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Stanbic IBTC Presentation / page 1 /
Stanbic IBTC Holdings PLCNine months 2019 Results Presentation
Stanbic IBTC Presentation / page 2 /
Table of Content
Business units results
Page 8Financial review - Nine months 2019
Page 3Background and operating environment
Appendix
Outlook and guidance for Q4 2019
Page 23
1
2
4
5
Page 37
Page 40
3
Background and the operating environment
Stanbic IBTC Presentation / page 4 /
We measure our progress using five strategic value drivers
Mission
Vision
Committed to solutions that drive your progress.
To be the leading end-to-end financial solutions provider in Nigeria through innovativeand customer focused people.
In executing our group strategy our key focus areas are
Digitisation
Universal Financial
Service Offering
Client centricity Do valuable things for clients
Digitise front to back
Seamlessly deliver relevant,
holistic solutions
SEE = Social, economic and environmental
Strategic focus
Stanbic IBTC Presentation / page 5 /
Stanbic IBTC: Nigeria’s leading financial services group
AAA(nga)
B/stable/B(Bank)
AA(ng)(Bank)
2.4 million Banking
Customers
10,771 POS
176 Branches
24 BNAs&
697 ATMs
N3.63trnAuM
1.72 million RSAs
N6.42trnAuC
Market Leadership
Position
14 Mutual funds
No. 1 FX Liquidity Provider
Largest Pension and
Non-Pension Asset Manager
Best Advisory and
Investment Bank
Largest Custodial
service firm
No. 1 Stockbroking
firm by market share of trade
value
Stanbic IBTC Presentation / page 6 /
Reserves, Brent Crude Oil Price & Crude Oil Production
Inflation (%)
Interest Rates
Exchange Rate Movement
❖There has been pressure on the external reserves whichclosed at $41.8 billion in September 2019 from its peak of$45 billion in June 2019 due to a combination of portfoliooutflows and oil price volatility as well as the sustainedintervention of the CBN in the FX market. The reservesposition remains at levels sufficient to cover over 10months of import, nonetheless.
❖Brent crude oil prices have been volatile mainly impactedby the pessimism over US-China trade talks. The attack onSaudi Arabia’s oil outfit also ignited some volatility. Nigeriaoil production averaged 1.8m bpd over the period.
❖The NGN/USD rate which saw some level of appreciationat the beginning of the year witnessed some pressure inthe third quarter due to the decreasing pace of portfolioinflows. The pace of portfolio investments slowed amid oilprice volatilities and drop in yields.
❖Headline inflation was mostly sticky over the nine monthsperiod of 2019 (averaging 11.25%). Risks remain to theupside as we expect elevated food inflation on the back ofsupply shortages from the recent border closures.
❖The NSE All Share Index (ASI) recorded a negative YtDreturn of 12.1% as at September 2019 due to the weakunderlying macroeconomic environment. Investmentflows into Nigeria equity assets have been muted despitethe Nigeria listing of two major telecommunications giantsduring the period.
Source: IMF/NBS/CBN/BMI
Macro-economic and operating environment
0%
5%
10%
15%
20%
25%
30%
Average inter-bank call rate Tbills - short term
Tbills - medium term Tbills - long term
Bond - 3 year
1.6
1.65
1.7
1.75
1.8
1.85
1.9
- 10 20 30 40 50 60 70 80 90
Reserves (US$ billions)
Brent Crude oil (US$).Month end price
Crude oil production (million bpd)
11.28
11.26
11.28
11.44
11.37
11.31
11.25
11.37 11.40
11.22
11.08
11.02
11.24
280
300
320
340
360
380
400N
GN
/ U
SD
rate
CBN Parallel marketNAFEX I&E FX Window
Stanbic IBTC Presentation / page 7 /
Regulatory measures to improve lending to the real sector of the Nigerian economy (a revised circular was issued in October 2019
increasing the minimum LFR to 65% by December 2019)
CBN press release on FX restriction on the importation
of milk
Global Standing Instruction (GSI)
Circular on the operation of Mobile Money wallets by
Deposit Money Banks
Guidelines on accessing the CBN Standing Deposit Facility.
Regulatory Update
July 2019July 2019
July 2019July 2019
Sept 2019
BLUE DIVIDERFinancial Review: 9M 2019
Stanbic IBTC Presentation / page 9 /
52.1
50.9
9M 2018
9M 2019
%
39.0
27.5
9M 2018
9M 2019
%
Summary of Nine months 2019 Performance – Income Statement items
Gross Earnings
9M 2019: N176.2bn9M 2018: N168.8bn
Basic Earnings Per Share
9M 2019: 513Kobo9M 2018: 573Kobo
Profit After Tax
9M 2019: N55.6bn9M 2018: N59.8bn
Credit Loss RatioCost to IncomeROE
+4% -10% -7%
-1.3
-0.02
9M 2018
9M 2019
%
Stanbic IBTC Presentation / page 10 /
56.8
70.5
FY 2018
9M 2019
%
Summary of Nine months 2019 Performance – Financial Position items
Customer Deposits
9M 2019: N687.9bnFY 2018: N807.7bn
Net Customer Loans & Advances
9M 2019: N537.5bnFY 2018: N432.7bn
CASA Ratio Gross NPL RatioROA
+10% -15% +24%
Total Asset
9M 2019: N1.833trnFY 2018: N1.664trn
3.9
2.7
FY 2018
9M 2019
%
4.5
4.3
FY 2018
9M 2019
%
Stanbic IBTC Presentation / page 11 /
Overview of income statement for 9M 2019 vs 9M 2018
87,888
(29,445)
79,974
4,136
(72,173)
70,380
(10,623)
59,757
Interest income Interest expense Non-interestrevenue
Credit impairmentcharges
Operating expenses Profit beforetaxation
Taxes Profit after taxation
9M 2018 (N’million)
91,038
(32,366)
81,939
90
(71,593)
69,108
(13,556)
55,552
Interest income Interest expense Non-interestrevenue
Credit impairmentcharges
Operating expenses Profit beforetaxation
Taxes Profit after taxation
9M 2019 (N’million)
Stanbic IBTC Presentation / page 12 /
Net Interest Income
❖ Net interest income grew marginally by 39bps to N58.7 billion (9M2018: N58.4 billion) though interest income was up by 4% to N91.0billion (9M 2018: N87.9 billion) while interest expense grew by 10%.
❖ Asset yield declined due to competitive asset pricing.
❖ Consequently, net interest margin declined as a result of liquiditysqueeze and reduced financial investment portfolio and increasedexcess cash reserve asset.
❖ Cost of funds declined year-on-year as we continue our deliberatedrive to replace expensive term deposits with cheaper and stableliabilities.
Interest Expense (N’million)
Interest Income (N’million)
Net Interest Income (N’million)
Drivers of net interest income (%)
62,676 61,185 89,684 87,888 91,038
9M 2015 9M 2016 9M 2017 9M 2018 9M 2019
29,747 22,096 26,737 29,445 32,366
9M 2015 9M 2016 9M 2017 9M 2018 9M 2019
32,929 39,089 62,947 58,443 58,672
9M 2015 9M 2016 9M 2017 9M 2018 9M 2019
4.6%
5.0%6.9%
5.4% 4.6%
5.8%
3.6% 3.8% 3.8% 3.5%
14.9%
12.0%
15.4%
12.7% 12.3%
9M 2015 9M 2016 9M 2017 9M 2018 9M 2019
NIMs Cost of fund Asset Yield
Stanbic IBTC Presentation / page 13 /
Non-Interest Revenue
❖ Non-interest revenue grew by 2% drivenby a 1% growth in net fees andcommission, 6% increase in tradingincome and 3% growth in other revenue.
❖ Electronic banking fees was up 82%year-on-year.
Break down of fees and commission income
Break down of non-interest revenue by type
9M 2015 9M 2016 9M 2017 9M 2018 9M 2019
2% 1% 1% 2% 2%
27% 23%31% 32% 33%
71% 76%67% 66% 65%
Other revenue Trading revenue Net Fees and commission
2,959 2,800 6,139
30,784
2,843 2,493 5,483
1,874 1,178 2,699 2,468 5,374 30,975 3,043 1,372 5,402 1,658 864
Accounttransaction fees
Card basedcommission
Brokerage andfinancial
advisory fees
Assetmanagement
fees
Custodytransaction fees
Electronicbanking
Foreigncurrency service
fees
Documentationand
administrationfees
Others
9M 2019 9M 2018
41,324 52,895 64,280 79,974 81,939
56%
58%
51%
58% 58%
46%
48%
50%
52%
54%
56%
58%
60%
0
20,000
40,000
60,000
80,000
100,000
9M 2015 9M 2016 9M 2017 9M 2018 9M 2019
Non-interest revenue % to total income
Stanbic IBTC Presentation / page 14 /
Income statement - credit impairment
❖Credit impairment charges were a write back of N90mn compared to N4.14bn in prior period. We continue to pursue recovery of previouslyimpaired assets.
❖Credit loss ratio was (0.02%) compared to (1.3%) in 9M 2018.
(12,489) (15,278) (20,334)
4,136 90 4.0
5.3
7.0
(1.3)
(0.02)
(1.5)
(0.5)
0.5
1.5
2.5
3.5
4.5
5.5
6.5
7.5
(25,000)
(20,000)
(15,000)
(10,000)
(5,000)
0
5,000
10,000
9M 2015 9M 2016 9M 2017 9M 2018 9M 2019
(Credit impairment charges)/ write-back Credit loss ratio
N’million %
Stanbic IBTC Presentation / page 15 /
Operating expenses and Taxation
❖Operating expenses declined by 1% year-on-year.
❖Staff cost declined by 2% year-on-year due to decline inshare-based compensation charges on the back of declinein the company share price.
❖Other operating expenses were flat year-on-year.
❖Consequently, Cost to income ratio improved to 50.9%from 52.1% recorded in prior year.
❖Effective tax rate increased to 20% from 15% in 9M 2018due to assessment of the Banking subsidiary using excessdividend tax basis.
46,397 51,018 61,243 72,173 71,593
62.5%55.5%
48.1% 52.1% 50.9%
0%
20%
40%
60%
80%
100%
-
20,000
40,000
60,000
80,000
9M 2015 9M 2016 9M 2017 9M 2018 9M 2019
Operating expenses Cost-to -income ratio
N'million
1,805 5,536 7,978 10,623 13,556
11.7%
21.6%
17.5%15%
20%
0%
5%
10%
15%
20%
25%
-
4,000
8,000
12,000
16,000
9M 2015 9M 2016 9M 2017 9M 2018 9M 2019
Taxation Effective tax rate
N’million
Stanbic IBTC Presentation / page 16 /
Total Assets
Return on assets declined due to lower earnings and increased assets.
N 'million
1,832,942
458,329
313,934
212,424154,359
537,482124,087
32,327
Total Assets Cash & loans tobank
Trading andderivative assets
Pledged assets Financialinvestments
Loans &advances tocustomers
Other assets Intangibleassets, property
& equipment
N’million
938 1,054 1,386 1,664 1,833
1.7%2.5%
3.8%
4.8%4.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
-
500
1,000
1,500
2,000
FY 2015 FY 2016 FY 2017 FY 2018 9M 2019
Total assets Return on assets
25% 30% 30% 28% 25%
17%24% 23% 24%
8%
38%34% 27% 26%
29%
4%2% 11% 5%
15%
15% 11% 10% 17% 22%
FY 2015 FY 2016 FY 2017 FY 2018 9M 2019
Cash & loans to banks Financial investments
Loans & advances to customers Trading assets
Other assets
Stanbic IBTC Presentation / page 17 /
9M 2019 FY 2018
Funding mix
Equity16%
Deposits from
customers38%
Deposits from banks
17%
Trading liabilities
5%
Other liabilities
13%
Borrowings5%
Debt securities
issued7% Equity
14%
Deposits from
customers49%Deposits
from banks10%
Trading liabilities
8%
Other liabilities
12%
Borrowings4%
Debt securities
issued4%
Stanbic IBTC Presentation / page 18 /
Contribution to loans and advances by product
❖Gross loans portfolio increased by 22%year-to-date amid some maturities.
❖ Installment sales, finance leases andmortgage loans declined as a result ofrepayments and write-offs during theperiod.
❖Lending via term loans and overdrafts tocustomers increased as we continue toprovide financing to our customers.
Loans and Advances
379.4 375.3 403.9 458.9 558.5 0
100
200
300
400
500
600
FY 2015 FY 2016 FY 2017 FY 2018 9M 2019
N’billion
458,946
(1,294) (1,668) 22,94079,562
558,486
Gross loansand
advances -FY 2018
Mortgagelending
Instalmentalsales andfinanceleases
Overdrafts Term loans Gross loansand
advances -9M 2019
9M 2019 FY 2018
LCY loans FCY loans Total loans LCY loans FCY loans Total loans
N’billion N’billion N’billion N ‘billion N ‘billion N ‘billion
Personal & Business Banking 163.4 35.3 198.7 139.4 40.4 179.8
Mortgage lending 4.5 - 4.5 5.6 - 5.6
Instalment sale & finance leases 6.6 0.72 7.3 7.9 0.8 8.7
Overdrafts 27.1 2.98 30.1 28.8 2.9 31.6
Term loans 125.2 31.6 156.8 97.2 36.8 134
Corporate & Investment Banking 168.4 191.4 359.8 104.3 174.9 279.1
Term loans 107.9 191.4 299.3 67.6 174.9 242.5
Overdrafts 59.7 0.01 59.7 35.5 - 35.5
Instalment sale and finance leases 0.83-
0.83 1.1 - 1.1
Total loans 331.8 226.7 558.5 243.7 215.3 459
Percentage 59% 41% 100% 53% 47% 100%
50.39% 48.22%51.75%
62.90%
Jun-18 Dec-18 Jun-19 Sept-19
Loan to funding ratio
Gross loans and advances
Stanbic IBTC Presentation / page 19 /
43%
15%
42%49%
16%
35%
Downstream
Servicing
Upstream
Loans and Advances by Sector
FY 2018 – Inner pie chart9M 2019 – Outer pie chart
8%2%
10%
11%
0.3%
10%
7%
36%
15%
1%
5%
6%
8%
10%
0.3%
8%
5%
29%
28%
1%Agriculture
Communications
Construction and realestate
Consumer credit
Finance & Insurance
General commerce
Government
Manufacturing
Oil & Gas
Transportation
Stanbic IBTC Presentation / page 20 /
Non-performing loans and NPL ratio (Gross)Non-performing loans ratio by sector (IFRS)
Non-performing loans by currency (N ’million) (IFRS)
Loan Performance
32,227 21,892 35,322 17,714 15,193
8.4%
5.8%
8.6%
3.9%
2.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
-
10,000
20,000
30,000
40,000
FY 2015 FY 2016 FY 2017 FY 2018 9M 2019
Gross non-performing loans NPL/ total loans
N’million 9M 2019 FY 2018
Sector% of Total
NPL NPL
ratio (%)
% of Total NPL
NPL ratio (%)
Agriculture 47.8% 23.9% 12.4% 5.9%
Communication 0.01% 0.003% - -
Construction and real estate
1.1% 0.4% 2.9% 1.2%
Consumer credit 24.9% 6.9% 44.9% 15.5%
General commerce
7.2% 2.6% 10.0% 3.8%
Government 6.0% 3.1% 9.4% 5.1%
Manufacturing 0.3% 0.03% 0.7% 0.1%
Oil & Gas Downstream
0.04% 0.01% 0.2% 0.1%
Oil & Gas Services 3.4% 2.2% 5.4% 9.1%
Transportation 9.2% 39.1% 14.1% 54.4%
Grand Total 100.0% 2.7% 100.0% 3.9%
9M 2019 % of total NPLs
FY 2018 % of total NPLsN'million N'million
Local currency 10,569 70% 15,037 85%
Foreign currency 4,624 30% 2,677 15%
Total NPLs 15,193 100% 17,714 100%
Stanbic IBTC Presentation / page 21 /
Customer deposits and CASA ratio Contribution to customer deposits by product
❖Customer deposits declinedby 15% to close at N687.9bnfrom N807.7bn in 2018 dueto release of expensive termand call deposits.
❖Term and call depositsdeclined by 41% and 45%respectively while currentand savings account balancesgrew by 4% and 16%respectively.
❖The deposit mix improved asCASA ratio grew to 70.5% asat 9M 2019 from 56.8% in FY2018.
FY 2018
LCY FCY TotalN ’billion N ‘billion N ‘billion
339.6 166.1 501.7
204.3 121.5 325.8
67.3 - 67.3
5.3 0.9 6.2
62.7 39.7 102.4
171.0 131.0 306.0
38.5 26.9 65.4
37.0 30.5 67.5
95.4 77.7 173.1
510.6 297.1 807.7
63% 37% 100%
Customer Deposits
N ‘million
493.5 561.0 753.6 807.7 687.9
43.7%
57.1%
49.2%56.8%
70.5%
0%
20%
40%
60%
80%
0
200
400
600
800
1,000
FY 2015 FY 2016 FY 2017 FY 2018 9M 2019Customer deposits CASA ratio
N’billion
807,692
15,032 (32,794) 11,102 (113,154)
Customerdeposits FY
2018
Currentaccounts
Call deposits Savingsaccounts
Termdeposits
Customerdeposits9M 2019
687,878
9M 2019
Deposit breakdown by business unit LCY FCY Total
N’billion N’billion N’billion
Personal & Business Banking 309.0 189.7 498.6
Current deposits 173.7 161.3 335.0
Savings deposits 78.4 - 78.4
Call deposits 6.3 4.5 10.8
Term deposits 50.5 23.9 74.4
Corporate & Investment Banking 124.2 65.0 189.2
Current deposits 42.5 28.7 71.2
Call deposits 27.7 2.4 30.1
Term deposits 54.0 33.9 88.0
Total deposits and current accounts 433.2 254.7 687.9
% of total deposits 63% 37% 100%
Stanbic IBTC Presentation / page 22 /
Balance sheet – Shareholder value Return on average equity
Net assets value per share and price-to-book ratio Market capitalisation
Capital and Shareholder Value
17.4% 18.6% 19.6% 21.3% 21.1%21.3% 22.8% 23.5% 24.7% 24.2%
FY 2015 FY 2016 FY 2017 FY 2018 9M 2019
Tier 1 capital adequacy Total capital adequacy
Statutory minimum
12.9%
18.9%
28.9%
34.5%
27.5%
FY 2015 FY 2016 FY 2017 FY 2018 9M 2019
Return on average equity
1,237 1,371 1,812 2,299 2,740
1.3 1.1
2.3
2.1
1.4
0.0
0.5
1.0
1.5
2.0
2.5
0
500
1,000
1,500
2,000
2,500
3,000
FY 2015 FY 2016 FY 2017 FY 2018 9M 2019
Net asset value per share (kobo) Price- to- book
Kobo
Times
165.3 150.0
417.1
491.0
398.0
0
100
200
300
400
500
600
FY 2015 FY 2016 FY 2017 FY 2018 9M 2019
N’billion
Business units results
PBB
Personal & Business Banking (“PBB”)
Stanbic IBTC Presentation / page 25 /
98.2
91.3
9M:18
9M:19
%
PBB Performance Highlights
Cost to Income Credit Loss RatioROE
+7%
0.4
0.6
FY 18
9M:19
%
+11%
Total Income
9M:19: N39.8bn9M:18: N35.8bn
1.3
2.4
9M:18
9M:19
%
>100%Profit After Tax
9M:19: N1.44bn9M:18: N529mn
+11%
Gross loans & Advances9M:19: N198.7bnFY18: N179.8bn
-1%
Customer Deposits9M:19: N498.6bnFY18: N501.7bn
NPL Ratio
9.0
7.2
FY18
9M:19
%
Stanbic IBTC Presentation / page 26 /
PBB Financial Analysis – 9M 2019
❖ Net interest income grew by 12% year-on-year on the backof increased asset book and lower level of expensivedeposits on the liability book.
❖ Non-interest revenue grew as transaction turnover grewyear-on-year across our banking channels. This is a reflectionof success achieved from our digital strategy which hasrecorded improved activities on our channels.
❖ In line with our discipline, provisions were made on somedelinquent loans which led to credit impairment charges ofN1.67bn as against a write back of N517mn in the priorperiod.
❖ Staff cost was flat year-on-year while operating expensesgrew by 6% YoY as a result of AMCON charges and depositinsurance premium.
❖ Loan book grew by 11% as we continue to support our clientbusiness while exploring opportunities to support thevarious sectors of the economy most especially the real andagricultural sectors.
❖ Deposit book inched down slightly YTD as we continue toreplace expensive deposits with cheaper deposits to reduceour cost of funds.
Performance highlights
Income statement9M 2019 Change 9M 2018
N’million % N’million
Net interest income 26,586 12 23,715
Non-interest revenue 13,214 9 12,123
Total income 39,800 11 35,838
Credit impairment charges (1,665) >(100) 517
Operating expenses (36,353) 3 (35,201)
Profit before tax 1,782 54 1,154
Balance sheet 9M 2019 FY 2018
Gross loans & advances 198,695 11 179,813
Deposit liabilities 498,640 (1) 501,689
Key selected ratios 9M 2019 9M 2018
Cost to income ratio % 91.3 98.2
CASA % 82.9 78.0
Credit loss ratio % 0.6 (0.4)
NPL/total loan ratio % 7.2 8.8
Stanbic IBTC Presentation / page 27 /
26,038,036 28,203,57829,537,523
32,304,388
31,857,214
36,081,792
42,335,931
Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19
Digital Transaction Trend Q-o-Q
1,641,711
1,633,975
1,665,040
Q1-19 Q2-19 Q3-19
Branch Transaction Trend Q-o-Q
Digital Channels
Digital banking continues to be a major focus for PBB. The digital transaction volume and value grew year-on-year by 31% and 87% respectively.
The bank continues to drive digital transactions as customers become more comfortable using our alternative channels. This is reflected in the 17.3% growth in Digital transactions between Q3 & Q2 2019.
YTD-2017
YTD-2018
YTD-2019
60,564,410
83,779,137
110,274,937
Digital Transaction Volume
YTD-2017
YTD-2018
YTD-2019
N1.3 Trillion
N2.3 Trillion
N4.3 Trillion
Digital Transaction Value
Stanbic IBTC Presentation / page 28 /
Digital Lending (EZ Cash)We have made progress with theInstant Cash Advance. This wouldcontinue to be a major focus forthe final quarter of 2019.
Trade OpportunitiesThe last quarter of the yearpresents a lot of opportunities forTrade.
Cards This remains a focus area in Q42019. The aim is to increasemonthly revenue on cards.
Virtual BankingThe launch of the Virtual Banking2.0 in Q4 2019 will enable usincrease scale and ramp upcustomer acquisition.
Cards
Trade
Opportunities
Virtual Banking
Digital Lending
(EZ Cash)
PBB– Moving forward Q4 2019
CIBCorporate & Investment
Banking (CIB)
Stanbic IBTC Presentation / page 30 /
39.5
36.2
9M:18
9M:19
%
CIB Performance Highlights
Cost to Income Credit Loss RatioROE
+7%
-1.3
-0.6
FY18
9M:19
%
-5%
Total Income
9M:19 : N64.0bn9M:18 : N67.0bn
51.0
36.4
9M:18
9M:19
%
-13%
Profit After Tax
9M:19 : N36.6bn9M:18 : N41.9bn
+29%
Gross loans & Advances9M:19: N359.8bnFY18: N279.1bn
-38%
Customer Deposits9M:19 : N189.2bnFY18: N306.0bn
NPL Ratio
0.6
0.2
FY18
9M:19
%
Stanbic IBTC Presentation / page 31 /
CIB Financial Analysis – 9M 2019
❖ Good performance from our capital markets,advisory, custody, FX trading and trade financebusinesses despite the challenging operatingenvironment. This led to a 2% growth in NIR.
❖ Competitive asset pricing impacted net interestincome.
❖ Credit impairment charges were a write back,similar to the prior period but the recovered sumwas lower.
❖ Cost-to-income ratio improved to 36.2% from39.5% in 9M 2018.
❖ Loan book growth was driven by opportunities interm loans and overdrafts. The asset book is ofgood quality with NPL ratio of 0.2%.
❖ Deposit book declined due to our drive to curtailcost of funds by releasing expensive term deposits.
Performance highlights
Income statement9M 2019 Change 9M 2018
N’million % N’million
Net interest income 27,077 (12) 30,900
Non-interest revenue 36,873 2 36,137
Total income 63,950 (5) 67,037
Credit impairment charges 1,725 (52) 3,606
Operating expenses (23,172) (13) (26,493)
Profit before tax 42,503 (4) 44,150
Balance sheet 9M 2019 FY 2018
Gross loans & advances 359,791 29 279,133
Deposit liabilities 189,238 (38) 306,003
Key selected ratios 9M 2019 9M 2018
Cost to income ratio % 36.2 39.5
NIR to total income % 57.7 53.9
Credit loss ratio % (0.6) (1.7)
NPL/total loan ratio % 0.2 2.1
Stanbic IBTC Presentation / page 32 /
Growing deposits with focus on transactional low cost deposits. Relentless focus on lowering cost of funding.
Growing quality loans and advances with focus on the more resilient sectors of the economy.
Focus on winning mandates in our capital markets businesses.
Growing our Trade Finance market share.
Growing market share in our foreign currency trading business.
CIB– Moving forward Q4 2019
1
4
2
3
5
Develop structured products in the Global Markets space to target foreign financial institution sector clients.
6
Stanbic IBTC Presentation / page 33 /
WEALTH
ASSET
MANAGEMENT
PENSION
MANAGERS
TRUSTEESINSURANCE
BROKERAGE
Wealth
Stanbic IBTC Presentation / page 34 /
29.5
32.7
9M:18
9M:19
%
Wealth Performance Highlights
Cost to IncomeROE
+7%
+4%
Total Income
9M:19: N36.9bn9M:18: N35.5bn
68.5
49.1
9M:18
9M:19
%
+1%
Profit After Tax
9M:19: N17.5bn9M:18: N17.3bn
+13%
Assets underManagement9M:19: N3.63trnFY18: N3.22trn
+1%
No. of RSAs
9M:19: 1.718mnFY18: 1.695mn
No. of Mutual Funds9M:19: 150,000
Stanbic IBTC Presentation / page 35 /
Wealth Financial Analysis – 9M 2019
❖Net interest income grew by 31% as the business continuesto invest its capital in financial and investment securities.
❖Non-interest revenue was flat year-on-year even with theeffect of regulatory induced fee rate cut. The NIR wasachieved on the back of AuM growth which neutralized theeffect of the fee rate cut.
❖Operating expenses grew by 15%, driven by increasedpension protection levy and marketing expenses.
❖Cost-to-income ratio deteriorated year-on-year but thebusiness will continue to strive for better efficiencies.
Performance highlights
Income statement9M 2019 Change 9M 2018
N’million % N’millionNet interest income 5,009 31 3,828 Non-interest revenue 31,852 0.4 31,714 Total income 36,861 4 35,542
Credit impairment 30 >100 13 Operating expenses (12,068) 15 (10,479)
Profit before tax 24,823 (1) 25,076
Balance sheet 9M 2019 FY 2018Assets under management (N'million) 3,627,448 13 3,221,574 Retirement savings accounts (Number)
1,718,092 1 1,695,861
Key selected ratios 9M 2018 9M 2018
Cost to income ratio % 32.7 29.5
Stanbic IBTC Presentation / page 36 /
Digitization
We will continue refiningour business model andaccelerate on deployingmore digital initiatives todrive operationalefficiency and improvedvalue to our clients.
Collaboration
Continue to leverage on theStanbic IBTC ecosystem andother stakeholders to deliveroptimum value proposition toour clients.
Employee Engagement
1
An important aspect of ourstrategic focus area is ourpeople. We will ensure ourworkforce is sufficientlyengaged to drive our digitaltransformation agenda as theycontinue to provide qualityand exceptional serviceexperience to our clients.
Market Share Growth
We will leverage our uniquesuite of products to growmarket share, deploy tailoredawareness campaign to appealto all segments of the marketfor brand acceptance andmarket share preservation.
Wealth – Moving forward Q4 2019
3 42
Outlook & Guidance for 2019
Stanbic IBTC Presentation / page 38 /
Outlook for Q4 2019
Banking Industry 2✓ Interest rates remain around 11% - 13% ✓ Stable foreign exchange rate✓ Heightened regulation in a bid to drive loan growth✓ Pressured NIMs✓ Relatively tight liquidity regime✓ Improved digital efficiency✓ Improvement in asset quality but risks still lingers
Stanbic IBTC3Areas of focus for 2019 financial year:✓ Cost efficiency✓ Improving risk asset quality✓ Loan growth✓ Growing low-cost deposits✓ Client service and improving customer experience✓ Digitization
Key risks to our results are:✓ Low-cost deposit growth✓ Competitive asset pricing✓ Regulatory interventions
Nigeria’s Economic & Political environment1✓ Moderate economic growth✓ Stable oil production levels and relative peace in the
Niger Delta Region✓ Stable oil price around the $60/bbl levels✓ Fairly contentious political environment✓ Average headline inflation of c.11%✓ Accretion to external reserves
Stanbic IBTC Presentation / page 39 /
2019 Guidance Vs 9M 2019 Actual
2018 Actual 9M 2019 Actual 2019 Guidance
19%AuM Growth 13% 15% - 20%
34.5%Return on Equity 27.5% 25% - 30%
52.9%Cost to Income 50.9% 50% - 55%
5.2%Net Interest Margin 4.6% 4.0 - 5.0%
(0.7%)Cost of Risk (0.02%) <3.0%
57%CASA Ratio 70.5% >60% *
3.9%NPL Ratio <5%
7%Deposit Growth (15%) (10%) – (15%)
16%Loan Growth 24% 20% - 25%*
2.7%
* Revised
Stanbic IBTC Presentation / page 40 /
Appendix
Stanbic IBTC Presentation / page 41 /
1989 2001 2005 2007 2012
Incorporated as Investment Banking & Trust Company Limited and commenced operations as a Merchant bank
Obtained Universal Banking Licence in Nigeria
Listed on The NSE on 25 April 2005
Merged with Chartered Bank & Regent Bank and changed name to IBTC Chartered Bank PLC
Merged with Stanbic Nigeria and Standard Bank gained control of the combined entity in a US$1bn transaction
Holding Company Structure was adopted.
Stanbic IBTC Trustees Ltd
Stanbic IBTC Nominees Nigeria Ltd
Stanbic IBTCVentures Ltd
Stanbic IBTC Bureau De Change Ltd
99.9%
Stanbic IBTCBank PLC
99.9%
Stanbic IBTC Holdings PLC
88.24%99.9%99.9% 99.9% 99.9%
99.9% 99.9%99.9%
Stanbic IBTC Pension Managers Ltd
Stanbic IBTC Investments Ltd
Stanbic IBTC Asset Management Ltd
Stanbic IBTC Capital Ltd
Stanbic IBTC Stockbrokers Ltd
About Stanbic IBTC Holdings PLC
Stanbic IBTC Insurance Brokers Limited
75%
2019
Standard Bank increased its stake in Stanbic IBTC to 65.90% in 2019
About Stanbic IBTC Holdings PLC
Stanbic IBTC Presentation / page 42 /
Group income statement
Group income statementChange%
9M 2019Nmillion
9M 2018Nmillion
Gross earnings 4 176,157 168,801
Net interest income 0 58,672 58,443 Interest income 4 91,038 87,888 Interest expense 10 (32,366) (29,445)
Non-interest revenue 2 81,939 79,974 Net fees and commission revenue 1 53,373 52,916
Fees and commission revenue 5 56,553 53,855 Fees and commission expense >100 (3,180) (939)
Trading revenue 6 27,188 25,720 Other revenue 3 1,378 1,338
Total income 2 140,611 138,417 Credit impairment charges (98) 90 4,136 Income after credit impairment charges (1) 140,701 142,553 Operating expenses (1) (71,593) (72,173)Staff costs (2) (30,573) (31,337)Other operating expenses 0 (41,020) (40,836)
Profit before taxation (2) 69,108 70,380 Direct taxation 28 (13,556) (10,623)Profit for the period (7) 55,552 59,757
Stanbic IBTC Presentation / page 43 /
Group quarterly income statement
Group quarterly income statement
Q1 2019 Q2 2019 Q3 2019 9M 2019N’million N’million N’million N’million
Gross income 58,693 58,681 58,783 176,157 Net interest income 20,185 19,125 19,362 58,672
Interest income 31,142 29,642 30,254 91,038 Interest expense (10,957) (10,517) (10,892) (32,366)
Non-interest revenue 27,004 27,848 27,087 81,939
Net fee and commission revenue 16,791 19,178 17,404 53,373 Fee and commission revenue 17,338 20,369 18,846 56,553 Fee and commission expense (547) (1,191) (1,442) (3,180)
Trading revenue 9,798 7,805 9,585 27,188 Other revenue 415 865 98 1,378
Total income 47,189 46,973 46,449 140,611 Credit impairment charges 1,391 (834) (467) 90 Income after credit impairment charges 48,580 46,139 45,982 140,701 Operating expenses (25,071) (24,998) (21,524) (71,593)
Staff costs (9,170) (10,715) (10,688) (30,573)Other operating expenses (15,901) (14,283) (10,836) (41,020)
Profit before taxation 23,509 21,141 24,458 69,108 Taxation (4,359) (4,046) (5,151) (13,556)Profit for the period 19,150 17,095 19,307 55,552
Stanbic IBTC Presentation / page 44 /
Group statement of financial position
YTD Change%
9M 2019N ‘million
FY 2018N ‘million
YTD Change
%9M 2019Nmillion
FY 2018Nmillion
Assets
Cash and cash equivalents (1) 453,358 455,773
Trading assets >100 282,800 84,351
Pledged assets 49 212,424 142,543
Derivative assets 3 31,134 30,286
Financial investments (61) 154,359 400,000
Asset held for sale - -
Loans and advances 23 542,453 441,261 Loans and advances to banks (42) 4,971 8,548
Loans and advances to customers 24 537,482 432,713
Other assets 44 111,838 77,787
Deferred tax assets (3) 8,870 9,181
Right of Use assets 3,379 -
Property and equipment 25 27,055 21,652
Intangible assets >100 5,272 827
Total assets 10 1,832,942 1,663,661
Equity and liabilitiesEquity 22 292,210 239,667 Equity attributable to ordinary shareholders
22 286,949 235,406
Ordinary share capital 2 5,237 5,120 Ordinary share premium 15 87,067 76,030 Reserves 26 194,645 154,256 Non-controlling interest 23 5,261 4,261
Liabilities 8 1,540,732 1,423,994Trading liabilities (31) 86,610 125,684 Derivative liabilities (17) 3,464 4,152 Deposit and current accounts 4 1,002,492 967,964
Deposits from banks 96 314,614 160,272 Deposits from customers (15) 687,878 807,692
Other borrowings 34 93,709 69,918 Current and deferred tax liabilities 5 15,789 15,036 Provisions 10,581 13,452 Debt securities issued >100 124,130 60,595 Other liabilities 22 203,957 167,193
Total equity and liabilities 10 1,832,942 1,663,661
Stanbic IBTC Presentation / page 45 /
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