Stanbic Holdings Plc · NSEKE:SBIC

Stanbic — H1 2023 Earnings Presentation

28 slides from Stanbic's earnings presentation, Jun 30, 2023

  1. Slide 1: Stanbic Holdings Plc Financial Results Presentation

    STANBIC HOLDINGS PLC Financial Results Presentation For the six months period ended 30th June 2023 1 | STANBIC 1H23 FINANCIAL RESULTS PRESENTATION

  2. Slide 2: Table of Contents

    Table of Contents Operating Delivering our Sustainable Environment strategy Returns 22 | STANBIC 1H23 FINANCIAL RESULTS PRESENTATION S TAN B I C 1H23 FINANCIAL RESULTS PRESENTATION

  3. Slide 3: Operating Environment

    1. Operating Environment K ES INTERIM DIVIDEND PER 1.15 SHARE J U N E 20 22: N i l Pat rick Mweheire Chief Executive, Stanbic Holdings Plc 4 33 STANBIC 1H23FINANCIAL RESULTS PRESENTATION | STANBIC 1H23 FINANCIAL RESULTS PRESENTATION STANBIC 1H23 FINANCIAL RESULTS PRESENTATION

  4. Slide 4: Operating Environment – Global and Regional Overview

    OPERATING ENVIRONMENT – GLOBAL AND REGIONAL OVERVIEW /4/ Kenya Tanzania Global landscape 14.0% 8.0% 7.1% ▪ Geopolitical Matters: 12.0% 11.7% 7.0% 10.0% 10.5% o Persistent Russia-Ukraine conflict 6.0% 10.0% 5.0% 5.0% o China-Taiwan conflict - Elevated hostilities 5.0% 4.7% 8.0% 7.9% 7.9% 4.4% o Sudan

  5. Slide 5: Operating Environment - Kenya Overview

    /5/ OPERATING ENVIRONMENT - KENYA OVERVIEW GDP Growth RISING INTEREST RATES GDP 7.50% 5.70% 5.0% 5.10% 4.80% ▪ CBR hikes: Central Bank rate (CBR) raised ▪ The Kenyan economy grew by 5.3% in by 100bps. Cumulative increase over the Q1 2023 compared to 6.2 % in Q1 2022. last one year of 300bps The grow

  6. Slide 6: Delivering Our Strategy

    2. Delivering Our Strategy RETURN ON EQUITY 20.5% U P 472 bps Dr. JoshuaOigara Chief Executive, Stanbic B a n k 66 STANBIC 1H23 FINANCIAL RESULTS PRESENTATION | STANBIC 1H23 FINANCIAL RESULTS PRESENTATION STANBIC 1H23 FINANCIALRESULTS PRESENTATION 7

  7. Slide 7: 2023 Is the Final Year of Our 3 Year Strategy

    2023 IS THE FINAL YEAR OF OUR 3 YEAR STRATEGY Delivering 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 v

  8. Slide 8: Delivering Our Strategy – Transform Client Experience

    Client focus DELIVERING OUR STARTEGY – TRANSFORM CLIENT EXPERIENCE STRENGTHENING THE CORE ACCELERATED ACCESS TO BANKING OUTCOMES Growth in customer base • 12% growth in total customer base year on year SMEs Chama App • 9% growth in primary customer base year on year - • 31,518 users • Loans issued v

  9. Slide 9: Delivering Our Strategy – Executing with Excellence

    DELIVERING OUR STARTEGY – EXECUTING WITH EXCELLENCE Employee Operational EMPLOYEE ENGAGEMENT OPERATIONAL EXCELLENCE MANAGING RISK Risk & Engagement Excellence Conduct Diversity & inclusion ▪ Geopolitical tensions Digital Lending (inc. Mjeki) ▪ Male : Female – 52:48 (Global and local) • Instant loans

  10. Slide 10: Delivering Our Strategy - Driving Sustainable Growth

    SEE Impact DELIVERING OUR STRATEGY - DRIVING SUSTAINABLE GROWTH Financial Inclusion & Enterprise Development Education Climate change and Sustainable finance Gatina primary feeding program • Blue Economy Programme rolled out ▪ KES 43m in grants and catalytic funding o >1500 needy children fed daily

  11. Slide 11: Delivering Sustainable Returns

    3. Delivering Sustainable Returns KES. 7.1B PROFIT AFTER TAX UP 4 7 % Dennis M u s a u Chief Financial and Value Officer 11 11 | STANBIC 1H23 FINANCIAL RESULTS PRESENTATION STANBIC 1H23FINANCIAL RESULTS PRESENTATION

  12. Slide 12: Income Statement Highlights

    INCOME STATEMENT HIGHLIGHTS KES Revenue Net interest margin Cost to income 2022: KES 15.2b 6.2% 2022: 4.98% 41.6% 2022: 48.2% 21.0b 38% 122 bps 663bps KES Profit after tax Return on Equity KES Earnings per share 2022: KES 4.8b 20.5% 2022: 15.8% 2022: KES 12.13 7.1b 47% 472 bps 17.84 47% Credit loss r

  13. Slide 13: Strong Growth Momentum in Our Performance

    STRONG GROWTH MOMENTUM IN OUR PERFORMANCE Key highlights The Group (Kenya Bank, South Sudan Branch, SBG Securities June 2023 June 2022 and Stanbic Insurance Agency Limited) reported a profit after KES m KES m % Change tax of KES 7.1b; Net interest income 12,051 8,343 44% ▪ Improvement in Net Interest

  14. Slide 14: Steady Growth in All Income Lines

    STEADY GROWTH IN ALL INCOME LINES KES Millions KES Millions 18,000 16,797 10,000 16,000 9,000 14,000 8,000 12,051 7,000 11,494 12,000 6,000 5,940 10,000 Interest income 8,343 5,000 Trading and other income 8,000 Interest expense 4,525 4,000 Net fees and commissions 6,000 Net interest income 4,746 3,

  15. Slide 15: Operating Expenses and Credit Impairment

    OPERATING EXPENSES AND CREDIT IMPAIRMENT KES Millions KES Millions 10,000 50.0% 3,000 2,658 9,000 2,496 48.2% 2,500 48.0% 8,000 7,000 2,000 46.0% 1,609 4,713 6,000 1,500 3,662 Other operating expenses 1,261 5,000 44.0% Staff costs 1,000 4,000 41.6% 42.0% CTI 3,000 500 2,000 4,005 3,673 40.0% - 1,000

  16. Slide 16: Balance Sheet Highlights

    BALANCE SHEET HIGHLIGHTS KES Total assets 2022: KES 342b KES Customer loans 2022: KES 217b KES Customer deposits 2022: KES 236b 384b 13% 244b 12% 259b 10% NPL ratio Liquidity ratio *(Bank) Total capital ratio *(Bank) 9.23% 2022:10.36% 113bps 35.8% Statutory minimum: 20% 17.4% Statutory minimum:14.5%

  17. Slide 17: Growth in Key Performance Drivers

    GROWTH IN KEY PERFORMANCE DRIVERS KES millions 2023 2022 Change % Assets Financial investments 54,726 52,570 4% Loans and advances to banks Key highlights 37,353 26,943 39% Loans and advances to customers 244,034 217,097 12% ▪ Strong growth in customer loans with a 12% YoY Other assets 48,167 44,969

  18. Slide 18: Double Digit Loan Book Growth

    DOUBLE DIGIT LOAN BOOK GROWTH Net Loans and advances to customers Loans and advances by product June 2022 June 2023 June 2023 KES millions 250,000 Home loans 13% 12% 244,034 17% 245,000 15% Overdrafts 4% 66% 4% 240,000 Vehicle asset 69% finance(VAF) 235,000 Term lending 230,000 225,000 220,000 217,0

  19. Slide 19: Asset Quality: Sustained Improvement in Loan Book Quality

    ASSET QUALITY: SUSTAINED IMPROVEMENT IN LOAN BOOK QUALITY GROSS NPLs ( LESS INETEREST IN SUSPENSE ) Trend for loan book quality 10.1% 11.1% 11.6% 9.2% 8.3% 7.2% 7.3% 10.5% 16,000 11,000 19,479 18,972 81.6% 81.7% 81.1% 80.2% 6,000 1,000 Jun-22 Jun-23 Sep-22 Dec-22 Mar-23 Jun-23 Net NPLs ( excl. IIS)

  20. Slide 20: Deposits

    DEPOSITS Customer Deposits Customer Deposits by products KES millions June 2023 300,000 0.4% 256,682 258,559 6% 5% 250,000 232,946 235,649 LC acceptances 27% 62% Current accounts 201,551 200,000 Savings accounts Call deposits 150,000 Fixed deposits 100,000 50,000 June 2022 - 1% Jun-19 Jun-20 Jun-21

  21. Slide 21: Liquidity and Capital Remain Solid to Support Growth

    LIQUIDITY AND CAPITAL REMAIN SOLID TO SUPPORT GROWTH Liquidity Ratio (Bank only) Capital Adequacey Ratio (Bank only) RWA - Risk weighted Assets 40.0% 35.8% 35.9% 20.0% 35.0% 18.0% 17.4% 30.0% 16.2% 16.0% 14.5% 13.9% 14.0% 14.5% 25.0% 14.0% 20.0% 12.0% 10.5% 20% 20% 10.5% 10.0% 15.0% 8.0% 10.0% 6.0%

  22. Slide 22: Subsidiary and Branch Performance

    Subsidiary and branch performance Dennis M u s a u Chief Financial and Value Officer 23 22 | STANBIC 1H23 FINANCIAL RESULTS PRESENTATION STANBIC 1H23 FINANCIAL RESULTS PRESENTATION

  23. Slide 23: Subsidiaries and Branch Performance

    SUBSIDIARIES AND BRANCH PERFORMANCE Stanbic Holdings Plc PAT: 7.1b 47% up Stanbic Kenya Stanbic South Sudan Stanbic Bancassurance SBG Securities Intermediary Ltd June 2023 YoY Var June 2023 YoY Var June 2023 YoY Var June 2023 YoY Var PAT KES 56m 6% down PAT KES 53m 31% up PAT KES 154m >100% up PAT K

  24. Slide 24: Summary Performance of Stanbic Bancassurance Intermediary Limited

    SUMMARY PERFORMANCE OF STANBIC BANCASSURANCE INTERMEDIARY LIMITED Key Takeouts June 2023 June 2022 Change KES m KES m % This performance reflects: Net interest income 4 3 28% ▪ Increase in volume of business placed with insurance companies Fees and commission 144 142 1% ▪ Increased uptake on standalo

  25. Slide 25: Summary Performance of SBG Securities

    SUMMARY PERFORMANCE OF SBG SECURITIES Key Takeouts June 2023 June 2022 Change ▪ This performance reflects: KES m KES m % • Significant growth in revenue year on Brokerage commission year, mainly driven by advisory revenue 52.2 57.5 (9%) Other revenue • A 9% decline in brokerage revenue, driven 234.2

  26. Slide 26: Key Take Aways

    KEY TAKE AWAYS Client Employee Risk and Operation and Financial See Focus Engagement Conduct Excellence outcome Impact • Strong performance across all • Operational efficiencies from digital revenue lines transformation • Increased shareholder return • Navigated market challenges to deliver • Focused

  27. Slide 27: H2 2023 Focus Areas

    H2 2023 FOCUS AREAS 1 2 3 Risk management: Efficiency: Leveraging digital Growth & scale: Driven by Proactive and data driven risk investments for efficient client To be a leading financial focus on client needs analysis and management service services organisation in Kenya and South Sudan, delivering ex

  28. Slide 28: Thank You

    THANK YOU 28 | STANBIC 1H23 FINANCIAL RESULTS PRESENTATION

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