Stanbic Ibtc Holdings Plc · NSENG:STANBIC
Stanbic Ibtc — FY2012 and Q1 2013 Earnings Presentation
57 slides from Stanbic Ibtc's earnings presentation, May 2013
Slide 1: Financial results presentation
Financial results presentation For the year ended 31 December 2012 and 3 months ended 31 March 2013
Slide 2: Contents
Contents • The operating environment • Financial analysis o FY 2012 results analysis o 1Q 2013 results analysis • Business unit analysis • Prospects and outlook • Q&A This presentation is based on the consolidated financial statements of Stanbic IBTC Holdings PLC and its subsidiaries. All financial
Slide 3: Operating environment
Operating environment Sola David-Borha Chief executive officer 3 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Slide 4: Operating environment
Operating environment Market was impacted by: Results reflect the following: • Sustained monetary policy tightening by the • Increased transactional volumes and central bank; activities, with positive impact on revenue; • Improved revenues from our capital market • Improved capital market performanc
Slide 5: Financial analysis
Financial analysis Ronald Pfende Chief financial officer 5 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Slide 6: FY 2012 results analysis
FY 2012 results analysis 6 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Slide 7: FY 12: Performance highlights
FY 12: Performance highlights • Gross earnings; up 45% to N91.9 billion (2011: N63.4 billion) • Net interest income; grew 21% to N33.6 billion (2011: N27.6 billion) Continued growth • Non - interest revenue; up 23% to N33.9 billion (2011: N27.6 billion) in revenues and profitability • Total income;
Slide 8: FY 12: Performance highlights
FY 12: Performance highlights • Net interest margin 4.96% (2011: 4.98%) • Cost-to-income ratio 72.4% (2011: 75.6%) • Pre tax return on average equity 14.4% (2011:12.2%) • After tax return on average equity 10.9% (2011: 6.8%) Selected returns • Pre-tax return on average assets 1.9% (2011: 2.1%) and r
Slide 9: FY 12: Summarised group income statement
FY 12: Summarised group income statement FY 2012 change FY 2011 Nmillion % Nmillion Interest income 57,818 63 35,428 Interest expense (24,264) >100 (7,786) Net interest income 33,554 21 27,642 Non interest revenue 33,856 23 27,605 Net fee & commission revenue 25,568 39 18,388 Trading revenue 8,091 (
Slide 10: FY12: Summarised group income statement
FY12: Summarised group income statement 2H 2012 change 1H 2012 Nmillion % Nmillion Interest income 29,822 7 27,996 Interest expense (13,498) 25 (10,766) Net interest income 16,324 (5) 17,230 Non interest revenue 20,038 23 13,818 Net fee & commission revenue 14,466 30 11,102 Trading revenue 5,505 >10
Slide 11: FY 12: Group income statement quarterly analysis
FY 12: Group income statement quarterly analysis 4Q 2012 3Q 2012 2Q 2012 Q1 2012 Nmillion Nmillion Nmillion Nmillion Interest income 15,283 14,539 14,075 13,921 Interest expense (8,330) (5,168) (5,103) (5,663) Net interest income 6,953 9,371 8,972 8,258 Non interest revenue 12,538 7,500 7,387 6,431
Slide 12: Revenue evolution
Revenue evolution Net interest income and net interest margin Net interest income by business unit CAGR (2010- 2012): 28% 2012 2011 Nmillion 40,000 5.28% 6.0% 4.98% 4.96% 35,000 5% 3% 5.23% 5.0% 30,000 4.38% 25,000 4.0% 20,000 3.94% 3.0% 40% 15,000 2.0% 45% 52% 10,000 5,000 1.0% 55% 20,447 27,642 33
Slide 13: Revenue evolution
Revenue evolution Non-interest revenue Breakdown of non-interest revenue CAGR (2010- 2012): 7% 100% 1% 1% 1% Nmillion 90% 24% 40,000 70% 80% 39% 32% 35,000 59.1% 60% 70% 50.0% 30,000 50.2% 50% 60% 25,000 50% 40% 20,000 40% 30% 75% 15,000 30% 67% 60% 10,000 20% 20% 5,000 10% 10% 29,594 27,605 33,856
Slide 14: Revenue evolution
Revenue evolution Total income Total income by business unit CAGR (2010- 2012): 16% 2012 2011 Nmillion 80,000 25.0% 67,410 18% 70,000 21% 55,247 20.0% 60,000 50,041 50,000 15.0% 44% 40,000 10.0% 53% 30,000 20,000 29% 10,333 10,157 5.0% 6,643 35% 10,000 - 0.0% 2010 2011 2012 Total income Profit after
Slide 15: Expenses evolution
Expenses evolution Interest expense Operating expenses Breakdown of operating expenses Nmillion Nmillion 100% 30,000 60,000 80% 24,264 70% 80% 45% 25,000 50,000 72.4% 49% 52% 75.6% 68.6% 60% 40,000 60% 20,000 50% 12% 8% 7% 15,000 30,000 40% 40% 30% 10,000 7,786 20,000 20% 44% 43% 41% 20% 3,895 10,00
Slide 16: Expense evolution
Expense evolution Credit impairment charges Credit impairment charges by product Nmillio 8,000 3.0% Change 2012 2011 6,391 6,000 2.5% % Nmillion Nmillion 4,000 2.0% 2,358 2,381 Mortgage lending (46) 219 409 2,000 968 504 1.5% Instalmental sales and finance lease > 100 1,149 91 0 1.0% 2010 2011 2012
Slide 17: FY 12: Group quarterly statement of financial position
FY 12: Group quarterly statement of financial position 4Q 2012 3Q 2012 Q2 2012 Q1 2012 Nmillion Nmillion Nmillion Nmillion Cash and balances with central banks 76,933 44,790 36,391 41,895 Trading assets 114,877 157,091 75,974 158,282 Pledged and derivative assets 26,149 25,579 27,902 23,882 Financia
Slide 18: FY 12: Group statement of financial position
FY 12: Group statement of financial position 2012 Change 2011 Nmillion % Nmillion Cash and balances with central banks 76,933 >100 30,074 Trading assets 114,877 73 66,476 Pledged and derivative assets 26,149 16 22,582 Financial investments 85,757 (4) 88,877 Loans and advances 320,662 6 302,771 Loans
Slide 19: Loans and advances
Loans and advances Gross loans and advances Breakdown of loans and advances Loans and advances by sector CAGR (2010- 2012):23% 100% 8% 10% 11% Nbillion Mortgage Agriculture 80% Real est.& 3.7% 300.0 279.5 3.8% constr. 266.1 Finance & 5.6% Insurance 60% 250.0 73% 74% Govt. 0.9% General 75% 1.6% comme
Slide 20: Loans and advances performance
Loans and advances performance Non-performing loans and NPL ratio Non-performing loans by sector Nmill 2012 2011 18,000 8.0% Consumer Agric. credits Mortgage Real est. Agric. Gen. 16,000 7.0% 0.1% 7.0% Real est. 2.2% Fin. & 3.1% 3.7% & constr. comm. 14,000 6.2% Mortgage & constr. ins. 0.1% Fin. & 9.
Slide 21: Deposits and current accounts
Deposits and current accounts Deposits from customers Breakdown of deposits by product CAGR (2010- 2012):38% 100% Nbillion 90% 400.0 80% 355.4 45% 49% 51% 350.0 70% 287.2 60% 300.0 50% 7% 250.0 5% 10% 6% 186.1 40% 4% 4% 200.0 30% 150.0 43% 20% 37% 39% 100.0 10% 50.0 0% 2010 2011 2012 0.0 2010 2011 2
Slide 22: Funding, liquidity and capital
Funding, liquidity and capital Funding mix Liquidity ratio 100% 13% 80% 90% 15% 71.4% 23% 8% 70% 80% 11% 10% 10% 60% 70% 9% 51.4% 13% 5% 60% 11% 50% 45.5% 4% 13% 2% 50% 2% 40% 40% 30% 30% 53% 52% 48% 20% 20% 10% 10% 0% 0% 2010 2011 2012 2010 2011 2012 Deposits from customers Deposits from banks Trad
Slide 23: Group shareholder value
Group shareholder value Average shareholders’ funds and return on equity Net asset value per share and price-to-book Nmillion kobo Times 90,000 18.0% 900.0 2.5 80,000 15.3% 16.0% 800.0 14.4% 2.0 70,000 14.0% 700.0 2.0 12.2% 11.4% 60,000 12.0% 600.0 10.9% 1.9 1.5 50,000 10.0% 500.0 40,000 6.8% 8.0% 4
Slide 24: 1Q 2013 results analysis
1Q 2013 results analysis 24 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Slide 25: 1Q 13: Performance highlights
1Q 13: Performance highlights • Gross earnings; up 30% to N26.6 billion (1Q 12: N20.4 billion) • Net interest income was flat at N8.3 billion (1Q 12: N8.3 billion) Continued growth • Non - interest revenue; up 85% to N11.9 billion (1Q 12: N6.4 billion) in revenues and profitability • Total income; i
Slide 26: 1Q 13: Performance highlights
1Q 13: Performance highlights • Net interest margin (annualised) 5.3% (1Q 12: 6.5%) • Cost-to-income ratio 67.0% (1Q 12: 74.6%) • Annualised pre tax ROaE 22.3% (1Q 12:16.8%) • Annualised after tax ROaE 14.9% (1Q 12:11.0%) Selected returns • Annualised after-tax ROaA 1.8% (1Q 12: 1.6%) and ratios • C
Slide 27: 1Q 13: Summarised group income statement
1Q 13: Summarised group income statement 1Q 2013 change 1Q 2012 Nmillion % Nmillion Interest income 14,666 5 13,921 Interest expense (6,411) 13 (5,663) Net interest income 8,255 0 8,258 Non-interest revenue 11,872 85 6,431 Net fee & commission revenue 6,968 37 5,078 Trading revenue 4,887 >100 1,327
Slide 28: Revenue evolution
Revenue evolution Net interest income and net interest margin Breakdown of net interest income Nmillion Change 1Q 2013 1Q 2012 9,000 8.0% % Nmillion Nmillion Interest income 5 14,666 13,921 8,000 7.6% 7.0% Interest on loans & advances to 7,000 6.0% 6.5% customers 3 10,572 10,290 6,000 Interest on lo
Slide 29: Revenue evolution
Revenue evolution Non-interest revenue Breakdown of non-interest revenue Nmillion Change 1Q 2013 1Q 2012 % Nmillion Nmillion 11,872 Net fee & commission revenue 37 6,968 5,078 12,000 Account transaction fees 9 895 820 Knowledge based fees and commission 35 4,538 3,374 10,000 Foreign currency service
Slide 30: Revenue evolution
Revenue evolution Total income Profit before tax Profit after tax CAGR (1Q 2011-1Q-2013):27% CAGR (1Q 2011-1Q-2013) 76%: CAGR (1Q 2011-1Q-2013): 84% Nmillion Nmillion Nmillion 25,000 5,000 4,752 4,000 3,573 20,127 4,500 20,000 3,500 4,000 3,457 3,000 14,689 3,500 2,501 15,000 3,000 2,500 12,384 2,50
Slide 31: Expense evolution
Expense evolution Interest expense Operating expenses and cost-to-income ratio Nmillion Nmillion 7,000 6,411 16,000 90% 5,663 14,000 80% 80% 6,000 75% 12,000 70% 5,000 67% 60% 10,000 50% 4,000 8,000 40% 6,000 30% 3,000 4,000 20% 2,000 2,000 1,135 9,859 10,953 13,490 10% 1,000 0 0% 1Q 2011 1Q 2012 1Q
Slide 32: Expense evolution
Expense evolution Credit impairment charges & credit loss ratio Breakdown of credit impairment charges Nmillion Change Q1 2013 Q1 2012 1,400 0.9% % Nmillion Nmillion 0.9% 1,228 1,200 0.8% 0.7% Mortgage lending >100 124 (72) 1,000 0.7% 0.6% Instalmental sales and finance 800 leases (48) 189 363 657 0
Slide 33: Q1 13: Group statement of financial position
Q1 13: Group statement of financial position Q1 2013 Change Q1 2012 Nmillion % Nmillion Cash and balances with central banks 59,421 (23) 76,933 Trading assets 260,362 >100 114,877 Pledged and derivative assets 24,127 (8) 26,149 Financial investments 110,448 29 85,757 Loans and advances 351,592 10 32
Slide 34: Loans and advances
Loans and advances Quarterly gross loans and advances Breakdown of gross loans and advances Nbillion Change 1Q 2013 FY 2012 300.0 283.5 279.5 284.5 % Nmillion Nmillion 277.0 276.3 250.0 Gross loans and advances 2 284,482 279,473 Mortgage lending 2 10,817 10,571 200.0 Instalmental sales and finance l
Slide 35: Loans and advances performance
Loans and advances performance Non-performing loans and NPL ratio Breakdown of non-performing loans Nbillion 30.0 12.0% Change 1Q 2013 FY 2012 25.0 10.0% % Nmillion Nmillion 9.6% 20.0 8.3% 8.0% Overdrafts (18) 643 788 6.6% 15.0 5.1% 6.0% Term loans (5) 9,880 10,353 10.0 5.3% 4.0% 5.0 2.0% Instalment
Slide 36: Deposits and funding mix
Deposits and funding mix Quarterly deposit liabilities Breakdown of deposit liabilities Nbillion 100% 450.0 423.6 90% 400.0 80% 43% 41% 355.4 51% 46% 70% 55% 350.0 315.8 60% 300.0 270.6 11% 246.2 50% 13% 8% 250.0 5% 6% 4% 40% 5% 8% 4% 4% 200.0 30% 150.0 20% 39% 43% 39% 42% 33% 10% 100.0 0% 50.0 1Q 2
Slide 37: Business segment performance review
Business segment performance review 37 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Slide 38: Corporate and Investment Banking
Corporate and Investment Banking Victor Williams Group Head, CIB 38 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Slide 39: FY 12: Summarised financial statement and selected ratios
FY 12: Summarised financial statement and selected ratios 2012 change 2011 Contribution to total income by business segment Nmillion % Nmillion 2012 2011 Net interest income 13,496 (5) 14,272 24% 33% 33% 37% Non-interest revenue 16,334 9 15,009 Total income 29,830 2 29,281 43% 30% Impairment charges
Slide 40: Key achievements in 2012
Key achievements in 2012 • Maintained market leadership in stock broking, investment banking, global markets as well as custody business. • Strong growth in assets under custody by over 100% to close at N2.1 trillion ($13.6billion) in 2012, with positive impact on revenue. • High trade and transacti
Slide 41: 1Q 13: Summarised financial statement and selected ratios
1Q 13: Summarised financial statement and selected ratios chang Contribution to total income by business segment 1Q 2013 e 1Q 2012 1Q 2013 1Q 2012 Nmillion % Nmillion 18% 26% 32% Net interest income 3,906 1 3,861 41% Non-interest revenue 6,936 >100 2,908 41% 42% Total income 10,842 60 6,769 Investme
Slide 42: Looking ahead
Looking ahead • Continue to o maintain market leadership in key areas of competitive advantage in investment banking, stock broking, custody and global markets. o focus on client engagement, execution and winning mandates. o grow low cost and stable deposits to improve margins. o focus on operationa
Slide 43: Personal & Business Banking
Personal & Business Banking Obinnia Abajue ED, PBB 43 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Slide 44: FY 12: Summarised financial statement and selected ratios
FY 12: Summarised financial statement and selected ratios 2012 change 2011 Contribution to total income by business segment Nmillion % Nmillion 2011 2012 Net interest income 18,374 46 12,564 11% 11% 30% 36% Non-interest revenue 5,154 53 3,376 Total income 23,528 48 15,940 53% 59% Impairment charges
Slide 45: Retail strategy – Moving in the right direction!
Retail strategy – Moving in the right direction! Key indicator FY2010 FY 2011 FY 2012 1Q 2013 Total income (Nmillion) 11,773 15,940 23,528 5,496 Total deposits (Nmillion) 82,091 111,207 164,031 182,477 Loans and advances (Nmillion) 56,693 89,592 105,055 109,533 Number of accounts 250,408 375,606 594
Slide 46: Key achievements in 2012
Key achievements in 2012 • Growing loan book despite the testing operating environment. Grew loan book by 13%. • Growth in transactional volumes and activities, with positive impact on revenue. • Achieved a 48% growth in deposit liabilities with higher low cost and stable deposits. • Continued growt
Slide 47: 1Q 13: Summarised financial statement and selected ratios
1Q 13: Summarised financial statement and selected ratios 1Q 2013 change 1Q 2012 Contribution to total income by business segment Nmillion % Nmillion 1Q 2013 1Q 2012 10% 11% Net interest income 3,837 (5) 4,027 41% 38% Non-interest revenue 1,659 54 1,079 Total income 5,496 8 5,106 49% 51% Impairment
Slide 48: Looking ahead
Looking ahead • Continue to o focus on growing our client base across all our lines of businesses with particular attention to personal banking and SMEs. o Focus on our costs to reverse the cost direction and improve operating efficiency as we approach scale. o focus on improving asset quality to br
Slide 49: Wealth
Wealth 49 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Slide 50: FY 12: Summarised financial statement and selected ratios
FY 12: Summarised financial statement and selected ratios Contribution to total income by business segment 2012 change 2011 Nmillion % Nmillion 2012 2011 1% Net interest income 1,684 >100 806 15% 19% Non-interest revenue 12,368 34 9,220 Total income 14,052 40 10,026 84% 81% Operating expenses (6,581
Slide 51: Key achievements in 2012
Key achievements in 2012 • Achieved record assets under management of N990.88 billion (US$6.19 billion) to maintain position as the largest investment management business and number one wealth manager in Nigeria with Stanbic IBTC Asset Management crossing the N100 billion mark in assets under manage
Slide 52: 1Q 2013: Summarised financial statement and selected ratios
1Q 2013: Summarised financial statement and selected ratios Contribution to total income by business segment Q1 2013 change Q1 2012 Nmillion % Nmillion Q1 2013 Q1 2012 1% 0% Net interest income 512 38 370 16% 14% Non-interest revenue 3,277 34 2,444 Total income 3,789 35 2,814 83% 86% Operating expen
Slide 53: Looking ahead
Looking ahead • To launch two new funds in the alternative asset class. • Identification of new markets and getting a larger share of the existing business by intensifying relationships with State Governments & leading Asian businesses at the highest level in the pension business. • Focus on service
Slide 54: Prospects and outlook
Prospects and outlook Sola David-Borha CEO, Stanbic IBTC Holdings PLC 54 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Slide 55: Key strategic imperatives
Key strategic imperatives Our core strategy to build a scalable domestic universal banking franchise remains unchanged. • Provide clients with end-to-end financial solutions to meet their banking, financing and wealth management needs. • Capitalise on and maintain our market leadership position in o
Slide 56: 2013: Looking ahead
2013: Looking ahead • Continue to consolidate investment in infrastructure and sweat the assets we have invested in. • Focus on growing our demand deposit ratio from the current 55% as at end Q1 2013. • Financial inclusion – Use mobile banking license and Non-interest banking window to expand custom
Slide 57: Q & A
Q&A 57 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Stanbic IBTC Holdings — FY2012 and Q1 2013 Earnings Presentation on 6ix