stanbic ibtc holdings plc - the vault...stanbic ibtc holdings plc nine months 2019 results...

Stanbic IBTC Presentation / page 1 /

Stanbic IBTC Holdings PLCNine months 2019 Results Presentation


Table of Content

Business units results

Page 8Financial review - Nine months 2019

Page 3Background and operating environment

Appendix

Outlook and guidance for Q4 2019

3

1

2

4

5

Page 37

Page 40

3

Background and the operating environment


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: 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


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


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


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

%


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

%


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)


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


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


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 %


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


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


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%


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


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


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%


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%


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”)


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

%


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


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


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)


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

%


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.



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



NIR to total income % 57.7 53.9

Credit loss ratio % (0.6) (1.7)

NPL/total loan ratio % 0.2 2.1


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


WEALTH

ASSET

MANAGEMENT

PENSION

MANAGERS

TRUSTEESINSURANCE

BROKERAGE

Wealth


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


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.



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




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


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


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


Appendix


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


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


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


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


If you received this document in error, please immediately return the document and other related documents to Standard Bank Group / Stanbic IBTC Holdings PLC.

On receipt of this document, you agree to be bound and are deemed to understand that:

This presentation is provided to you for information purposes only on the understanding that such information is strictly confidential. This presentation must not bedelivered or its contents disclosed to anyone other than the entity (including its employees) to which it is provided and must not be used or reproduced, in whole or part,for any purpose other than for information.

This presentation is intended to be a commercial communication and is not to be construed as a recommendation or the constitution or solicitation of an offer for the saleand purchase of any financial product, service, investment or security. The information, investments and/or strategies discussed in this presentation may not be suitable forall investors and where you have any concerns you should approach an investment advisor.

We do not accept liability for any loss (direct or consequential) arising from use of this presentation. You must not rely on any communication (written or oral) from us asinvestment advice, a recommendation to enter into a transaction (which includes the information and explanations related to the terms and conditions of a transaction) ordeem it to be an assurance or guarantee as to the expected results of a transaction. Investments discussed in this presentation may fluctuate in price or value over time andpast performance is not indicative of future results. While we have taken care in preparing this presentation, we give no representation, warranty or undertaking andaccept no responsibility or liability as to the accuracy or completeness of the information set out in this presentation. This presentation does not represent an offer offunding and any facility to be granted in terms of this presentation is subject to us obtaining the requisite internal and external approvals.

Our duties and responsibilities do not include tax advisory, legal, regulatory accounting or other specialist or technical advice or services. You must procure and rely onindependent assessments and investigations into all matters contemplated in this presentation.

© 2019 Standard Bank Group / Stanbic IBTC Holding PLC. All rights reserved.

Disclaimer

stanbic ibtc holdings plc - the vault...stanbic ibtc holdings plc nine months 2019 results...

Documents