Half year ended 30 June 2016 Investors & Analysts Presentation - PowerPoint PPT Presentation

Half year ended 30 June 2016 Investors & Analysts Presentation

DISCLAIMER This presentation is based on FBN Holdings Plc‟s („FBNH‟ or „ FBNHoldings ‟ or the „Group‟) unaudited IFRS results for the six months ended 30 June, 2016. The Group's financial statements have been prepared using the accounts of the subsidiaries and businesses within FBNHoldings. FBNHoldings has obtained some information from sources it believes to be credible. Although FBNHoldings has taken all reasonable care to ensure that all information herein is accurate and correct, FBNHoldings makes no representation or warranty, express or implied, as to the accuracy, correctness or completeness of the information. In addition, some of the information in this presentation may be condensed or incomplete, and this presentation may not contain all material information in respect of FBNHoldings. This presentation contains forward-looking statements which reflect management's expectations regarding the Group‟s future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expect”, “intend”, “estimate”, “project”, “target”, “risk”, “goal” and similar terms and phrases have been used to identify the forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to the Group‟s management. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. FBNHoldings cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain risks or factors, reference should be made to the Group‟s continuous disclosure materials filed from time to time with the Nigerian Stock Exchange and other relevant regulatory authorities. The Group disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2

Outline Pg 5 Operating Environment FBNHoldings at a Glance Pg 7 - 10 Pg 12 – 22 Financial Review Strategic Review Pg 24 – 25 Appendix Pg 28 3

Operating environment 4

Operating & regulatory environment OPERATING ENVIRONMENT OPERATING ENVIRONMENT FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX • Fitch announced the downgrade of Nigeria’s long-term foreign currency Issuer Default Rating (IDR) to ‘B+’ from ‘BB - ’ and long-term local currency IDR to ‘BB - ’ from ‘BB’ on the back of which FBNHoldings was downgraded • Removal of subsidy on some petroleum products; average crude oil production down to 1.4mbpd in June 2016 Operating • External reserves declined from $29.07bn in December 2015 to $26.36bn in June 2016 Environment • Rise in inflation to 16.5%% in H1 2016 (H1 2015: 9.2%) reflecting the impact of fuel price hike and scarcity as well as foreign exchange shortages on domestic prices • IMF suggests that growth in the second half of the year may not be rapid enough to counter the impact of the macro-economic headwinds in Nigeria • Liberalisation of the foreign exchange market by the Central Bank of Nigeria (CBN) giving rise to a c.40% devaluation of the Naira • Following the adoption of the new flexible exchange rate policy of the (CBN), the apex bank formally launched Nigeria’s “Naira -Settled OTC FX Futures Market” • All macroeconomic indicators were retained at the last MPC meeting in May 2016 (MPR: 12%, CRR: 22.5%, Regulatory Liquidity ratio: 30% and asymmetric window at +200 and -500 basis points) Environment • CBN deadline for the implementation of higher capital requirements of 16% for systemically important banks (SIBs) has been extended to July 2017 5

FBNHoldings at a glance 6

Key highlights OPERATING ENVIRONMENT FBNH AT A GLANCE FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Loans & advances Total assets Customer deposits Gross loans/deposits (net) FY15:N4,166.2bn FY15:N2,970.9bn FY15:65.9% FY15:N1,817.3bn H116:N4,804.2bn H116:N3,097.1bn H116:75.2% H116:N2,111.8bn Net interest income Operating expenses Gross earnings Profit after tax H115:N271.3bn H115:N132.7bn H115:N119.2bn H115:N40.1bn H116:N267.9bn H116:N126.1bn H116:N104.3bn H116:N35.9bn NPL ratio Net interest margin CAR 2 (Basel 2) ROAE H115:4.1% H115:7.8% H115:15.8% H115:14.8% H116:22.8% H116:7.2% H116:15.4% H116:12.0% Active customer Business locations 3 ATM 1 Employees accounts 1 H115:852 H115:2,656 H115:9,293 H115:10.3mn H116:863 H116:2,683 H116:9,347 H116:11.9mn 1 For FirstBank (Nigeria) 2 CAR For FirstBank (Nigeria), excludes H1 profits; Including H1 profits, CAR is 16.7% (H12015: 17.6%); FBN Merchant Bank’s CAR for H12016: 27.9%; 3 Business locations includes 615 local branches, 64 QSPs, 7 67 agencies/cash centres for FirstBank (Nigeria) and 117 (local and international) subsidiary locations

Global footprint: building a stronger, well-diversified financial services group OPERATING ENVIRONMENT FBNH AT A GLANCE FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Nigeria Ghana • Name FBN Holdings Plc. • Name FBNBank Ghana • Type Licensed financial holding company • Type Licensed Bank • Established 2012 (formerly First Bank of Nigeria Plc. • Established 1996 Established 1894) • Products / Services – Commercial Banking • Products / Services – Commercial Banking, Merchant Banking & Asset Management, Insurance Nigeria Guinea • • Name First Bank of Nigeria Ltd. (formerly First Bank of Name FBNBank Guinea Nigeria Plc.) • Type Licensed Bank • Type Licensed Bank • Established 1996 • Established 2012 • Products / Services – Commercial Banking • Products / Services – Commercial Banking UK The Gambia • Name FBNBank UK Ltd. • Name FBNBank The Gambia • Type Licensed Bank • Type Licensed Bank • Established 2002 • Established 2004 • Products / Services – International Banking and Trade • Products / Services – Commercial Banking Services Sierra Leone France • • Name FBNBank Sierra Leone Name FBNBank UK Ltd. • • Type Licensed Bank Type Bank branch • Established 2004 • Established 2008 • Products / Services – Commercial Banking • Products / Services – Commercial Banking, International Banking Representative Offices • Name FBNBank South Africa (2004) Democratic Republic of Congo Senegal • Name FBNBank China (2009) • Name FBNBank DRC • Name FBNBank Senegal • Name FBNBank UAE (2011) • Type Licensed Bank • Type Licensed Bank • Products / Services – Banking services • Established 1994 • Established 2014 • Products / Services – Commercial Banking • Products / Services – Commercial Banking 8

FBNHoldings – our main operating companies OPERATING ENVIRONMENT FBNH AT A GLANCE FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX FBN Holdings Plc 1 Investment Banking and Asset Insurance Commercial Merchant Banking & Insurance Management Banking Asset Management 2 Provides Merchant Banking, Financial Advisory, Offers insurance brokerage and life Offers commercial banking services to Securities Trading, Asset Management, Private assurance and non-life services to individuals and businesses. Operates Equity & Trustee Services to institutional and customers nationally and internationally individual clients First Bank of Nigeria Ltd FBN Merchant Bank Ltd FBN Insurance Ltd FBNBank (UK) Ltd FBN Capital Ltd FBN General Insurance Ltd FBNBank DRC Ltd FBN Trustees Ltd FBN Insurance Brokers Ltd FBNBank Ghana Ltd FBN Capital Asset Management Ltd FBNBank The Gambia Ltd FBN Funds Ltd FBNBank Guinea Ltd FBN Securities Ltd FBNBank Sierra Leone Ltd FBNBank Senegal Ltd First Pension Custodian Ltd FBN Mortgages Ltd 3 1 Other Financial Services is not classified as one of the main operating companies 2 Following the acquisition of a Merchant Banking License in the latter part of 2015, the Investment Banking and Asset Management business (IBAM) is now 9 the Merchant Banking & Asset Management Business (MBAM) 3 In the process of being divested

FBNHoldings ‟ contribution by business groups OPERATING ENVIRONMENT FBNH AT A GLANCE FBNH AT A GLANCE FINANCIAL REVIEW STRATEGIC REVIEW APPENDIX Commercial Banking Gross Earnings H1 15 [N248.3bn] H116 [N243.9bn] ∆ -1.8% Profit Before Tax H115 [N47.4bn] H116 [N36.0bn] ∆ -24.0% Merchant Banking and Asset Management Gross Earnings H115 [N18.2bn] H116 [N18.7bn] ∆ 2.4% Profit Before Tax H115 [N5.8bn] H116 [N9.9bn] ∆ 69.5% Insurance Gross Earnings H115 [N4.0bn] H116 [N5.0bn] ∆ 24.3% Profit Before Tax H115 [N1.1bn] H116 [N1.0bn] ∆ -8.5% *Contribution of the three major business groups to FBNHoldings will not add up to 100% due to the other financial services, which constitutes 0.2% of Total Assets 10

Financial review 11