STANBIC IBTC HOLDINGS PLCFY 2019 FINANCIAL RESULTS PRESENTATION
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 2 /
Page 6
Page 20
Page 26
Page 30
Financial review – FY 2019
➢ Personal & Business Banking
➢ Corporate & Investment Banking
➢ Wealth
Page 3Background and the operating environment
Appendix
Outlook and Guidance
1
2
4
Page 34
Page 38
3
TABLE OF CONTENT
BACKGROUND AND THE OPERATING ENVIRONMENT
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 4 /
We measure our progress using five strategic value drivers
Missionthe reason we exist
Visionwhat we aspire to be
In executing our group strategy our key focus areas are
DigitizationLeverage our digital platforms
IntegrationDeliver Stanbic IBTC Group
Client centricityDeliver exceptional client experiences
SEE = Social, economic and environmental
STRATEGIC FOCUS IS UNCHANGED
Committed to solutions that drive your progress.
To be the leading end-to-end financial solutions provider in Nigeria through innovative and customer focused people.
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 5 /
Reserves, Brent Crude Oil Price & Crude Oil Production
Inflation (%)
Interest Rates
Exchange Rate Movement
❖Growth in the Nigerian economy remains moderate, stillaround the 2% level as ICT sector maintains strong growth.
❖The country’s foreign reserves dropped from a high of$45bn in June 2019 to end the year at $38.6bn owing topersistent balance of payment pressures.
❖Currency remained largely stable for most of the year;closing the year at N364.7/$.
❖The Central Bank of Nigeria (“CBN”) cut the benchmarkmonetary policy rate by 50bps in March 2019 as part of itsefforts in driving private sector credit growth.Furthermore, the CBN instituted a 65% minimum loan todeposit ratio for banks while also restricting individualsand local companies including non-bank financialinstitutions such as pension fund administrators and assetmanagers from trading in Open Market Operations(“OMO”) bills.
❖Headline inflation moderated for most of the year but theborder closures towards the end of year exerted upwardpressure. Headline inflation moderated to an average of11.4% from 12.1% average recorded in 2018. This hassince spiked to 12.13% in January 2020.
❖The Nigerian stock market was largely bearish during theyear, with the All Share Index (ASI) recording a negativereturn of 14.6%. The listing of two major telecomcompanies improved the market’s depth.
Source: IMF/NBS/CBN/BMI/OPEC
MACRO-ECONOMIC AND OPERATING ENVIRONMENT
0%
5%
10%
15%
20%
25%
30%
Average inter-bank call rate OMO Tbills - short term
OMO Tbills - medium term OMO Tbills - long term
Bond - 3 year
11.37
11.31
11.25
11.37
11.40
11.22
11.08
11.02
11.24 11.61
11.85
11.98
12.13
1.65
1.7
1.75
1.8
1.85
1.9
-
20
40
60
80
Reserves (US$ billions)
Brent Crude oil (US$).Month end price
Crude oil production (million bpd)
250
300
350
400
450
500
550
Jan
-17
Feb
-17
Mar
-17
Ap
r-1
7M
ay-1
7Ju
n-1
7Ju
l-1
7A
ug-
17
Sep
-17
Oct
-17
No
v-1
7D
ec-1
7Ja
n-1
8Fe
b-1
8M
ar-1
8A
pr-
18
May
-18
Jun
-18
Jul-
18
Au
g-1
8Se
p-1
8O
ct-1
8N
ov-
18
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9M
ay-1
9Ju
n-1
9Ju
l-1
9A
ug-
19
Sep
-19
Oct
-19
No
v-1
9D
ec-1
9
NG
N /
USD
rat
e
CBN Parallel market NAFEX I&E FX Window
US$ million
FINANCIAL REVIEW FY 2019
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 7 /
FY19: N233.8bn
FY18: N222.4bn
FY19: 692 kobo
FY18: 704 kobo
FY19: N75.0bn
FY18: N74.4bn
Gross Earnings Earnings Per Share
Profit After Tax
ROE Cost to Income Credit Loss Ratio
FY19: 27.3%
FY18: 34.5%
FY19: 50.4%
FY18: 52.9%
FY19: 0.2%
FY18: -0.7%
SUMMARY OF FY 2019 PERFORMANCE – INCOME STATEMENT
+5% -2% +1%
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 8 /
FY19: N1.876trn
FY18: N1.664trn
FY19: N637.8bn
FY18: N807.7bn
FY19: N532.1bn
FY18: N432.7bn
Total AssetsCustomer Deposits
Net Customer Loans & Advances
ROA CASA Ratio Gross NPL Ratio
FY19: 4.2%
FY18: 4.8%
FY19: 71.1%
FY18: 56.8%
FY19: 3.9%
FY18: 3.9%
SUMMARY OF FY 2019 PERFORMANCE – FINANCIAL POSITION ITEMS
+13% -21% +23%
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 9 /
OVERVIEW OF INCOME STATEMENT FOR FY 2019 VS FY 2018
120,412
(42,581)
108,755
(1,632)
(94,029)
90,925 (15,890)75,035
Interest income Interest expense Non-interest revenue Credit impairment charges Operating expenses Profit before taxation Taxes Profit after taxation
FY 2019 N ’million
118,382
(40,173)
102,604
2,940
(95,601)
88,152
(13,712 )
74,440
Interest income Interest expense Non-interest revenue Credit impairment charges Operating expenses Profit before taxation Taxes Profit after taxation
FY 2018 N ’million
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 10 /
NET INTEREST INCOME
❖ Net interest income was flat year-on-year though interestincome grew by 2% to N120.4 billion (FY 2018: N118.4 billion)but the growth was not sufficient to cover the 6% growth ininterest expense. Hence, the flat NII.
❖ Net interest margin declined as a result of faster growth intotal assets compared to NII growth.
❖ Cost of funds declined year-on-year as we continue the driveto replace expensive term deposit with cheaper depositliabilities.
Interest Expense
Interest Income
13.0 13.7
17.7
13.7
11.6
5.8
4.1 4.7 4.0 3.9
4.7
5.9 6.9
5.2 4.5
2015 2016 2017 2018 2019
Asset yield Cost of funds Net interest margin
82,686 87,467 122,911 118,382 120,412
2015 2016 2017 2018 2019
38,826 29,608 39,324 40,173 42,581
2015 2016 2017 2018 2019
43,860 57,859 83,587 78,209 77,831
2015 2016 2017 2018 2019
Net Interest income
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 11 /
NON-INTEREST REVENUE
❖ Non-interest revenuegrew by 6% drivenby a 16% increase intrading income and5% growth in feesand commission.
Break down of fees and commission income
Break down of non-interest income by type
2015 2016 2017 2018 2019
1% 1% 1% 1% 2%
27%22%
33% 31% 33%
72%76%
66% 68% 65%
Other revenue Trading revenue Net fees and commisions income
4,164 3,792 7,349
42,358
3,775 3,394 6,529
2,139 1,534 3,530 3,459 6,624 41,154 3,826 2,062 7,325 1,906 1,333
Accounttransaction fees
Card basedcommission
Brokerage andfinancial advisory
fees
Assetmanagement fees
Custodytransaction fees
Electronic banking Foreign currencyservice fees
Documentationand
administrationfees
Other
2019 2018
56,788 68,194 89,182 102,604 108,755
0.91
0.99 1.04
1.07 1.16
0.60
0.70
0.80
0.90
1.00
1.10
1.20
-
20,000
40,000
60,000
80,000
100,000
120,000
2015 2016 2017 2018 2019
Non-interest revenue NIR to OPEX ratio
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 12 /
INCOME STATEMENT - CREDIT IMPAIRMENT
❖Credit impairment was acharge of N1.6bncompared to a write backof N2.9bn in FY 2018 aswe continue to maintain aquality asset book.
❖Credit loss ratio was 0.2%for 2019.
14,931 19,803 25,577
(2,940)1,632
3.8
5.2
6.6
-0.7
0.2
-1.5
-0.5
0.5
1.5
2.5
3.5
4.5
5.5
6.5
7.5
(5,000)
-
5,000
10,000
15,000
20,000
25,000
30,000
2015 2016 2017 2018 2019
Impairment charges on loans and advances Credit loss ratio
Nmillion%
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 13 /
OPERATING EXPENSES AND TAXATION
❖Operating expenses declined by 2% year-on-year.
❖Staff cost declined by 6% due to decline inprovisioning for shared backed incentives.
❖Other operating expenses increased by 2% mainlyas a result of growth in information technologycost, AMCON charges and deposit insurancepremium on customer deposits.
❖Cost-to-income ratio improved to 50.4% from52.9% recorded in prior year.
❖Effective tax rate increased to 17.5% from 15.6%in FY 2018 on the back of the change in the basisof tax computation for the banking subsidiary.
62,066 69,041 86,026 95,601 94,029
61.7%
54.8% 49.8% 52.9%50.4%
0%
20%
40%
60%
80%
100%
-
20,000
40,000
60,000
80,000
100,000
120,000
2015 2016 2017 2018 2019
Operating expenses (N'm) Cost-to -income ratio
Nmillion
4,760 8,689 12,785 13,712 15,890
20.1%
23.4%20.9%
15.6%17.5%
0%
5%
10%
15%
20%
25%
-
4,000
8,000
12,000
16,000
2015 2016 2017 2018 2019
Taxation Effective tax rate
Nmillion
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 14 /
TOTAL ASSETS
1,876,456
459,442
281,780231,972
155,330
532,124 179,58136,227
Total Assets Cash & loans tobanks
Trading andderivative assets
Pledged assets Financial investments Loans & advances tocustomers
Other assets Intangible assets,property &equipment
N’million
937.6 1,053.5 1,386.4 1,663.7 1,876.5
1.7%2.5%
3.8%
4.8%
4.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
-
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
1,800.0
2,000.0
2015 2016 2017 2018 2019
Total Assets Return on assets
25% 30% 30% 28% 24%
9% 4% 4% 10% 14%4% 2%
11% 5%13%17% 24%
23% 24% 8%
38% 34%27% 26%
28%
3% 5% 4% 5% 10%3% 2% 2% 1% 2%
2015 2016 2017 2018 2019Intangible assets, property & equipment Other assets
Loans & advances to customers Financial investments
Trading assets Pledged & derivative assets
Cash & loans to banks
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 15 /
GROSS LOANS AND ADVANCES
2019LCY loans FCY loans Total loans N ‘billion N ‘billion N ‘billion
Personal & Business Banking 162.5 36.3 198.8 Mortgage 4.5 - 4.5 Instalment sale & finance leases 7.4 0.7 8.1 Overdrafts 26.9 3.1 30.0 Term loans 123.8 32.5 156.3 Corporate & Investment Banking 145.0 212.7 357.6 Term loans 121.6 212.6 334.2 Overdrafts 22.6 0.0 22.6
Instalment sale and finance lease 0.8 - 0.8 Total loans 307.5 248.9 556.4 Percentage (%) 55% 45% 100%
2018LCY loans FCY loans Total loans N ‘billion N ‘billion N ‘billion
139.4 40.4 179.8 5.6 - 5.6 7.9 0.8 8.7
28.8 2.9 31.6 97.2 36.8 134.0
104.3 174.9 279.1 67.6 174.9 242.5 35.5 - 35.5
1.1 - 1.1 243.7 215.3 459.0
53% 47% 100%
❖PBB and CIB loan books grew by 11%and 28% respectively.
❖LCY book grew by 26% and FCY bookgrew by 16%.
❖ Gross loans portfolio grew by 21%year-on-year as we continue tosupport our clients’ businesses andaspirations.
❖ Installment sales, overdraft, financeleases and mortgage loans declined asa result of maturities in the year.
❖ Increase in term loans is in line withour objective to grow stable andquality assets.
Gross loans and advances
379.4 375.3 403.9 458.9 556.4
2015 2016 2017 2018 2019
N’billion
458,946
(1,313) (991) (14,294) 114,036
556,384
Gross loansand advances
- FY 2018
Mortgagelending
Installmentsales and
finance leases
Overdrafts Term loans Gross loansand advances
- FY 2019
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 16 /
LOANS AND ADVANCES BY SECTOR
Agriculture8%
Construction and real estate10%
Consumer credit11%
Finance & Insurance
0.3%
General commerce
10%
Government7%
Manufacturing36%
Oil & Gas Service
2%
Oil & gas downstream
7%
Oil & gas Upstream
6%
Transportation & communication
3%
FY 2018Agriculture
6%Construction and
real estate8%
Consumer credit10% Finance & Insurance
1%General commerce
8%
Government6%
Manufacturing28%
Oil & Gas Service5%
Oil & gas downstream
10%
Oil & gas Upstream 14%
Transportation & communication
4%
FY 2019
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 17 /
LOAN PERFORMANCE
2019% of total
NPLs 2018% of total
NPLs
Local currency 15,343 71% 15,037 85%
Foreign currency 6,251 29% 2,677 15%
Total NPLs 21,594 100% 17,714 100%
2019 2018
Sector% of Total
NPL NPL ratio
(%)% of Total
NPL NPL ratio
(%)
Agriculture 41.0% 28.2% 12.4% 5.9%Construction and real estate 15.9% 7.7% 2.9% 1.2%
Consumer credit 17.8% 6.8% 44.9% 15.5%
General commerce 5.6% 2.8% 10.0% 3.8%
Government 0.4% 0.3% 9.4% 5.1%
Manufacturing 0.3% 0.0% 0.7% 0.1%
Oil & gas services 3.9% 3.0% 5.4% 9.1%
Oil Downstream 0.0% 0.0% 0.2% 0.1%
Transportation & communication 15.1% 13.0% 14.1% 19.6%
Grand Total 100.0% 3.9% 100.0% 3.9%
32.2 21.9 35.3 17.7 21.6
8.4%
5.8%
8.6%
3.9% 3.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
-
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2015 2016 2017 2018 2019
Gross non-performing loans NPL/ total loans
Nbillion
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 18 /
CUSTOMER DEPOSITS
2018LCY FCY Total
N ’billion N ‘billion N ‘billion
339.6 166.1 501.7204.3 121.5 325.8
67.3 0.0 67.3
5.3 0.9 6.2
62.7 39.7 102.4
171.0 131.0 306.038.5 26.9 65.437.0 30.5 67.595.4 77.7 173.1
510.6 297.1 807.763% 37% 100%
❖ Expensive term depositswere released.
❖ CASA ratio improved from56.8% in 2018 to 71.1% in2019.
2019
LCY FCY TotalNmillion Nmillion Nmillion
Personal & Business Banking 302.4 167.5 470.0 Current Accounts 163.3 143.4 306.8
Savings Accounts 87.4 - 87.4
Call Deposits 4.6 2.3 6.9
Term Deposits 47.1 21.8 68.9 Corporate & Investment Banking 96.5 71.4 167.9
Current accounts 41.4 17.9 59.3 Call deposits 21.4 2.2 23.6 Term deposits 33.7 51.3 85.0
Total deposits 398.9 238.9 637.8 63% 37% 100%
493.5 561.0 753.6 807.7 637.8
44%
57%49%
56.8%
71.1%
20%
30%
40%
50%
60%
70%
80%
0
200
400
600
800
2015 2016 2017 2018 2019
Deposit liabilities CASA mix
Nbillion
637,840 807,692
(25,164)(43,198) 20,061 (121,551)
Customerdeposits FY
2018
Currentaccounts
Call deposits Savingsaccounts
Term deposits Customerdeposits FY
2019
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 19 /
CAPITAL AND SHAREHOLDERS’ FUND
Shareholders’ Equity
17.4%18.6% 19.6%
21.3% 21.9%21.3%22.8% 23.5%
24.7% 24.6%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
2015 2016 2017 2018 2019
Tier 1 capital adequacy Total capital adequacy Statutory minimum
12.9%
18.9%
28.9%
34.5%
27.3%
2015 2016 2017 2018 2019Return on Equity
123.7 137.1
182.1
235.4
296.3
2015 2016 2017 2018 2019
N’billion
1,237 1,371 1,812 2,299 2,821
1.3 1.1
2.3 2.1
1.5
0.0
0.5
1.0
1.5
2.0
2.5
0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
2015 2016 2017 2018 2019
Net asset value per share Price- to- book
kobo Times
BANKING (PBB)PERSONAL & BUSINESS
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 21 /
PBB PERFORMANCE HIGHLIGHTS
Total Income
Profit After Tax
Gross Loans & Advances
Customer Deposits
RoE
Cost to Income
Credit Loss Ratio
NPL Ratio
FY19: N52.3bnFY18: N48.9bn
FY19: N2.3bnFY18: N581mn
FY19: N198.8bnFY18: N179.8bn
FY19: N470.0bnFY18: N501.7bn
FY19: 9.5%FY18: 9.0%
FY19: 1.2%FY18: 0.4%
FY19: 91.1%FY18: 97.0%
FY19: 3.0%FY18: 0.9%
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 22 /
PBB FINANCIAL ANALYSIS – FY 2019
Performance highlights
2019 Change 2018
Income statement N’million % N’million
Net interest income 36,071 12 32,176
Non-interest revenue 16,254 (3) 16,720
Total income 52,325 7 48,896
Credit impairment charges (2,191) >100 (618)
Operating expenses (47,669) (47,435)
Profit before tax 2,465 >100 843
Profit after tax 2,268 >100 581
Balance sheet FY 2019 FY 2018
Gross loans & advances 198,775 11 179,813
Deposit liabilities 469,957 (6) 501,689
Key selected ratios FY 2019 FY 2018
Cost to income ratio % 91.1 97.0
CASA ratio % 84 78
Credit loss ratio % 1.2 0.4
NPL/total loan ratio % 9.5 9.0
❖12% growth in NII on the back of 11% loans andadvances book growth.
❖ Credit impairment charges grew by over 100% asprovisions were made for loans not performing. Thenon-performing loans were largely from the agriculturalsector.
❖Operating expenses was flat year-on-year with staff costdeclining 5% while other operating expenses grew by6%.
❖We continue to support our clients’ business by availingthem credit facility.
❖Deposit book declined as we continue to releaseexpensive deposit. CASA ratio for PBB improved to 84%from 78% the previous year.
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 23 /
1,664,969
1,633,975
1,688,511
1,614,091
Q1-19 Q2-19 Q3-19 Q4-19
Branch Transaction Trend Q-o-Q
Digital banking continues to be a major focus for PBB. The total digitaltransactions grew by 38% year on year.
DIGITAL CHANNELS
32,809,389
36,922,038
43,447,22346,580,874
Q1-19 Q2-19 Q3-19 Q4-19
Digital Transaction Trend Q-o-Q
44,957,204
85,318,183 116,083,525
159,759,524
FY 2016 FY 2017 FY 2018 FY 2019
Digital Transaction Trend Y-o-Y
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 24 /
DIGITAL CHANNELS
2,999,213
6,533,579
14,657,732
29,557,160
5,551,148
6,172,303
6,883,217
6,969,093
FY 2016
FY 2017
FY 2018
FY 2019
Q1 2019
Q2 2019
Q3 2019
Q4 2019
USSD Banking
4,091,722
7,857,242
15,219,901
23,370,614
4,909,889
5,199,040
5,686,474
5,693,968
FY 2016
FY 2017
FY 2018
FY 2019
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Mobile Banking
3,784,348
7,209,429
11,627,149
15,354,426
3,456,193
3,666,215
4,021,874
4,075,705
FY 2016
FY 2017
FY 2018
FY 2019
Q1 2019
Q2 2019
Q3 2019
Q4 2019
POS
164,043
399,403
536,642
612,365
130,867
134,708
127,985
103,759
FY 2016
FY 2017
FY 2018
FY 2019
Q1 2019
Q2 2019
Q3 2019
Q4 2019
SME Internet Banking
22,277,271
47,131,873
49,866,875
54,902,229
12,428,975
13,128,577
13,970,700
13,674,846
FY 2016
FY 2017
FY 2018
FY 2019
Q1 2019
Q2 2019
Q3 2019
Q4 2019
ATM
6,950
95,974
161,694
153,577
36,576
39,885
48,351
46,472
FY 2016
FY 2017
FY 2018
FY 2019
Q1 2019
Q2 2019
Q3 2019
Q4 2019
BNA
102% 54% 32%
14% 10% 5%
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 25 /
• Cost optimization initiatives.
• Optimizing our digital banking offering
IMPROVE NIR TO COST RATIO
• The business would continue to focus on growth
in customer base as this would trigger increased
transaction velocity as well as growth of other
P&L elements.
✓ We would leverage on Virtual Banking to
ensure increased customer acquisition.
✓ Improve the active customer ratio.
✓ Enhance Primary Customer Growth
GROWTH IN CUSTOMER NUMBERS• Risk assets growth.
• Continued focus on after write-off recoveries.
• Increased customer deposits and cash
optimization initiatives.
BALANCE SHEET GROWTH
PBB – MOVING FORWARD 2020
BANKING (CIB)CORPORATE & INVESTMENT
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 27 /
CIB PERFORMANCE HIGHLIGHTS
Total Income
Profit After Tax
Gross Loans & Advances
Customer Deposits
RoE
Cost to Income
Credit Loss Ratio
NPL Ratio
FY19: N83.8bnFY18: N84.6bn
FY19: N49.8bnFY18: N51.2bn
FY19: N357.6bnFY18: N279.1bn
FY19: N167.9bnFY18: N306.0bn
FY19: 0.8%FY18: 0.6%
FY19: (0.2%)FY18: (1.3%)
FY19: 34.2%FY18: 39.2%
FY19: 36.6%FY18: 50.2%
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 28 /
CIB FINANCIAL ANALYSIS – FY 2019
Performance highlights
2018 Change 2018
Income statement N ’million % N ’million
Net interest income 35,247 (14) 40,952
Non-interest revenue 48,509 11 43,600
Total income 83,756 (1) 84,552
Credit impairment charges 535 (85) 3,594
Operating expenses (28,661) (14) (33,141)
Profit before tax 55,630 1 55,005
Profit after tax 49,756 (3) 51,218
Balance sheet FY 2019 FY 2018
Gross loans & advances 357,608 28 279,133
Deposit liabilities 167,883 (45) 306,003
Key selected ratios FY 2018 FY 2018
Cost to income ratio % 34.2 39.2
CASA ratio % 35 21
Credit loss ratio % (0.2) (1.3)
NPL/total loan ratio % 0.8 0.6
❖ A good performance from our capital markets,advisory and global markets businesses in 2019,despite the challenging operating environment.
❖ Credit impairments was a write-back with a creditloss ratio of –0.2% but declined year-on-year due tonon-occurrence of significant recovery.
❖ Cost-to-income ratio improved to 34.2% as a resultof savings in staff cost from incentive bonusprovisions which is tied to the Group’s share price.
❖ Loan book growth was driven by opportunitiestaken in term loans.
❖ Deposit book declined due to our drive to curtailcost of fund.
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 29 /
Digitization.5
Developing high performance culture & people engagement.
6
Efficient cost Management &optimisation.
7
Leveraging strength in FX.8
Growing client revenue contribution.
1
Driving the targeted growth of deposits to drive funding cost
down.2
Growing the loan book. 3
Unlocking the trade opportunity. 4
CIB – MOVING FORWARD 2020
WEALTH
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 31 /
FY19: N50.5bnFY18: N47.4bn
Total Income
FY19: N23.0bnFY18: N22.6bn
Profit After Tax
FY19: 42.2%FY18: 49.8%
Return on Equity
FY19: N3.8trnFY18: N3.2trn
Asset Under Mgt.
FY19: 35.0%FY18: 31.7%
Cost to Income
WEALTH PERFORMANCE HIGHLIGHTS
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 32 /
WEALTH FINANCIAL ANALYSIS – FY 2019
Performance highlights
2019 Change 2018
Income statement N’million % N’million
Net interest income 6,513 28 5,081
Non-interest revenue 43,992 4 42,284
Total income 50,505 7 47,365
Credit impairment charges 24 >100 (36)
Operating expenses (17,699) 18 (15,025)
Profit before tax 32,830 2 32,304
Profit after tax 23,011 2 22,641
FY 2019 FY 2018
Asset under Management (N ’million) 3,856,720 20 3,221,574
Key selected ratios FY 2019 FY 2018
Cost to income ratio % 35.0 31.7
❖Net interest income grew by 28% as the businesscontinues to invest its capital in financial andinvestment securities.
❖Non-interest revenue grew by 4% even thoughAuM grew by 20%. This is a reflection of theimpact of the regulatory induced fee reduction.
❖Operating expenses grew by 18%, driven by year-on-year growth in information technologyexpenses, depreciation and staff costs.Consequently, Cost-to-income ratio was up to 35%from 31.7% in the prior year.
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 33 /
WEALTH – MOVING FORWARD 2020
Collaboration 1Collaborate with regulators and other stakeholders todevelop initiatives that will entrench best practice,support industry growth and improve customerexperience. We will continue to leverage the StanbicIBTC ecosystem to deliver value adding services to ourclients.
Customer Experience 3Leverage emerging technology to deliver uniquevalue propositions and experiences for our clients.We will focus on increasing our distribution networkto conveniently serve our customers. Digitization4
Focus on data quality improvement initiatives aswell as increasing levels of digitization to improvetransactional and processing efficiencies across ourbusinesses.
Employee Engagement2Focus on employee engagement to ensureimproved employee value proposition andincreased productivity. We will also continue todevelop the capacity of our employees to makethem ready for the future of work.
GUIDANCEOUTLOOK &
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 35 /
✓ GDP growth of 2.4%✓ Average oil production
levels of 2.0m bpd✓ Brent oil price of $60 bbl✓ Stable political
environment✓ Average headline
inflation of 12.5% - 13.5%✓ Impact of COVID-19
Nigeria’s Economic & Political environment
Banking Industry
✓ MPR: 12% - 14%✓ Stable foreign
exchange rate
Areas of focus for 2020financial 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:✓ Competitive asset pricing✓ Regulatory interventions
Stanbic IBTC
OUTLOOK FOR 2020
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 36 /
2019 Actual 2019 Guidance 2020 Guidance
AuM Growth +19.7% 15% - 20% 15% - 20%
Return on Equity 27.3% 25% - 30% 25% - 30%
Cost to Income 50.4% 50% - 55% 50% - 55%
Net Interest Margin 4.5% 4% - 5% 4% - 5%
Cost of Risk 0.2% <3% < 2%
CASA Ratio 71.1% >60% >65%
NPL Ratio 3.9% <5% <5%
Deposit Growth (21%) (10%) - (15%) 10% - 15%
Loan Growth 23% 20% - 25% 15% - 20%
2020 GUIDANCE VS 2019 ACTUAL
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 37 /
Questions & Answers
APPENDIX
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 39 /
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%
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
2019
Standard Bank increased its stake in Stanbic IBTC to 65.70%
ABOUT STANBIC IBTC HOLDINGS PLC
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 40 /
Group income statement
GROUP INCOME STATEMENTChange
% 2019
Nmillion2018
NmillionGross earnings 5 233,808 222,360
Net interest income (0) 77,831 78,209 Interest income 2 120,412 118,382 Interest expense 6 (42,581) (40,173)
Non-interest revenue 6 108,755 102,604 Net fees and commission revenue 1 70,393 69,845
Fees and commission revenue 5 75,034 71,219 Fees and commission expense >100 (4,641) (1,374)
Trading revenue 16 36,332 31,311 Other revenue 40 2,030 1,448
Total income 3 186,586 180,813
Net impairment write-back/(loss) on financial assets (>100) (1,632) 2,940
Income after credit impairment charges 1 184,954 183,753 Operating expenses (2) (94,029) (95,601)Staff costs (6) (40,618) (43,027)Other operating expenses 2 (53,411) (52,574)
Profit before taxation 3 90,925 88,152 Direct taxation 16 (15,890) (13,712)Profit for the period 1 75,035 74,440
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 41 /
Group quarterly income statement
GROUP QUARTERLY INCOME STATEMENT
Q4 2019 Q3 2019 Q2 2019 Q1 2019N’million N’million N’million N’million
Gross income 57,651 58,783 58,681 58,693 Net interest income 19,159 19,362 19,125 20,185
Interest income 29,374 30,254 29,642 31,142 Interest expense (10,215) (10,892) (10,517) (10,957)
Non-interest revenue 26,816 27,087 27,848 27,004 Net fee and commission revenue 17,020 17,404 19,178 16,791
Fee and commission revenue 18,481 18,846 20,369 17,338 Fee and commission expense (1,461) (1,442) (1,191) (547)
Trading revenue 9,144 9,585 7,805 9,798 Other revenue 652 98 865 415
Total income 45,975 46,449 46,973 47,189 Credit impairment charges (1,722) (467) (834) 1,391 Income after credit impairment charges 44,253 45,982 46,139 48,580 Operating expenses (22,436) (21,524) (24,998) (25,071)
Staff costs (10,045) (10,688) (10,715) (9,170)Other operating expenses (12,391) (10,836) (14,283) (15,901)
Profit before taxation 21,817 24,458 21,141 23,509 Taxation (2,334) (5,151) (4,046) (4,359)Profit for the period 19,483 19,307 17,095 19,150
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 42 /
Group statement of financial position
Change%
2019N’million
2018N’million
GROUP STATEMENT OF FINANCIAL POSITION
Change%
2019Nmillion
2018Nmillion
Assets
Cash and cash equivalents 0 456,396 455,773
Pledged assets 63 231,972 142,543
Trading assets >100 248,909 84,351
Derivative assets 9 32,871 30,286
Financial investments (61) 155,330 400,000
Loans and advances 21 535,170 441,261
Loans and advances to banks (64) 3,046 8,548
Loans and advances to customers 23 532,124 432,713
Other assets >100 168,689 77,787
Property and equipment 28 27,778 21,652
Right of Use assets >100 3,217 -
Intangible assets >100 5,232 827
Deferred tax assets 19 10,892 9,181
Total assets 13 1,876,456 1,663,661
Equity 26 302,229 239,667 Equity attributable to ordinary shareholders
26 296,302 235,406
Ordinary share capital 3 5,252 5,120 Ordinary share premium 16 88,181 76,030 Reserves 32 202,869 154,256 Non-controlling interest 39 5,927 4,261
Liabilities11 1,574,227 1,423,994
Trading liabilities 99 250,203 125,684 Derivative liabilities 5 4,343 4,152 Current tax liabilities 29 19,230 14,899 Deposit and current accounts (8) 886,743 967,964 Deposits from banks 55 248,903 160,272 Deposits from customers (21) 637,840 807,692
Other borrowings 32 92,165 69,918 Debts securities issued 76 106,658 60,595 Provisions (34) 8,860 13,452 Other liabilities 23 206,025 167,193 Deferred tax liabilities (100) - 137
Total equity and liabilities 13 1,876,456 1,663,661
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 43 /
Personal & Business Banking Corporate & Investment Banking Wealth2019 2018 2019 2018 2019 2018
N’million Nmillion N’million N’million N’million N’millionGross income 64,031 59,332 114,631 114,289 50,505 47,365 Interest income 47,777 42,612 66,122 70,689 6,513 5,081 Interest expense (11,706) (10,436) (30,875) (29,737) - -Net interest income 36,071 32,176 35,247 40,952 6,513 5,081 Non-interest revenue 16,254 16,720 48,509 43,600 43,992 42,284 Total income 52,325 48,896 83,756 84,552 50,505 47,365 Credit impairment charges (2,191) (618) 535 3,594 24 (36)
Income after credit impairment charges 50,134 48,278 84,291 88,146 50,529 47,329
Operating expenses (47,669) (47,435) (28,661) (33,141) (17,699) (15,025)
Staff costs (23,702) (24,831) (9,507) (11,097) (7,409) (7,099)Other operating expenses (23,967) (22,604) (19,154) (22,044) (10,290) (7,926)
Profit before tax 2,465 843 55,630 55,005 32,830 32,304 Tax (197) (262) (5,874) (3,787) (9,819) (9,663)Profit after tax 2,268 581 49,756 51,218 23,011 22,641
Cost to Income 91.1% 97.0% 34.2% 39.2% 35.0% 31.7%Return on Equity 3.0% 0.9% 36.6% 50.2% 42.2% 49.8%
SEGMENT REPORTING
STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 44 /
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