match.. 1,200 Loans Growth Loans & Advances Q1 2013 1,125.1 Advances under On-lending finance lease Facilities 1.6% 1,014.5 998.5 993.1 5.3% 1,000 937.0 N'bn Overdrafts 28.6% 800 Term Loans 600 64.6% Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Customer Deposits Deposits Mix Q1
Slide 16: Continued market dominance through strong liquid asset base and funding mix
Continued market dominance through strong liquid asset base and funding mix… Q1 2013 Q1 2012 Current Treasury bills 58.2% Current balances Liquid Assets balances with banks within with banks Nig. within Nig. 0.7% 0.7% Treasury bills N'million Q1 2013 Q1 2012 YoY Current 54.4% Cash 32,915 25,630 28%
Slide 17: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 6 Results - Group Speaker: Executive Director/Chief Financial Officer Udom Emmanuel Slides 8 - 16 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter
Slide 18: P&L – By Geography: Improved earnings across geographies
P&L – By Geography 3 Months Ended Mar 2013 (N’m) Nigeria Rest of Africa Europe Eliminations Consolidated Total Revenue 82,906 3,633 1,672 -1,234 86,977 Total Expense -55,921 -2,337 -1,076 1,234 -58,100 Profit Before Tax 26,985 1,296 596 - 28,877 Tax -5,073 -250 -146 - -5,469 Profit After Tax 21,912
Slide 19: P&L – By Geography
P&L – By Geography Gross Revenue by Geography – Q1 2013 Gross Revenue by Geography – Q1 2012 Nigeria Nigeria 94.37% 93.99% Europe 1.73% Rest of Europe Africa 1.90% Rest of 3.89% Africa 4.12% Our Nigerian business continues to be the main driver of profitability … providing Our Nigerian business cont
Slide 20: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 6 Results - Group Speaker: Executive Director/Chief Financial Officer Udom Emmanuel Slides 8 - 16 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter
Slide 21: Healthy Risk Assets Portfolio
Healthy Risk Assets Portfolio… NPL Coverage Ratio Our Risk Management Strategy 100% 90.1% 80.1% 78.5% 77.4% 77.1% 80% The group adopts a complete and integrated approach to risk 60% management that is driven from the Board level to the operational activities of the bank. Ratio 40% 20% Risk managemen
Slide 22: Focused risk management via portfolio diversification
Focused risk management via portfolio diversification Loans by Sector – Q 1 2013 Finance and Insurance Power Education Flour Mills Cement 1.98% 0.58% 0.40% 4.34% Manufacturing Food and Agro-processing Agriculture 1.91% 3.53% 6.09% Beverages and Tobbaco Government 0.20% 9.53% Other Public utilities O
Slide 23: NPL by Segment
NPL by Segment Others 23.71% Oil & Gas 21.96% Admin & Support Service Activities 0.02% Power 0.94% Transportation 1.35% Manufacturing 1.98% General Commerce Capital Market 5.49% 20.66% Consumer Credit 7.17% Construction Real Estate Activities 7.48% 9.24% Comments • We continue to develop our Risk Ma
Slide 24: Strong Capitalization and Liquidity
Strong Capitalization and Liquidity Liquidity and Capital Adequacy 70% 64% 61% 57% 59% 60% 50% Capital and liquidity 40% 34% 36% 29% 31% ratios for the Bank – well 30% above industry % 20% 10% requirements. 0% -10% 2009 2010 2011 2012 Liquidity Capital Adequacy Capital Mix 100% 98.20% 99.53% 99.66%
Slide 25: Agenda
Agenda Overview & Operating Environment Speaker: Managing Director/Chief Executive Officer Godwin Emefiele Slides 4 - 6 Results - Group Speaker: Executive Director/Chief Financial Officer Udom Emmanuel Slides 8 - 16 Results – By Segment & Geography Speaker: Executive Director/Corporate Banking Peter
Slide 26: Strategies for driving our vision
Strategies for driving our vision 1 The Bank focuses on cost 2 The Bank accomplishes this Compete effective deposits from the strategy by: aggressively for retail end of the market to lend Consistent focus and market share, but focus on high to the corporate end with Delivering superior investment i
Slide 27: Our Key Growth Target Sectors
Our Key Growth Target Sectors Driving profitability with our competitive advantages Sector Identified Growth Competitive Advantage Sectors Business line & Geography Infrastructure Strong capital and liquidity Manufacturing Strong brand Oil and Gas (Upstream & Strong international rating Downstream)
Slide 28: Outlook and Prospects for FY2013
Outlook and Prospects for FY2013 Mobile Banking: In a bid to encourage and promote person- Agriculture: The Federal government’s resolve to boost the agricultural sector in the country would no doubt create quite to-person payments and leverage on mobile phone channels as a number of opportunities i
Slide 29: Outlook and Prospects for FY2013
Outlook and Prospects for FY2013 Representative Office: We have officially opened a Deposit Base: Our drive for low cost and appropriately representative office in Beijing, the capital city of the Peoples mixed deposit base to fund our credit and money market Republic of China. The group is certain
Slide 30: Q&A Thank you
Q&A Thank you 32