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STANBIC IBTC HOLDINGS PLC PRESENTATION / PAGE 1 /

STANBIC IBTC HOLDINGS PLCFULL YEAR 2020 FINANCIAL RESULTS PRESENTATION

26 March 2021



TABLE OF CONTENTS

Background and the operating environment Page 3

Financial review – FY 2020 Page 10

Corporate & Investment Banking Page 25

Personal & Business Banking Page 29

Wealth Page 35

Guidance Page 39

Appendix Page 42

1

2

3

4

5

6

7



BACKGROUND AND THE OPERATING ENVIRONMENT



STRATEGIC FOCUS

Committed to solutions that drive your progress.Missionthe reason we exist

Visionwhat we aspire to be

To be the leading end-to-end financial solutions provider in Nigeria through innovative and customer focused people.

Transform client experience

Execute with excellence

Drive sustainable growth and value

Our strategic priorities:

What we need to do to deliver our purpose



MACRO-ECONOMIC AND OPERATING ENVIRONMENT

❖Nigeria exited a pandemic-induced recession in Q42020 posting growth of 0.11%, but still culminating inan overall contraction of 1.9% year-on-year in FY2020.

❖The unprecedented production cut of c.10mbpd bythe members of OPEC+ reduced Nigeria’s oilproduction numbers, averaging 1,586mpd in 2020(2019: 1,786mbpd). Meanwhile, oil prices werevolatile most of the year.

❖The Country’s external reserves were on thedownward trajectory in 2020, closing the year at$35.3 billion.

❖Excessive market liquidity, with few investmentoutlets, ensured yields across the curve declined in2020.

❖Headline inflation was on the upward trajectory in2020, averaging 13.21% (2019: 11.39%), owing toelevated food inflation and uptick in core inflation.

❖The exchange rate witnessed some major pressuredepreciating at the various markets as liquidity acrossFX segments declined significantly during the year.

❖The CBN maintained some sort of balanced approachto monetary policy management in 2020 by easingthrough its loan-to-deposit ratio policy as well as lessissuances of OMO instruments while also tighteningthrough its massive cash reserving methods.

Inflation %

Reserves, Brent crude oil price & crude oil production Interest rates

Exchange rate movement

0.0

0.5

1.0

1.5

2.0

- 10 20 30 40 50 60 70

Reserves (US$ billions)

Brent Crude oil (US$).Month end price

Crude oil production (million bpd) p.e

US$ Million

0%

2%

4%

6%

8%

10%

12%

14%

Average inter-bank call rate OMO Tbills - short term

OMO Tbills - medium term OMO Tbills - long term

Bond - 3 year

11.98 12.13 12.20 12.26 12.34 12.40 12.56 12.8213.22

13.7114.23

14.89

15.75

10

11

12

13

14

15

16

17

250.00

300.00

350.00

400.00

450.00

500.00

550.00

Dec

-18

Jan

-19

Feb

-19

Mar

-19

Ap

r-1

9

May

-19

Jun

-19

Jul-

19

Au

g-1

9

Sep

-19

Oct

-19

No

v-1

9

Dec

-19

Jan

-20

Feb

-20

Mar

-20

Ap

r-2

0

May

-20

Jun

-20

Jul-

20

Au

g-2

0

Sep

-20

Oct

-20

No

v-2

0

Dec

-20

NG

N /

USD

rat

e

CBN Official Parallel market NAFEX I&E FX Window



COVID-19: DOMESTIC UPDATE

❖ The Coronavirus has infected 162,082 people andcaused 2,031 deaths in Nigeria as of 23 March2021 while 148,530 cases have been discharged.

❖ All Nigerian States have reported COVID-19cases. Lagos State recorded the most COVID-19positive cases in Nigeria, accounting for 36% ofthe total confirmed cases.

❖ The Country commenced its COVID-19vaccination early March 2021 and continues toimplement physical preventive measures to curbthe spread of COVID-19.

Map shows the total confirmed cases by States as of 23 March 2021Active cases, 7%

Discharged cases, 92%

Deaths, 1%

FCT

19,591

Lagos

57,370

Cross River

293Akwa Ibom

1,051



People & Systems Customers Liquidity/Capital

❖ Proactively activated remote working formost of our workforce.

❖ Empowered workforce with moderncollaboration tools to work from theirrespective residences.

❖ Implemented additional security measuresand safety protocols for the protection ofthe staff members on essential duty.

❖ Continued engagement of staff membersthrough online sessions to help managemental health and wellbeing.

❖ Reviewed third-party dependencies andconfirmed their readiness to continue toprovide services to our organisationremotely.

❖ Implemented safety protocols across all ofour service locations.

❖ Intensified communication andengagement with clients to identify thosewho expect or are in financial distress.

❖ Shared insights on the impact of thepandemic on micro and macro-economicindices via tailored webinars andInstagram Live sessions delivered bysubject matter experts, to enable clientdecision making.

❖ Reviewed our capital plan with revisedestimates and forecasts in relation toprojected earnings, loan growth andimpairment losses from the pandemic.

❖ Conducted stress tests to measure theimpact of the pandemic as well as foreigncurrency volatility on the Group.

❖ Our results showed that our capital andliquidity positions remained and are stillwell above regulatory limits.

❖ Increased focus on optimizing capitalthrough specific monitoring of capitaldemands from loan portfolio.

❖ Retained the Fitch AAA rating of StanbicIBTC and its banking subsidiary, whichreflects the strongest capacity for timelypayment of financial commitments.

COVID-19 UPDATEOUR RESPONSE MEASURES TO ENSURE BUSINESS CONTINUITY



Loan Restructure

Trade Tenor Extension

Fee WaiverIntervention

Facilities

❖ Granted loanmoratorium andextension to customersranging from schools tosmall scale businessesand few corporates.

❖ Total value of loansrestructured as a resultof COVID-19 amountedto ₦50.97 billion in FY2020.

❖ Extension of therepayment period oftrade obligations dueto FX constraints andincreased receivablesperiod.

❖ Affected tradeobligations amountedto ₦1.2 billion for FY2020.

❖ Implemented a waiverof certain paymentcharges on our digitalplatforms in April2020.

❖ Total transactioncharges refundedamounted to ₦17.7million for 908,793transactions.

❖ Extended moratoriumand reduced interestrate by 400 basis pointon the on-lending fundsin line with the CBNdirective.

❖ Total value of theintervention facilitieswas ₦26 billion as at FY2020 with net interestincome impact of ₦940million.

COVID-19 UPDATECLIENT FOCUS: ACTIONS TAKEN



COMMUNITY SUPPORT

COVID-19 UPDATE

Donations

❖ Donated ₦25 million to FATE Foundation for therenovation and donation of PPEs andconsummables at The National OrthopedicHospital Igbobi (NOHI) amongst others.

❖ Donated ₦250 million to the CACOVID Relief Fundset up by the CBN to combat the COVID-19pandemic.

❖ Donated ₦2.5 million to the Edo State COVID-19Relief Fund

❖ Donated test kits worth ₦50.5 million to the LagosState Government and other States, includingGovernment Agencies (Rivers, Cross Rivers, Kogi ,Ebonyi, Ondo, Kaduna, Abuja, Borno , NIMR andNCDC)

Partnerships

❖ Partnership with Inoyo Toro Foundation toprovide a testing machine to the Akwa Ibom StateGovernment

❖ Partnership with Givefood.ng to provide food for5,250 people belonging to families in desperateneed of food

❖ Partnership with OAK Rural Health Organizationon a project tagged “Stop COVID-19 spread”project involving the distribution of face masks inOjoo Market in Akinyele Local Government Area,Ibadan in Oyo state to reduce the spread of theCOVID-19. The market community was alsoenlightened and equipped with adequateknowledge of COVID-19



FINANCIAL REVIEW FY 2020



PROFITABILITY - RESILIENT EARNINGS HINGED ON OUR DIVERSIFIED BUSINESS MODEL

SUMMARY OF FY 2020 PERFORMANCE – INCOME STATEMENT

Gross Earnings

FY 2020: ₦234.4bn

FY 2019: ₦233.8bn

Earnings Per Share

FY 2020: 729kobo

FY 2019: 692kobo

Return on Equity

FY 2020: ₦83.2bn

FY 2019: ₦75.0bn

Cost to Income

Profit After Tax

FY 2020: 24.3%

FY 2019: 27.3%

Credit Loss Ratio

FY 2020: 1.6%

FY 2019: 0.2%

FY 2020: 47.4%

FY 2019: 50.4%



FINANCIAL POSITION – GROWTH IN EARNING ASSETS + INCREASED LOW-COST FUNDING

SUMMARY OF FY 2020 PERFORMANCE – FINANCIAL POSITION ITEMS

Total Assets

FY 2020: ₦2.49trn

FY 2019: ₦1.88trn

Customer Deposits

FY 2020: ₦819.9bn

FY 2019: ₦637.8bn

Net Customer Loans

FY 2020: ₦625.1bn

FY 2019: ₦532.1bn

Gross NPL RatioReturn on Asset

FY 2020: 3.8%

FY 2019: 4.2%

CASA Ratio

FY 2020: 82.8%

FY 2019: 71.1%

FY 2020: 4.0%

FY 2019: 3.9%



EVOLUTION OF HEADLINE EARNINGS

OVERVIEW OF INCOME STATEMENT FOR FY 2020 VS FY 2019

FY 2020

105,776

(31,561) 124,709

(9,935)

(94,272)

94,717

(11,506)

83,211

Interest income Interest expense Non-interestrevenue

Credit impairmentcharges

Operating expenses Profit beforetaxation

Taxes Profit after taxation

₦’ million

FY 2019

120,412

(42,581)

108,755

(1,632)

(94,029)

90,925

(15,890)

75,035

Interest income Interest expense Non-interest revenue Credit impairmentcharges

Operating expenses Profit before taxation Taxes Profit after taxation



CONTINUED PRESSURE ON MARGINS RESULTING FROM THE LOW INTEREST RATE ENVIRONMENT

NET INTEREST INCOME

❖ Interest income declined by 12% to ₦105.8billion in FY 2020 from ₦120.4 billionachieved in FY 2019 due to depressedasset yields despite the comparativegrowth recorded in loans year-on-year.

❖ Interest expense also declined by 26%following deposit repricing andimprovement in deposit mix towardscheap funds as we continued to focus onreplacing expensive term deposits withlow-cost deposits, aiding the decline ofcost of funds to 2.9% from 3.9% in theprior period.

❖ Net interest income declined by 5% as thedecreased interest expense partly dousedthe impact of the contraction in interestincome. Consequently, net interestmargin* declined to 3.5% (FY 2019: 4.5%).

%

57.9 83.6 78.2 77.8 74.2

5.9%6.9%

5.2%

4.5% 3.5%

3.9%4.8%

5.4%4.4%

3.0%

0%

2%

4%

6%

8%

0

50

100

2016 2017 2018 2019 2020

Net interest income Net interest margin before impairment charges

Net interest margin after impairment charges

₦’billion

13.7

17.7

13.7 11.6

9.7

4.1 4.7 4.0 3.9 2.9

5.9 6.9

5.2 4.5 3.5

2016 2017 2018 2019 2020Asset yield Cost of funds Net interest margin

*Net interest margin = Total assets excluding derivative assets

Net interest income



STRONG GROWTH IN TRADING INCOME PARTIALLY OFFSET BY PRESSURE ON FEE INCOME

NON-INTEREST REVENUE

❖ Non-interest revenuegrew by 15% drivenlargely by a 43%year-on-yearincrease in tradingincome.

Break down of fees and commission income

Break down of non-interest income by type₦ 'billion

₦ 'billion

3.8 2.6 7.2

47.0

2.5 2.7 5.4 2.1 1.8 4.2 3.8

7.3

42.4

3.8 3.4 6.5

2.1 1.5

Account transactionfees

Card basedcommission

Brokerage andfinancial advisory

fees

Asset managementfees

Custody transactionfees

Electronic banking Foreign currencyservice fees

Documentation andadministration fees

Other

2020 2019

68.2 89.2 102.6 108.8 124.7

68% 71%

59%58% 63%

0%

20%

40%

60%

80%

100%

0

20

40

60

80

100

120

140

2016 2017 2018 2019 2020

Non-interest revenue % of total income

2016 2017 2018 2019 2020

1% 1% 1% 1% 1%

23%33% 31% 31%

42%

76%66% 68% 68%

57%

Other revenue Trading revenue Net fees and commisions income



ACCELERATED PROVISIONING ON DELINQUENT FACILITIES DRIVEN BY DETERIORATION IN MACRO-ECONOMIC CONDITIONS

INCOME STATEMENT - CREDIT IMPAIRMENT

CLR 0.2% 1.6%

₦ ‘million₦ ‘million

❖Credit impairment onfinancial assets was acharge of ₦9.9bncompared to ₦1.6bn inFY 2019. The outcomeis in line with ourdisciplined approachto treating delinquentassets.

❖Credit loss ratio was1.6% for FY 2020.

FY 2020

FY 2019₦ ‘million

1,632 9,935

FY 2019 FY 2020

>100%

1,121

(3,672)

7,370(3,187)

1,632

-4 000

-2 000

0

2 000

4 000

6 000

8 000

Stage 1 Stage 2 Stage 3 Recoveries FY 2019

1,597 (1,965)

14,529

(4,594)

9,935

-6 000

-3 000

0

3 000

6 000

9 000

12 000

15 000

Stage 1 Stage 2 Stage 3 Recoveries FY 2020



PRUDENT COST MANAGEMENT AND POSITIVE JAWS

OPERATING EXPENSES AND TAXATION

❖Operating expenses growth was muted year-on-year.

❖Staff cost was up by 4% year-on-year due toinflationary adjustment on salary.

❖Other operating expenses declined by 2% due tosavings in training, travels, entertainment,deposit insurance premium and motor vehiclemaintenance expenses.

❖Cost-to-income ratio improved to 47.4% from50.4% recorded in prior year.

❖ Effective tax rate decreased to 12.1% in FY 2020 from 17.5% in the prior year due to change in tax basis.

69,041 86,026 95,601 94,029 94,272

54.8%49.8% 52.9% 50.4% 47.4%

0%

20%

40%

60%

80%

100%

-

20,000

40,000

60,000

80,000

100,000

120,000

2016 2017 2018 2019 2020Operating expenses (N'm) Cost-to-income ratio

₦’million

8,689 12,785 13,712 15,890 11,506

23.4%

20.9%

15.6%17.5%

12.1%

0%

5%

10%

15%

20%

25%

-

5,000

10,000

15,000

20,000

2016 2017 2018 2019 2020Taxation Effective tax rate

₦’million



STRONG AND DIVERSE BALANCE SHEET

TOTAL ASSETS

₦ 'billion

₦ ‘million

2,486,306

634,939215,888 170,578

612,276

625,139 189,14338,343

Total Assets Cash & loans to bank Trading andderivative assets

Pledged assets Financialinvestments

Loans & advances tocustomers

Other assets Intangible assets,property &equipment

30% 30% 28% 25% 26%

4% 4% 11% 14% 9%

2% 11% 5%13%

7%

24%23% 24% 8% 25%

33%27% 26%

28%25%

5% 4% 5% 10% 8%2% 1% 1% 2% 1%

2016 2017 2018 2019 2020

Cash & loans to banks Pledged & derivative assetsTrading assets Financial investmentsLoans & advances to customers Other assetsIntangible assets, property & equipment

1,054 1,386 1,664 1,876 2,486

2.5%

3.8%

4.8%

4.2%3.8%

0%

1%

2%

3%

4%

5%

6%

0

500

1,000

1,500

2,000

2,500

3,000

2016 2017 2018 2019 2020

Total Asset Return on assets



GROWTH IN BOTH CORPORATE AND RETAIL LENDING

GROSS LOANS AND ADVANCES

FY 2020LCY loans FCY loans Total loans ₦ ‘billion ₦ ‘billion ₦ ‘billion

Personal & Business Banking 188.4 52.6 241.0 Mortgage 4.2 - 4.2 Instalment sale & finance leases 9.5 0.4 9.9 Overdrafts 27.9 3.1 31.0 Term loans 146.8 49.1 195.9 Corporate & Investment Banking 149.6 264.7 414.3 Term loans 130.2 264.7 394.9 Overdrafts 18.2 0.0 18.2 Instalment sale and finance lease 1.2 - 1.2 Total loans 338.0 317.3 655.3 Percentage (%) 52% 48% 100%

FY 2019LCY loans FCY loans Total loans ₦ ‘billion ₦ ‘billion ₦ ‘billion

162.5 36.3 198.8 4.5 - 4.5 7.4 0.7 8.1

26.9 3.1 30.0 123.8 32.5 156.3 145.0 212.7 357.6 121.6 212.6 334.2

22.6 - 22.6 0.8 - 0.8

307.5 248.9 556.4 55% 45% 100%

❖PBB and CIB loan book grew by 21%and 16% respectively.

❖LCY book grew by 9.9% and FCY bookgrew by 27.5%.

❖ Gross loans portfolio grew by 18%year-on-year as we continue tosupport our clients’ businesses andaspirations.

❖ Loan-to-Deposit Ratio for FY 2020averaged 68.6%.

Gross loans and advances ₦ ’million

375.3 403.9 458.9

556.4 655.3

0

200

400

600

800

2016 2017 2018 2019 2020

₦’ billion

655,292 556,383

(251) 2,232 (3,334)100,263

Gross loans andadvances - FY 2019

Mortgage lending Instalment salesand finance leases

Overdrafts Term loans Gross loans andadvances - FY 2020



LOAN GROWTH WITH FOCUS ON RESILIENT NON-CYCLICAL SECTORS

LOANS AND ADVANCES BY SECTOR

FY 2020 FY 2019

Agriculture5% Construction and real

estate9%

Consumer loans9% Electricity, Gas &

Water Supply 0.23%

Financial intermedi

aries & insurance

5%

General commerce10%

Government6%

Manufacturing26%

Oil & gas services

4%

Downstream oil & gas11%

Upstream oil & gas11%

Transportation & communication

4%Agriculture

6%Construction and

real estate8%

Consumer loans10% Financial

intermediaries & insurance

1%

General commerce

8%

Government6%

Manufacturing28%

Oil & gas services

5%

Downstream oil & gas10%

Upstream oil & gas14%

Transportation & communication

4%



INCREASE IN NON-PERFORMING LOANS REFLECTING THE CHALLENGING ECONOMIC ENVIRONMENT

LOAN PERFORMANCE

FY 2020 FY 2019

Sector% of Total

NPL NPL ratio

(%)% of Total

NPL NPL ratio (%)

Agriculture 20.4% 15.4% 41.0% 28.2%

Construction and real estate 33.5% 15.4% 15.9% 7.7%

Consumer credit 9.1% 4.1% 17.8% 6.8%

General commerce 4.1% 1.6% 5.6% 2.8%Government 0.0% 0.0% 0.4% 0.3%

Manufacturing 2.3% 0.4% 0.3% 0.05%

Oil & gas services 3.5% 3.4% 3.9% 3.0%

Oil & gas Downstream 22.0% 8.1% 0.02% 0.01%

Transportation & Communication

5.1% 4.9% 15.1% 13.0%

Grand Total 100% 4.0% 100.0% 3.9%

FY 2020 (₦ ‘million)

% of total NPLs

FY 2019(₦ ‘million)

% of total NPLs

Local currency 19,579 74% 15,343 71%

Foreign currency 6,914 26% 6,251 29%

Total NPLs 26,492 100% 21,594 100%

21.9 35.3 17.7 21.6 26.5

5.8%

8.6%

3.9% 3.9%4.0%

0%

2%

4%

6%

8%

10%

0

10

20

30

40

2016 2017 2018 2019 2020Gross non-performing loans NPL/ total loans

₦’ billion

SectorCovid-19 Related

(N ’million)

Non Covid-19 Related

(N ’million)Total

(N’ million)Restructured to Total Loan

Agriculture - 41 41 0.1%

Construction & Real Estate 24,463 339 24,802 43.0%

Consumer Loans 7,859 951 8,809 14.9%

General Commerce 1,918 363 2,281 3.4%

Government 8,566 - 8,566 24.1%

Manufacturing 5,150 2,156 7,306 4.3%

Oil & Gas Service 1,382 6,007 7,389 26.9%

Oil & Gas Downstream 1,428 471 1,899 2.6%

Transport & Communication 207 1,358 1,565 5.7%

Grand Total 50,972 11,685 62,658 9.6%

Non-Performing Loans Restructured Loans for FY 2020



SECTORIAL STAGES OF THE GROSS LOAN BOOK AND PROVISION COVERAGE RATIO

GROSS LOAN STAGES

Sectors

Performing Loans Non-Performing Loans

Stage 1 Stage 2 Stage 3 Gross LoanN’ million

Provision coverage

Gross LoanN’ million

Provision coverage

Gross LoanN’ million

Provision coverage

Agriculture 27,817 1.45% 1,761 6.74% 5,399 73.22%

Construction & Real Estate 48,478 1.36% 339 18.48% 8,885 79.04%

Consumer Credit 53,796 1.09% 2,818 8.43% 2,399 71.59%

Electricity, Gas & Water Supply 1,477 4.41% - - - -

Financial Intermediaries & Insurance 32,130 0.80% - - - -

General Commerce 63,921 1.50% 2,976 9.05% 1,096 93.50%

Government 35,593 1.10% - - - -

Manufacturing 163,784 0.74% 6,088 9.36% 610 74.00%

Oil & Gas Service 26,365 2.19% 208 14.38% 928 82.36%

Oil & Gas Downstream 64,579 0.91% 1,437 11.70% 5,832 99.26%

Oil & Gas Upstream 69,348 1.19% 0.39 9.73% - -

Transport & Communications 25,525 0.63% 359 - 1,345 92.35%

Grand Total 612,812 1.09% 15,987 9.44% 26,492 82.90%



ACCELERATED GROWTH IN LOW-COST DEPOSITS

CUSTOMER DEPOSITS

FY 2019LCY FCY Total

₦ ’billion ₦ ‘billion ₦ ‘billion 302.4 167.5 470.0 163.3 143.4 306.8

87.4 - 87.4 4.6 2.3 6.9

47.1 21.8 68.9

96.5 71.4 167.9 41.4 17.9 59.3 21.4 2.2 23.6 33.7 51.3 85.0

398.9 238.9 637.8 63% 37% 100%

❖ Expensive term depositswere not rolled over.

❖ CASA ratio improved from71.1% in FY 2019 to 82.8%in FY 2020.

FY 2020LCY FCY Total

₦ ’billion ₦ ’billion ₦ ’billion Personal & Business Banking 408.5 161.5 570.1

Current Accounts 217.3 136.5 353.8

Savings Accounts 150.6 - 150.6

Call Deposits 16.9 0.8 17.6

Term Deposits 23.8 24.2 48.0 Corporate & Investment Banking 167.7 82.2 249.9

Current accounts 105.5 69.0 174.5

Call deposits 23.5 1.7 25.1

Term deposits 38.7 11.6 50.3

Total deposits 576.2 243.7 819.9 70% 30% 100%

₦ ’million

561.0 753.6 807.7 637.8 819.9

57.0%49.2%

56.8%

71.1%

82.8%

0%10%20%30%40%50%60%70%80%90%

0

100

200

300

400

500

600

700

800

2016 2017 2018 2019 2020

Customer deposits CASA mix

₦ ’billion

819,944 637,840

162,227

12,343 63,217 (55,683)

Customerdeposits FY

2019

Currentaccounts

Call deposits Savingsaccounts

Term deposits Customerdeposits FY

2020



STRONG CAPITAL BUFFERS

CAPITAL AND SHAREHOLDERS’ FUND

₦ ’billion

18.6% 19.6%21.3% 21.9%

23.1%22.8% 23.5%24.7% 24.6% 24.7%

2016 2017 2018 2019 2020

Tier 1 capital adequacy Total capital adequacy Statutory minimum

1,371 1,812 2,893 2,821 3,341

1.1

2.3 2.1

1.5 1.3

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

3,600

2016 2017 2018 2019 2020

Net asset value per share Price- to-book

Kobo Times

130.4 159.6 208.7

265.9 333.7

18.9%

28.9%

34.5%

27.3%24.3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

50

100

150

200

250

300

350

400

2016 2017 2018 2019 2020

Shareholders' fund (average) Return on average equity



CORPORATE & INVESTMENT BANKING (CIB)



KEY METRICS

SUMMARY OF FY 2020 PERFORMANCE (CIB)

Credit Loss Ratio

Profit After TaxGross Loans &

Advances

Customer Deposits

Total Income

Return on EquityCost to Income NPL Ratio

FY 2020: ₦68.4bn

FY 2019: ₦49.8bnFY 2020: ₦414.3bn

FY 2019: ₦357.6bn

FY 2020: 50.6%

FY 2019: 36.6%

FY 2020: 3.5%

FY 2019: 0.8%

FY 2020: ₦249.9bn

FY 2019: ₦167.9bn

FY 2020: 1.8%

FY 2019: (0.2%)

FY 2020: ₦108.3bn

FY 2019: ₦83.8bn

FY 2020: 30.4%

FY 2019: 34.2%



ASSET GROWTH AND IMPROVEMENT IN EARNINGS

CIB FINANCIAL ANALYSIS – FY 2020

Performance highlights

FY 2020 Change FY 2019

Income statement ₦’million % ₦’million

Net interest income 43,593 24 35,247

Non-interest revenue 64,670 33 48,509

Total income 108,263 29 83,756

Credit impairment charges (6,967) >(100) 535

Operating expenses (32,892) 15 (28,661)

Profit before tax 68,404 23 55,630

Profit after tax 68,407 37 49,756

Balance sheet FY 2020 FY 2019

Gross loans & advances 414,284 16 357,608

Deposit liabilities 249,884 49 167,883

Key selected ratios FY 2020 FY 2019

Cost to income ratio % 30.4 34.2

CASA ratio % 70 35

Credit loss ratio % 1.8 (0.2)

NPL/total loan ratio % 3.5 0.8

❖ A good performance from our Global Markets business in2020 as we were well positioned to take advantage ofmovements in the yield curve, despite the challengingoperating environment.

❖ Proper mix in our liability book helped reduce our interestexpense by 18% year-on-year coupled with 4% growth ininterest income, resulting in 24% growth in NII.

❖ Credit impairment grew by over 100% as a result of provisionmade for impaired loans largely from oil & gas andconstruction sectors as well as non-impaired loans inanticipation of depressed economic environment.

❖ Cost-to-income ratio improved to 30.4% as a result ofimproved revenue growth.

❖ Loan book growth was driven by opportunities to support ourclients’ aspirations.

❖ Deposit book grew with focus on low-cost deposits.



Grow the client franchise1

Drive trade growth2

Optimize the right funding mix3

Grow a resilient LCY loan book4

CIB –2021 FOCUS



PERSONAL & BUSINESS BANKING (PBB)



KEY METRICS

SUMMARY OF FY 2020 PERFORMANCE (PBB)

Credit Loss Ratio

Profit After TaxGross Loans &

Advances

Customer Deposits

Total Income

FY 2020: (₦9.6bn)

FY 2019: ₦2.3bn

FY 2020: ₦241.0bn

FY 2019: ₦198.8bn

FY 2020: ₦570bn

FY 2019: ₦470bn

FY 2020: ₦38.6bn

FY 2019: ₦52.3bn

Return on Equity

FY 2020: (7.7%)

FY 2019: 3.0%

Cost to Income

FY 2020: 5.0%

FY 2019: 9.5%

FY 2020: 1.3%

FY 2019: 1.2%

NPL Ratio

FY 2020: 116.6%

FY 2019: 91.1%



ASSET GROWTH BUT CONTRACTION IN EARNINGS DUE TO REGULATORY FEE CUT AND PRESSURE ON YIELDS

PBB FINANCIAL ANALYSIS – FY 2020

Performance highlights

FY 2020 Change FY 2019Income statement ₦ ’million % ₦ ’million

Net interest income 26,883 (25) 36,071

Non-interest revenue 11,712 (28) 16,254

Total income 38,595 (26) 52,325

Credit impairment charges (2,927) 34 (2,191)

Operating expenses (45,016) (6) (47,669)

Profit before tax (9,348) >(100) 2,465

Profit after tax (9,621) >(100) 2,268

Balance sheet FY 2020 FY 2019

Gross loans & advances 241,008 21 198,775

Deposit liabilities 570,060 21 469,957

Key selected ratios FY 2020 FY 2019Cost to income ratio % 116.6 91.1

CASA ratio % 88.5 83.9Credit loss ratio % 1.3 1.2 NPL/total loan ratio % 5.0 9.5

❖Net interest income decreased by 25% to ₦26.9 billion followingthe decline in interest income.

❖ Interest income was down by 31% to ₦33.0 billion (FY 2019: ₦47.8billion) as a result of lower yields on loans and advances.

❖The business however, benefited from the decline in interestexpenses following accelerated growth in cheap deposits whichhelped reduce cost of funds. Interest expense declined by 47% to₦6.2 billion from ₦11.7 billion in FY 2019.

❖ Credit impairment charges grew by 34% as provisions were madefor impaired loans largely from agriculture sector as well as nonimpaired loans in anticipation of depressed economicenvironment.

❖ Operating expenses were down 6% year-on-year as a result of12% decline in other operating expenses which was doused by 1%growth in staff cost.

❖We continue to support our clients’ business by availing themcredit facilities resulting in 21% growth in gross loans andadvances.

❖Deposit book grew by 21% with focus on low-cost deposits whichsaw CASA ratio improve to 88.5%.



DIGITIZATION

1,614,091

1,494,384

421,180 465,923

836,062

Q4-19 Q1-20 Q2-20 Q3-20 Q4-20

Branch Transaction Trend Q-o-Q

46,580,874 46,693,274 39,106,254 48,457,779 49,723,575

Q4-19 Q1-20 Q2-20 Q3-20 Q4-20

Digital Transaction Trend Q-o-Q

85,318,183

116,083,525

155,704,729

183,989,344

FY 2017 FY 2018 FY 2019 FY 2020

Digital Transaction Trend Y-o-Y

18%

❖ Digital transactions grewby 18% YoY.

❖ Branch transactionsmoderated during theyear, reflecting theincreasing preference foralternative serviceplatforms.

GROWTH IN DIGITAL TRANSACTIONS



11,723,451

17,833,709

29,557,160

22,119,905

31,956,231

54,076,136

H1 2019

H2 2019

FY 2019

H1 2020

H2 2020

FY 2020

USSD Banking

10,108,929

13,261,685

23,370,614

13,542,836

17,728,821

31,271,657

H1 2019

H2 2019

FY 2019

H1 2020

H2 2020

FY 2020

Mobile Banking

7,122,408

8,232,018

15,354,426

6,699,733

7,453,613

14,153,346

H1 2019

H2 2019

FY 2019

H1 2020

H2 2020

FY 2020

POS

265,575

346,790

612,365

619,472

842,761

1,462,233

H1 2019

H2 2019

FY 2019

H1 2020

H2 2020

FY 2020

SME Internet Banking

25,557,552

29,344,677

54,902,229

24,502,054

26,064,086

50,566,140

H1 2019

H2 2019

FY 2019

H1 2020

H2 2020

FY 2020

ATM

76,461

77,116

153,577

44,255

16,846

61,101

H1 2019

H2 2019

FY 2019

H1 2020

H2 2020

FY 2020

BNA

83% 34% 8%

>100% 8% 60%

DIGITIZATIONTRANSACTION VOLUMES ACROSS THE DIGITAL CHANNELS



OUR PRIORITIES IN 2021

PBB 2021 FOCUS

Improve operational efficiency through effective channel management and implementation of cost saving initiatives.

Accelerate customer growth through new-to-bank acquisition.

1

Grow NIR via clients’ transactional velocity growth in all business segments.

2

Grow the balance sheet in a sustainable manner by focusing on resilient sectors within our risk appetite.

3 4

Transactional Velocity Growth

Cost Management

Growing Scale

Risk Asset Growth



WEALTH



KEY METRICS

SUMMARY OF FY 2020 PERFORMANCE (WEALTH)

Total Income

FY 2020: ₦52.1bn

FY 2019: ₦50.5bn

Profit After Tax

FY 2020: ₦24.4bn

FY 2019: ₦23.0bn

Return on Equity

FY 2020: 33.4%

FY 2019: 42.2%

Cost to Income

FY 2020: 31.4%

FY 2019: 35.0%

Asset under Mgt.

FY 2020: ₦4.6trn

FY 2019: ₦3.9trn



GROWTH IN EARNINGS SUPPORTED BY AUM GROWTH AMID REGULATORY FEE CUT

WEALTH FINANCIAL ANALYSIS – FY 2020

Performance highlightsFY 2020 Change FY 2019

Income statement ₦’million % ₦’million

Net interest income 3,739 (43) 6,513

Non-interest revenue 48,327 10 43,992

Total income 52,066 3 50,505

Gain / (loss) on financial assets (41) (>100) 24

Operating expenses (16,364) (8) (17,699)

Profit before tax 35,661 9 32,830

Profit after tax 24,425 6 23,011

FY 2020 FY 2019Asset under Management (₦ ’million) 4,630,883 20 3,856,720

Key selected ratios FY 2020 FY 2019Cost to income ratio % 31.4 35.0

❖ Wealth business reported a total income of ₦52.1billion in FY 2020, an increase of 3% compared toFY 2019.

❖ Non-interest revenue (NIR), resulting from fundmanagement fees and other income, increased by10% to ₦48.3 billion (FY 2019: ₦44.0 billion). NIRgrowth is on account of growth in assets undermanagement driven by investment returns andcontinued savings by our clients albeit muted bythe impact of the multi-year RSA management feereduction regime.

❖ Asset under Management grew by 20% year-on-year

❖ Operating expenses declined by 8%, driven by 19%decline in other operating expenses and muted by9% growth in staff cost. Consequently, Cost-to-income ratio improved to 31.4% from 35.0% in theprior year.



OUR PRIORITIES IN 2021

WEALTH –2021 FOCUS

Collaborate with regulators and other stakeholders to develop initiatives that will entrench best practice, support industry growth and improve customer experience.

Focus on employee engagement to ensure improved employee value proposition and increased productivity.

Leverage customer insights and emerging technology to deliver refined value propositions, experiences and new products for our clients.

Deepen the level of digitization especially across clients onboarding, payments, use of robotics and artificial intelligence with the overall intent of improving transactional and processing efficiencies across our businesses.

Lorem IpsumEmployee Engagement

Lorem Ipsum Digitization

21 3 4

CollaborationCustomer Experience



GUIDANCE



CONSIDERABLE ACHIEVEMENT OF THE 2020 GUIDANCE + OUR EXPECTATIONS FOR 2021

2020 GUIDANCE VS 2020 ACTUAL AND 2021 OUTLOOK

2020 Guidance 2020 Actual

*Net interest margin = Total assets excluding derivative assets

Net interest income

10% - 15%

2021 Guidance

Return on equity 24.3%25% - 30%

AUM Growth +20%15% - 20%

Cost to income 47.4%50% - 55%

Net interest margin* 3.5%3% - 4%

Cost of risk 1.6%≤3%

CASA ratio 82.8%>75%

NPL ratio 4.0%<5%

Deposit growth +29%15% - 20%

Gross Loan growth +18%10% - 15%

20% - 25%

<55%

3% - 4%

≤3%

>75%

<5%

15% - 20%

20% - 25%

>>

>>

>>

>>

>>

>>

>>

>>

>>



QUESTIONS



APPENDIX



Stanbic IBTC Trustees Ltd

Stanbic IBTC Nominees Nigeria Ltd

Stanbic IBTCVentures Ltd

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 Insurance Ltd

Stanbic IBTC Asset Management Ltd

Stanbic IBTC Capital Ltd

Stanbic IBTC Stockbrokers Ltd

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

2020

Standard Bank increased its stake in Stanbic IBTC to 67.02%

ABOUT STANBIC IBTC HOLDINGS PLC



Group income statementGROUP INCOME STATEMENT

Change%

2020₦’million

2019₦’million

Gross earnings 0 234,446 233,808

Net interest income (5) 74,215 77,831 Interest income (12) 105,776 120,412 Interest expense (26) (31,561) (42,581)

Non-interest revenue 15 124,709 108,755 Net fees and commission revenue 1 71,190 70,393

Fees and commission revenue 0 75,151 75,034 Fees and commission expense (15) (3,961) (4,641)

Trading revenue 43 52,110 36,332 Other revenue (31) 1,409 2,030

Total income 7 198,924 186,586 Net impairment loss on financial assets >100 (9,935) (1,632)Income after credit impairment charges 2 188,989 184,954 Operating expenses 0 (94,272) (94,029)Staff costs 4 (42,143) (40,618)Other operating expenses (2) (52,129) (53,411)Profit before tax 4 94,717 90,925 Direct tax (28) (11,506) (15,890)Profit for the year 11 83,211 75,035



Group quarterly income statement GROUP QUARTERLY INCOME STATEMENT

Group Group Group Group Q4 2020 Q3 2020 Q2 2020 Q1 2020₦million ₦million ₦million ₦million

Gross earnings 51,160 56,716 65,152 61,418 Net interest income 17,958 18,708 19,032 18,517

Interest income 23,823 26,823 27,671 27,459 Interest expense (5,865) (8,115) (8,639) (8,942)

Non-interest revenue 26,256 28,657 37,157 32,639 Net fee and commission revenue 18,235 17,902 17,145 17,908

Fee and commission revenue 19,316 19,138 17,469 19,228 Fee and commission expense (1,081) (1,236) (324) (1,320)

Trading revenue 7,744 10,106 19,843 14,417 Other revenue 277 649 169 314

Total income 44,214 47,365 56,189 51,156 Net impairment loss on financial assets (2,937) (594) (4,437) (1,967)Income after credit impairment charges 41,277 46,771 51,752 49,189 Operating expenses (23,425) (22,312) (23,759) (24,776)

Staff costs (10,897) (11,339) (9,993) (9,914)Other operating expenses (12,528) (10,973) (13,766) (14,862)

Profit before taxation 17,852 24,459 27,993 24,413 Taxation (804) (3,500) (3,390) (3,812)

Profit for the period 17,048 20,959 24,603 20,601



GROUP STATEMENT OF FINANCIAL POSITION

Change%

2020₦million

2019₦million

Assets

Cash and cash equivalents 37 627,111 456,396

Pledged assets (26) 170,578 231,972

Trading assets (32) 169,655 248,909

Derivative assets 41 46,233 32,871

Financial investments >100 612,276 155,330

Loans and advances 18 632,967 535,170

Loans and advances to banks >100 7,828 3,046

Loans and advances to customers 17 625,139 532,124

Other assets 4 175,980 168,689

Property and equipment 11 30,728 27,778

Intangible assets (11) 4,640 5,232

Right of use assets (8) 2,975 3,217

Deferred tax assets 21 13,163 10,892

Total assets 33 2,486,306 1,876,456

Change%

2020₦million

2019₦million

Equity and liabilitiesEquity 25 378,601 302,229 Equity attributable to ordinary shareholders

25 371,023 296,302

Ordinary share capital 6 5,553 5,252 Ordinary share premium 17 102,780 88,181 Reserves 29 262,690 202,869 Non-controlling interest 28 7,578 5,927

Liabilities 34 2,107,705 1,574,227 Trading liabilities (25) 188,500 250,203 Derivative liabilities >100 37,382 4,343 Current tax liabilities 5 20,270 19,230 Deposit and current accounts 49 1,325,566 886,743 Deposits from banks >100 505,622 248,903 Deposits from customers 29 819,944 637,840 Other borrowings 22 112,031 92,165 Debts securities issued (36) 68,269 106,658 Provisions 6 9,354 8,860 Other liabilities 68 346,333 206,025

Total equity and liabilities 33 2,486,306 1,876,456



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.

© 2021 Standard Bank Group / Stanbic IBTC Holding PLC. All rights reserved.

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