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7/31/2019 Diamond Bank - IR Presentation (Q3 2012 Results) 161012
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Investor call presentation
9-Month Results
7/31/2019 Diamond Bank - IR Presentation (Q3 2012 Results) 161012
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Forward lookin statements
This presentation contains or incorporates by reference forward-looking statements regarding the belief or current expectations ofDiamond Bank, the Directors and other members of its senior management about the Groups businesses and the transactions
. , , , , , , , ,similar expressions identify forward-looking statements.
These forward-looking statements are not guarantees of future performance. Rather, they are based on current views andassumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of the
ompany an or s roup an are cu o pre c , a may cause ac ua resu s o er ma er a y rom any u ure resu s or
developments expressed or implied from the forward-looking statements. Such risks and uncertainties include, but are not limitedto, regulatory developments, competitive conditions, technological developments and general economic conditions. The Bankassumes no responsibility to update any of the forward looking statements contained in this presentation.
Any forward-looking statement contained in this presentation based on past or current trends and/or activities of Diamond Bankshould not be taken as a representation that such trends or activities will continue in the future. No statement in this presentation isintended to be a profit forecast or to imply that the earnings of the Company for the current year or future years will necessarily
match or exceed the historical or published earnings of the Company. Each forward-looking statement speaks only as of the date.
revisions to any forward-looking statements contained herein to reflect any change in Diamond Banks expectations with regardthereto or any change in events, conditions or circumstances on which any such statement is based.
2
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Outline
. ,
9-Month 2012 YTD Financial Performance (by Abdulrahman Yinusa, CFO)
Business Segments Performance (by Abdulrahman Yinusa, CFO)
Concluding Remarks (by Dr. Alex Otti, GMD)
3
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Overview
The macro-economic pulse of the Nigerian economy has been quite supportive to investments with
over N6.8 trillion local and Foreign Direct Investment (FDI) commitments on the back of stableeconom c ac v es, sca s a y an mprove power supp y
Central Bank of Nigeria (CBN) has continued to manage liquidity through tightening of monetary
open position (NOP) to 1 percent from 3 percent
Activit in the ca ital market is ickin u as evidenced b the ear-to-date rowth of 25 in the NSE
All Share Index. This is driven by the stronger demand for stocks following the continued improved
performance of quoted companies, as well as the introduction of market makers within the 3rd Quarter
The 9-months 2012 performance of Diamond Bank points to a healthy and sustainable profitability
QoQ on the back of an improved and more efficient balance sheet growth
4
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7/31/2019 Diamond Bank - IR Presentation (Q3 2012 Results) 161012
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2012 2013 Sustaining the Momentum
Corporate Banking
Provision of state-of-the-art, low cost and efficient
banking services, with a focus on increasing fee-
Human Capital Management
Create a culture of ownership, responsibility and
accountability through the roll out of our performance
based income
Re-engineer processes to improve efficiency and
create a sustainable business model and culture
mon tor ng an consequence management n t at ve
Retaining our best people through the use of an
aggressive reward and recognition model and
competitive remunerations
Maintain focus on strategic objective of consistently
providing a superior customer experience
Increase market penetration by deepening existing
Operational EffectivenessEnhance online capabilities for transactions and
reporting
customers relationships
Standardize propositions and products in line with
target operating model
long term through automation and centralization of
customer service function and transformation of
channel services (Diamond Online Reload)
Customer experience
Creation of Service Champions to ensure durability
of service culture in our various branches and
Risk management
Implementation of portfolio planning that recognizes
relative threats and opportunities across economic
sectors
6
headoffice
Creation of a Service Idea Box to elicit feedback
from all staff
Implementation of a Credit Sanction Grid with the aim of
checking the incidence of credit abuses in the bank
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9M 2012 Grou Performance Anal sis
P&L (NBn) Sep 2012 Sep 2011 % Growth Comments
Gross Earnings 110 69 59
Operating Profit 47 20 135
following from similar profitability reported
in Q1 2012 and Q2 2012
Profit Before Tax 23 (6.9) 436million from International FinanceCorporation (IFC) concluded in Q3 2012.
Total Tier 2 capital now stand at $170
Balance Sheet (NBn) Sep 2012 Sep 2011 % Growth
million as at September 30, 2012 with
another $30 million at advanced stage of
negotiation to bring the total to $200m out
Total Assets 1,029 715 44
Loans to Customers 540 370 46
of the $500 million planned to be raised
this year
7
Deposits 777 530 47
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Forecast for 2012 Profitabilit Revised U wards
Impact on P&L NBn NBn
Operating Profit 55.0 / 60.0
Deposits (NBn)Operating Profit and PBT (NBn)
55.0/60.0
Provision for Losses
- Direct Provision (Circa) ~(20.0)
27.8
46.657.5
23.2 27.5
25.0/30.0
- r te-o s ~ 10.0 ~ 30.0
Profit/(Loss) Before Tax 25.0 / 30.0
-16.3
2011 9M 2012 2012 est
Operating Profit PBT
Sustained profitable growth in Q3 . This was due to solid
Comments
2011 2012 est 2013 est
ROE
,
revenues and growth in other fee-based activities
Provisioning levels are on target (after adjusting for the
accounting treatment of loan write-offs)
>18%
8
ROE of high teens expected by year-end-11.2%
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Outline
nin m n n r . ,
9-Month 2012 YTD Financial Performance (by Abdulrahman Yinusa, CFO)
Business Segments Performance (by Abdulrahman Yinusa, CFO)
Concluding Remarks (by Dr. Alex Otti, GMD)
9
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FinancialHighlightsStrongBalanceSheetGrowth
Assets Loans(net) Deposits(Dec.2011to
Sep.2012) +28%+28% +27%+27% +29%+29%
Stablenetinterestmar in above9%inthelast3 ears 9.1%in9M2012Stablenetinterestmar in above9%inthelast3 ears 9.1%in9M2012Operatingincomeup107.1%YoY,outpacingrevenuegrowthLowcostoffunds below3.5%since2010and2.8%inH12012Operatingincomeup107.1%YoY,outpacingrevenuegrowthLowcostoffunds below3.5%since2010and2.8%inH12012RevenueMix
ContinuousimprovementinCosttoIncomeratio 50.1%in9M2012,from67.6% in9M2011GrowingRetailBankingbusiness 48%ofNairadeposits;drivinghighmarginsandsustainableearningsUpwardswingtoprofitabilityfollowinglossin2011
ContinuousimprovementinCosttoIncomeratio 50.1%in9M2012,from67.6% in9M2011GrowingRetailBankingbusiness 48%ofNairadeposits;drivinghighmarginsandsustainableearningsUpwardswingtoprofitabilityfollowinglossin2011
Efficiencyand
Profitability
Capitalratios 16.2%riskadjustedcapitalratioin9M2012 (fortheBank)against15%statutorylimitTier2Capitalinflowof$170m.Additionalinjectionofabout$330milliontobeinjectedinQ42012MinimumCARofabove17%expectedby31st Dec.2012
Capitalratios 16.2%riskadjustedcapitalratioin9M2012 (fortheBank)against15%statutorylimitTier2Capitalinflowof$170m.Additionalinjectionofabout$330milliontobeinjectedinQ42012MinimumCARofabove17%expectedby31st Dec.2012
Capital
10
ImprovingNPL 5.2%inQ32012,from7.6%inJun.2012and9.4%inDec.2011.Targetbelow5%byDec2012Coverageratio 128.3%inQ32012from64.7%inDec.2011ImprovingNPL 5.2%inQ32012,from7.6%inJun.2012and9.4%inDec.2011.Targetbelow5%byDec2012Coverageratio 128.3%inQ32012from64.7%inDec.2011AssetQuality
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Grou Statement of Com rehensive Income 9M 2012
9M 2012
N' billion
9M 2011
N' billion
YoY
%
Q3 2012
N' billion
Q2 2012
N' billion
Q1 2012
N' billion
Q3/Q2
%
Comments
Gross Earnings 109.9 69.0 59.3 45.0 34.2 30.7 31.6
Net Interest Income 72.4 52.2 38.7 30.4 21.8 20.2 39.4
or N41 billion to N110
billion (YoY) and up
11% (QoQ). This was
driven by sustained
growth in risk assetsmpa rmen arge (23.4) (26.4) (11.4) (13.3) (5.5) (4.6) 141.8
Net interest income(after impairment charge) 49.0 25.8 89.9 17.1 16.3 15.6 4.9
volume and fee
generating transactions
Net interest income up
39% (YoY) to N72 billion
21.0 8.0 162.5 8.4 6.9 5.7 21.7
Operating Income 70.0 33.8 107.1 25.5 23.2 21.3 9.9
O eratin Ex enses
107% or N36 billion
(YoY) and up 10% QoQ
. . . . . . .
Profit Before Tax 23.2 (6.9) 436.2 7.8 7.6 7.8 2.6
Profit After Tax 18.1 (6.1) 396.7 8.1 4.9 5.1 65.3
11
Other comprehensive income 0.2 (0.4) 50.0 0.2 (0.2) 0.2 200.0
Total comprehensive income 18.3 (6.5) 381.5 8.3 4.7 5.3 76.6
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Grou Ke Underl in Profit Drivers
52.272.4
Net Interest Income (YoY: +39%, QoQ: +39%)
21.0
Non-interest Income (YoY: +163%, QoQ: +22%)
NBillionNBillion
21.830.4
Sep. 2011 Sep. 2012 Q2 2012 Q3 2012
8.0 6.9 8.4
Sep. 2011 Sep. 2012 Q2 2012 Q3 2012
40.7
46.8Operating Expenses (YoY: +15%, QoQ: +13%)
NBillion
26.423.4
Impairment Charge (YoY: -11%, QoQ: +142%)NBillion
15.6 17.7
Sep. 2011 Sep. 2012 Q2 2012 Q3 2012
5.5
13.3
Sep. 2011 Sep. 2012 Q2 2012 Q3 2012
Net interest income up 39% YoY driven by sustained growth in lending activities. Customer loans increased by N170 billion from N392
billion in Sep. 2011 to N540 billion as at 30th September 2012.
Comments
Impairment charge down 11% YoY on the back of improved quality of loan book, however increased 142% QoQ following accounting
treatment of fully-provided loans that were written off in Q3 2012
12
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Grou Statement of Financial Position 9M 2012
9M 2012
N' billion
FY 2011
N' billion
9M 2011
N' billion
YtD
%
Q3 2012
N' billion
Q2 2012
N' billion
QoQ
%
Cash & Balances with Central Banks 96.1 55.8 29.5 72.2 96.1 70.1 37.1 Net loan book of N540
Comments
Loans & Advances to Banks 115.0 90.6 97.3 26.9 115.0 99.6 15.5
Loans & Advances to Customers 539.6 392.0 369.9 37.7 539.6 505.7 6.7
Investments 146.1 190.0 134.1 (23.1) 146.1 120.0 21.8
billion, up 38% from
December 2011 and up
7% QoQ
Deposit base of N777
billion u 29% fromPledged Assets 57.6 13.5 21.4 326.7 57.6 63.8 (9.7)
Fixed Assets & Intangibles 43.3 39.5 38.5 9.6 43.3 40.0 8.2
Deferred Tax Asset 14.1 10.8 7.6 30.6 14.1 11.0 28.2
December 2011 and up
14% QoQ
Total assets up 28% to
N1.03 trillion from N803
billion as at December . . . . . . .
Total Assets 1,028.6 802.7 714.9 28.1 1,028.6 960.1 7.1
Deposits from Banks 11.0 21.0 6.3 (47.6) 11.0 9.4 17.0
Deposits from Customers 776.8 603.0 530.0 28.8 776.8 679.3 14.4
2011 and up 7% QoQ
Other Liabilities 55.5 31.5 56.6 76.2 55.5 106.8 (48.0)
Borrowings 51.9 54.9 26.5 (5.5) 51.9 55.8 (7.0)
Tier 2 Capital 26.7 - - - 26.7 15.8 69.0
13
Un-Audited Profit After Tax 18.3 - - - 18.3 4.9 273.5
Equity 88.4 92.3 95.5 (4.2) 88.4 88.1 0.3
Total Equity & Liabilities 1,028.6 802.7 714.9 28.1 1,028.6 960.1 7.1
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Ke Performance Metrics 9M 20129M 2012 H1 2012 Q1 2012 FY 2011
NIM 9.1% 9.2% 9.5% 8.8%
NPL Ratio 5.2% 7.6% 8.0% 9.4%
Cost of Risk 6.3% 4.2% 4.7% 11.6%
Cost of Funds 2.8% 2.8% 2.7% 2.2%
Coverage Ratio* 128.3% 92.5% 87.4% 64.7%Loan-to-Deposit Ratio 74.4% 80.0% 72.7% 69.2%
Capital Adequacy Ratio (CAR) 14.9% 13.1% 12.4% 13.9%
Liquidity Ratio 34.1% 39.6% 46.1% 46.3%
Cost to Income Ratio 50.1% 53.3% 51.9% 66.7%
The Group Net Interest Margin (NIM) marginally declined to 9.1% in September from 9.2% in H1 2012 due to increase in foreign
currency loans with lower yields compared to the yield on naira loans
Comments
14
CAR of 16.2% (Bank) and 15% (Group) following Tier 2 capital injection of $170 million (N26.7 billion) and capitalization of audited
half-year post-tax profit. Arrangement under way for additional Tier 2 capital of $330m to be injected in Q4 2012
*Note: Coverage Ratio is based on IFRS model of Loan Probability of default, while Nigerian GAAP gives 80% Coverage Ratio.
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Grou Risk Mana ement Metrics 9M 201
9M 2012
N billion
H1 2012
N billion
Q1 2012
N billion
Q4 2011
N billion
. . . .
NPL 30.0 41.4 37.4 39.4
38.3 32.7. .
NPL Ratio 5.2% 7.6% 8.0% 9.4%
NPL Coverage Ratio* 128.3% 92.5% 87.4% 64.7%
Comments
overage a o mprove o . n ep em er rom . n une .
NPL ratio of 5.2% in September from 7.6% in June 2012
Target NPL ratio for December 2012 still remains < 5.0%
*Note: Coverage Ratio is based on IFRS model of Loan Probability of default, while Nigerian GAAP gives 80% Coverage Ratio.
15
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Grou Balance Sheet Structure
960 1,029
Balance Sheet Trend (NBn)
1,029 211
Total Assets (NBn) Sep 2012 (Dec 2011)
803 146
603679
777
392506 540
540
146
392
190
Dec. 2011 Jun. 2012 Sep. 2012
Total assets & Contingents Deposits Loans & Advances
43 31
TotalAssets
LiquidAssets
RiskAssets
Investments PledgedAssets
FixedAssets
OtherAssets
40 21
Balance sheet up N226 billion or 28% to N1.03 trillion year-to-
date (Dec 2011 N803 billion) and up 14% QoQ. The growth
Comments
1,029 11 777
Total Liabilities (NBn) Sep 2012 (Dec 2011)
803 60321
year-to-date and Tier 2 Capital of N27 billion
Net Risk Assets up by N148 billion or 38% to N540 billion (Dec.
2011: N392 billion) and up 7% QoQ
De osit base stood at N777 billion re resentin a 29%56
52 55 032
16
increase from the N603 billion recorded by FY 2011 and 14%
increase QoQ
107
Total Liabilities Dep. FromBanks
Deposits OtherLiabilities
Borrowings Tier 2 Capital Equity
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Grou Lendin
Dec-11Gross Loan Breakdown Dec 2011 (Jun 2012)
N417Bn (N544Bn)
Sep-11
N578Bn
Gross Loan Breakdown Sep 2012
12%
13%
7%
6%
5%
General Comm 25% (25%)
Oil & Gas 19% (26%)
Real Est & Const 13% (11%) 24%
6%
6%
Oil & Gas 27%
General Comm 24%
Manufacturing 12%
19%
5%
5%
Manufacturing 12% (11%)
Power & Energy 7% (5%)
Consumer Credit 6% (10%)
Others 5% (1%)
5
4%
3%
Real Est & Const 9%
Others 6%
Government 6%
Power & Energy 5%
25%1%
1%
ICT 5% (3%)
Government 5% (5%)
Agriculture 1% (1%)
Trans ortation 1% 1%
27%
1%
1%
Consumer Credit 4%
ICT 3%
Agriculture 2%
Trans ortation 1%
17
Finance and Ins. 1% (1%) Finance and Ins. 1%
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Grou Loan and De osits Growth
777
Loan Growth, Non Performing Loans (NBn) &
Deposits Growth
266.5Over 12 months
Chart TitleGross Loan Analysis by Maturity (NBn) Sep 2012
(Dec 2011)
417466
544 578
603 641679
81.3
.
100.0
120.4
1-3 months
0 - 30 days
39 37 41 30
Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012
75.3
.
34.4
56.9
3-6 months
6-12 months Sep. 2012
Dec. 2011
Loan to Deposit Ratio
Loans and advances (gross) were up by 38% to N578 billion year-to-
Comments
.
69.2% 72.7%.
74.4%date and up 6% QoQ (Dec 2011: N417 billion). The growth in loan
portfolio is driven by our growing customer relationships especially
in the corporate end
About 54% of loan portfolio falls within 12 months while 46% are
18Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012
medium to long term loans
The loan to deposit ratio (LDR) of 74.4%
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Grou NPL Anal sis
General Commerce 29%
NPL by Sector (Dec. 2009)NPL by Sector (Sep 2012) NPL by Category
N39.4Bn N41.4BnN47.7Bn N30.0Bn
as nergy
Consumer Credit 15%
Transp. & Comm. 11%
Manufacturin 6%N30.0Bn
39% 39%
74% 58%
18% 22%
Others 5%Agriculture 4%
Real Estate & Constr. 2%
8%
20%
Sep. 2011 Dec. 2011 Jun. 2012 Sep. 2012Substandard Doubtful Lost
General Commerce 35%
NPL by Sector (Dec 2011)
General Commerce and Oil & Gas sectors account for
Comments
Real Estate & Constr. 11%
Transp. & Comm. 9%N39.4Bn
Asset quality continues to improve as non-performing
loans (NPL) declined to N30 billion in Q3 from N41 billion
Q2 while gross risk assets increased to N578 billion in Q3
Manufacturing 3%Others 4%
19
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Grou Asset Qualit
11.5%
NPL Ratio
128.3%
Coverage Ratio
9.4%8.0% 7.6%
5.2%57.6% 64.7%
87.4% 92.5%
Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012 Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012
7.1%
11.6%
6.3%
Cost of Risk
Non-performing loans (NPL) ratios improved to 5.2% in Q3 from
7.6% in Q2. NPL Ratio to be brought to
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Bank Ca ital and Li uidit
17.9%
14.9% 15.2% 16.2%
Capital Adequacy (CAR)
28%
Liquid Assets Sep 2012 (Dec 2011)
Sep. 2012 (Outer Circle)Dec. 2011 (Inner Circle).
10% 10% 10%
15% 15%
21%
38%16%
Cash & Equivalent
Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012
Actual CAR Stat. Minimum Requirement
56%
Placement
Treasury Bills
44.2%46.3% 45.9%
39.6%
Liquidity
Further injection of Tier-2 capital in Q4 will increase CAR to over
17% by year end
Comments
34.1%
30% 30% 30% 30% 30%
The deposit liabilities funded over 75% of the groups total
assets
Decrease in liquidity ratio to 34.1% in Q3 from 39.6% in Q2 on the
back of increase in cash reserve ratio (CRR) to 12% from 8% in
21
Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012
Liquidity Stat. Minimum Requirement
July by the Central Bank of Nigeria
Continue to focus on stable source of funding to exploit marketopportunities
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Outline
. ,
9-Month 2012 YTD Financial Performance (by Abdulrahman Yinusa, CFO)
Business Segments Performance (by Abdulrahman Yinusa, CFO)
Concluding Remarks (by Dr. Alex Otti, GMD)
23
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Grou Business Se ments
Business
Lines Retail Banking Business Banking Corporate Banking Other Subsidiaries
Retail banking providesconsumer loans, mortgageloans, credit card and otherfacilities, handling deposits forindividuals and legal entities,
Focus is to grow a diversifiedand profitable asset base,increase deposits, fee basedbusiness & international trade,finance. Also deliver client
The Corporate Banking ispositioned to provide leadingfinancial services capabilitiesto large local and multinationalcorporate clients in the various
Diamond Bank Benin (DBB),Diamond Bank Cote dIvoire,Diamond Bank Senegal,Diamond Bank Togo, andDiamond Pension Fund
Description
affluent segment, retail mass
markets and Micro, Small &Medium scale Enterprise(MSME) businesses
beneficial business
relationships with small,medium and fairly large-scalebusiness enterprises, as well ashigh net-worth and medium
economy
Expertise in financingstrategies to empower ourclients ambition as we work
Deposits
income individuals
N267.8bn (Q2: N265.1bn) N364.2bn (Q2: N295.8bn ) N63.4bn (Q2: N51.0bn ) N81.4bn (Q2: N67.4bn)
Risk Assets
(net)
NPLs
N68.0bn (Q2: N65.1bn) N211.2bn (Q2: N204.4bn) N209.8bn (Q2: N190.2bn) N50.6bn (Q2: N46.0bn)
N6.8bn N13.9bn N6.0bn N3.3bn
24
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Retail Bankin
Branch Expansion Plans 130 branches in the next
two years through a combination of organic growth and
Retail Banking Growth Strategy
Over 1.9 million retail clients with about 2,400 new product sales per day
and over 220 branches
Current Position
Customer
Recruitment
Maximise relationship value through differentiated
product suite (Assets : Auto loans, personal,
mortgage and credit cards; Liabilities: SavingsXtra,
Xclusive, etc.)
Monthly recurring fee income increased from less than NGN100mn in
June 08 to over N900m in September 2012
One of the most innovative retail bank in Nigeria
Best Credit Card in Nigeria award (2nd year running) (Expo Africa)
Focus on adding value to customers and lowering
barriers to banking developing propositions for un(der)banked population through partnerships with EFINA,
WWB, USAID and IFC
Implementation of the above growth strategies expected to increase
Over 7,348 POS deployed
Total retail deposits of N267.8bn funds about 48% of banks Naira
balance sheet and accounts for 34% of total deposits
Total risk assets of N68.0bn comprises 12.6% of total loan portfolio
5.3 4.8
Retail Risk Assets Classification (NBn)
number of active customers and diversify income streams
Geographic Presence
3.9 2.7 2.7 2.6
9.3 8.7 8.4 8.2 7.9
30.5 33.3 33.0 34.7 38.1
. . .
South South
Total: 23
North East
Total: 13
South West
Total: 13
South East
Total: 48
223
Total: 76
25
.2 . . 11.5 10.2.
Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012Personal Loan Autoloan and Lease Mortgages MSME Credit Card
North CentralTotal: 39North WestTotal: 11
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Retail Banking The Most Customer Centric Retail Bank in Nigeria
PersonalLoan 15%
(24%)
Sep 2012 (Dec 2011)
18% 24%
Time
deposits12% (10%)
Sep 2012 (Dec 2011)
Mortgage12%
(13%)
24%
13% (13%)
MSME
CreditCard 13%
(7%)
53% (51%)
Savings &Current
A/C 88%
(51%) Autoloan& Lease4% (4%)
Total Retail Loans N68bn (Dec 2011: N65bn) Total Retail Deposits N268bn (Dec 2011: N230bn)
Optimise channel mix to enable customers to self-select the most appropriate channel to interact with us in a way that provides value to
the customer and the organisation
Offerin consumers the broadest ran e of services throu h full multi-channel inte ration and o timization
Comments
26
Training the sales force and relationship managers to be more effective and efficient
Customized cross-selling by leveraging relationships, brand and technology
Segmenting our mass customer base is key to delivering relevant personal banking solutions
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Retail Bankin Quarterl Trend in De osits
Retail Deposits (NBn)
28% 17%
Customer Recruitment - Focus on adding value tocustomers and lower barriers to banking through
Strategy for deposit growth
90% 90% 88% 88% 88%
10% 10% 12% 12% 12%
creating a consistent customer experience acrosskey channels: branches, online, mobile devices, andcontact centres
N210bn N230bn N248bn N265bn N268bn
Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012
Low Cost Deposits Fixed Deposits
- -Liabilities Grow customers base by providinginnovative product propositions to suit their needs.
Customer Experience Provide a consistentexperience across all channels while directingcustomers to their channels of choice.
51% 51%
Deposits (NBn)Retail Deposits to Banks Total Deposits Naira (%)
Customer Centricity48% 48%
Achieving
Leadership
in Retail
Financial
Niche Market
Deployment of modern technology
27Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012
Operational excellence
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Retail Bankin Continues to show Health Growth
Retail Quarterly Fee Revenue (NBn)
50% 69%65.0 65.1 68.0
Retail Risk Assets (NBn)
1.81.6
1.92.2
2.7. .
Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012
8% 8% 10% 12% 13%
Retail Risk Assets Classification (NBn)
Regular monthly Fee Income for Q3 2012 of over N900
million
Comments
6% 4% 4% 4%
15% 13% 13% 13% 12%
48% 51% 52% 53% 56% Average product sales approaching 50,000 per month
High margin, high fee business driving growth in
profitability
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23% 24% 21% 18% 15%
Sep. 2011 Dec. 2011 Mar. 2012 Jun. 2012 Sep. 2012
Personal Loan Autoloan and Lease Mortgages MSME Cre. Card
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Outline
. ,
9-Month 2012 YTD Financial Performance (by Abdulrahman Yinusa, CFO)
Business Segments Performance (by Abdulrahman Yinusa, CFO)
Concluding Remarks (by Dr. Alex Otti, GMD)
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Diamond Bank Outlook for Q4 2012
The return to profitability since Q1 of 2012 is expected to continue in Q4 2012 following
Despite persisting security challenges in some parts of the country, the overall investment
,
Sectors
Our growth strategy remains focused on organic expansion in the short term to deliver
superior shareholder value
On the back of our sustained profitability in Q3 2012, we have again reviewed ourprofitability projection for Full Year 2012 upwards with target ROE from minimum of 15%
to above 17.5% by the end of the 2012 Financial Year
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Bank Statement of Financial Position 9M 2012
9M 2012
N' billion
FY 2011
N' billion
9M 2011
N' billion
YtD
%
Q3 2012
N' billion
Q2 2012
N' billion
QoQ
%
Cash & Balances with Central Banks 76.4 54.4 22.1 40.4 76.4 54.4 40.4
Comments
Loans & Advances to Banks 97.0 72.1 86.3 34.5 97.0 85.9 12.9
Loans & Advances to Customers 489.0 347.3 355.7 40.8 489.0 459.7 6.4
Investments 131.5 179.2 118.4 (26.6) 131.5 109.1 20.5
Net loan book up 41% or
N142 billion to N489
billion year-to-date, this
implies acceleration of
9% in Q3 2012, from 32%
rowth in H1 2012 to 41% . . . . . . .
Fixed Assets & Intangibles 39.9 35.9 34.6 11.1 39.9 36.8 8.4Deferred Tax Asset 14.0 10.8 7.5 29.6 14.0 10.9 28.4
Other Assets 13.4 6.3 13.5 112.7 13.4 44.0 (69.5)
growth in 9M 2012.
Deposit base up 14% to
N695 billion (QoQ) and
up 28% year-to-date
Total Assets 918.8 719.5 659.5 27.7 918.8 864.6 6.3
Deposits from Banks 6.2 3.9 4.6 59.0 6.2 4.8 29.2
Deposits from Customers 695.4 545.2 485.5 27.5 695.4 612.7 13.5
Total assets up N54
billion or 6% QoQ to
N919 billion and up 28%
year-to-date (Dec 2011:
N719 billion)
er a es 35.0 26.4 30.4 32.6 35.0 83.8 (58.2)
Borrowings 51.9 54.9 26.5 (5.5) 51.9 55.8 (7.0)
Tier 2 Capital 26.7 - - - 26.7 15.8 69.0
-
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. - - - . . .
Equity 85.1 89.1 112.5 (4.5) 85.1 86.8 (2.0)
Total Equity & Liabilities 918.8 719.5 659.5 27.7 918.8 864.6 6.3
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Bank Ke Performance Metrics 9M 2019M 2012 H1 2012 Q1 2012 FY 2011
NIM 9.7% 9.7% 10.0% 9.1%NPL 5.1% 7.7% 8.2% 9.9%
Cost of funds 2.8% 2.8% 2.6% 2.1%
Coverage 136.0% 95.5% 91.4% 69.9%
Loan-to-Deposit Ratio 75.6% 80.9% 72.4% 68.4%
Capital Adequacy 16.2% 15.2% 13.3% 14.9%
Liquidity 34.1% 39.6% 45.9% 46.3%
Cost to Income Ratio 48.3% 51.4% 49.5% 64.5%
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Bank Risk Mana ement Metrics 9M 201
9M 2012
N billion
H1 2012
N billion
Q1 2012
N billion
Q4 2011
N billion
. . . .
NPL 26.7 38.0 34.9 36.9
Provisions 36.6 36.3 31.9 25.8
NPL ratio 5.1%7.7% 8.2%
9.9%NPL coverage 136.0% 95.5% 91.4% 69.9%
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