Slide 1: Transforming into the Financial Institution of First Choice
Transforming into the Financial Institution of First Choice Focused on Delivering Sustainable Long Term Returns Half Year Ended June 2013 Investor & Analyst Presentation © FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013
Slide 2: Agenda
Overview & Operating Financial Review Environment Agenda Business Groups Strategy Appendix © FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013
Slide 3: Disclaimer
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Disclaimer Overview Financial Review Business Groups Strategy Summary/Outlook This presentation is based on FBN Holdings Plc’s (‘FBNH’ or the ‘Group’ or ‘HoldCo’) unaudited IFRS results for half year ended 30 Ju
Slide 4: Overview & Operating Environment
Overview & Operating Environment © FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013 | 28 Aug 2013
Slide 5: Holding company structure provides platform to tap growth potential
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Holding company structure provides platform to tap growth potential across our portfolio of businesses Overview Overview Financial Review Business Groups Strategy Summary/Outlook FBN Holdings Plc Investment Bank
Slide 6: Rapidly changing regulatory environment with relatively stable macroeconomic fundamentals
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Rapidly changing regulatory environment with relatively stable macroeconomic fundamentals Overview Overview Financial Review Business Groups Strategy Summary/Outlook Macro Factors Effect on FBN Holdings • Global
Slide 7: FBN Holdings remains FIRST among Nigeria's financial institutions
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 FBN Holdings remains FIRST among Nigeria’s financial institutions Overview Overview Financial Review Business Groups Strategy Summary/Outlook FIRST in Nigeria by total assets, gross loans and total deposits, wit
Slide 8: Resilient financial performance in the face of rising headwinds
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Resilient financial performance in the face of rising headwinds Overview Overview Financial Review Business Groups Strategy Summary/Outlook Cost to income ratio Net revenue (Nbn) 26% 64.4% 298.3 7.2% 77.8% 237.0
Slide 9: Outlook
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Outlook Overview Financial Review Business Groups Strategy Summary/outlook Summary/Outlook • Continue to push top line growth across our Group with an emphasis on: - customer acquisition (reflective of the very
Slide 10: Clear 2013 financial targets
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Clear 2013 financial targets Overview Financial Review Business Groups Strategy Summary/outlook Summary/Outlook 2012 Results H1 2013 Results 2013 Targets Deposit growth 23% 6.4% >15% Loan growth 23% -1.2% ≥10% N
Slide 11: Financial Review
Financial Review © FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013 | 28 Aug 2013
Slide 12: H1 2013: Overview of income statement
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 H1 2013: Overview of income statement Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook • Gross earnings grew 8% y-o-y to N194.9bn, largely from interest income Snapshot of Inco
Slide 13: H1 2013: Overview statement of financial position
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 H1 2013: Overview statement of financial position Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Snapshot: Statement of financial position Balance sheet structure - June 2013
Slide 14: High quality deposit funding base sustained with expansion from retail
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 High quality deposit funding base sustained with expansion in contribution from retail Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Deposits by type Nbn Deposits by SBU Nbn
Slide 15: Capital and liquidity levels are adequate to sustain growth plans
© FBN Holdings 2013 | Results Presentation for full year ended 30 June 2013 | 28 Aug 2013 Capital and liquidity levels are adequate to sustain growth plans Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Components of capital (Nbn) Evolution of capital and liquidi
Slide 16: Evolution of H1 2013 profit after tax
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Evolution of H1 2013 profit after tax (Nbn) Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook 9.4% 31.2% 2.4% 3.2% 3.1% 0.4% vs. H1 2012 H1 H1 2013 2012 RoAE 24.9% 22.1% [107.0]
Slide 17: Increased activities from shorter tenored facilities supports gross earnings
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Increased activities from shorter tenored facilities supports gross earnings Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Gross earnings (Nbn) Gross earnings split by busin
Slide 18: Net interest income increase driven by higher yields
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013 | 28 Aug 2013 Net interest income increase driven by higher yields Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Net interest margin (NIM) Yields and Cost of funds Deposit cost Cost of f
Slide 19: Continued to contain operating expenses with sustained improvement in efficiency
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013 | 28 Aug 2013 Continued to contain operating expenses with sustained improvement in efficiency ratios Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook • Operating expenses rose by 3.1% y-o-
Slide 20: Increasing efficiency and flexibility in earning assets
© FBN Holdings 2013 | Results Presentation for full year ended 30 June 2013 | 28 Aug 2013 Increasing efficiency and flexibility in earning assets Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Earning assets mix (Nbn) FBN Holdings gross loans (Nbn) 2 Interbank Tr
Slide 21: First Bank of Nigeria (loan book dynamics)
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013 | 28 Aug 2013 First Bank of Nigeria (loan book dynamics) Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Breakdown of loans by SBU Loan Breakdown by Sectors Power and Energy 1% General 8%
Slide 22: FBN UK records positive performance
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013 | 28 Aug 2013 FBN UK records positive performance Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Selected financial summary (June 2013) Loan book by sector (June 2013) Government 3.2% Agr
Slide 23: Proactive portfolio management remains a priority
© FBN Holdings 2013 | Results Presentation for half year 30 June 2013 | 28 Aug 2013 Proactive portfolio management remains a priority Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Asset quality NPLs sector exposure H1 2013 (Bank only) NPL N’bn NPL coverage (incl
Slide 24: Ensuring early recognition of impaired assets
© FBN Holdings 2013 | Results Presentation for half year 30 June 2013 | 28 Aug 2013 …….ensuring early recognition of impaired assets Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Allowance for impairments Nbn (Bank only) Evolution of credit impairments Credit im
Slide 25: Performance Review - Business Groups
Performance Review - Business Groups Commercial Banking Investment Banking & Asset Management Insurance & Microfinance © FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013 | 28 Aug 2013
Slide 26: Commercial Banking - Overview
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Commercial Banking- Overview Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Half Year 2013: Gross earnings – (Nbn) • Gross earnings for first half of 2013 recorded a 2.8% incr
Slide 27: Investment Banking & Asset Management - Overview
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Investment Banking & Asset Management- Overview Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Half Year 2013: • Overall better performance vs. Q1 2013 and H1 2012, with reven
Slide 28: Insurance - FBN Life Assurance - Overview
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Insurance - FBN Life Assurance- Overview Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Half year 2013: Gross premium income – (Nmn) • FBN Life Assurance Limited, a joint vent
Slide 29: Insurance - FBN Insurance Brokers - Overview
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Insurance – FBN Insurance Brokers- Overview Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Half year 2013: Gross income – (Nmn) • Gross income increased by 4% when compared wi
Slide 30: Microfinance - Overview
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Microfinance- Overview Overview Financial Review Business Groups Business Groups Strategy Summary/Outlook Half Year 2013: Gross earnings – (Nmn) • FBN Microfinance (FBNM) recorded a PBT of N127mn (HY 2012: N160m
Slide 31: Strategy
Strategy © FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013 | 28 Aug 2013
Slide 32: Our business model is designed to create a stronger growth platform
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Our business model is designed to create a stronger growth platform for a multi-geography financial services group Overview Financial Review Business Groups Strategy Strategy Summary/Outlook How we deliver and …
Slide 33: Results driven by focused implementation along five strategic themes
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Our results are driven by focused implementation along five strategic themes Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Strategic Priority H1 2013 Performance Update Outlook over
Slide 34: Commercial Banking Group - Non-Financial Strategic Initiatives
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Commercial Banking Group – Non-Financial Strategic Initiatives Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Subsidiary H1 2013 Performance Update § Recorded increased patronage of
Slide 35: FirstBank continues to leverage its competitive advantage
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 FirstBank continues to leverage its competitive advantage even as the operating environment poses new challenges and opportunities to tap Overview Financial Review Business Groups Strategy Strategy Summary/Outlo
Slide 36: Over the next months, we will continue to drive profitability
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Over the next 6 months, we will continue to drive profitability notwithstanding the challenging operating environment Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Non-interest Bala
Slide 37: International Expansion Focused on Core Banking Business
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 International Expansion Focused on Core Banking Business Overview Financial Review Business Groups Strategy Strategy Summary/Outlook Global Footprint France United Arab Emirates Rep. offices explore business opp
Slide 38: Contact Details
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Contact Details Overview Financial Review Business Groups Strategy Summary/Outlook Head, Investor Relations Oluyemisi Lanre-Phillips Email: oluyemisi.lanre-phillips@firstbanknigeria.com Phone: +234 (1) 9052720 I
Slide 39: Appendix
Appendix © FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013 | 28 Aug 2013
Slide 40: Steady growth in risk assets with focus on improving portfolio quality
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Steady growth in risk assets with focus on improving overall portfolio quality Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Loans and advances by maturity (Bank only) Loans
Slide 41: Remedial action intensified to improve asset quality
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013| 28 Aug 2013 Remedial action intensified across the board to improve asset quality Overview Financial Review Financial Review Business Groups Strategy Summary/Outlook Sector NPL ratios (Bank only) 7.2% H1 13 Q1 13 % of gross
Slide 42: GDR Programme
© FBN Holdings 2013 | Results Presentation for half year ended 30 June 2013 | 28 Aug 2013 GDR Programme Overview Financial Review Business Groups Strategy Summary/Outlook First Bank of Nigeria has a Sponsored Regulation S Global Depositary Receipt (RegS GDR) program § Ticker symbol: 999112Z LI § CUS