Financial results presentation - The Vault Contents • The operating environment • Financial...
Transcript of Financial results presentation - The Vault Contents • The operating environment • Financial...
Financial results presentation
For the year ended 31 December 2012 and 3 months ended 31 March 2013
Contents
• The operating environment
• Financial analysis
o FY 2012 results analysis
o 1Q 2013 results analysis
• Business unit analysis
• Prospects and outlook
• Q & A
This presentation is based on the consolidated financial statements of Stanbic IBTC Holdings PLC and its subsidiaries. All financial
results in this presentation are presented on an International Financial Reporting Standards(IFRS) basis.
2 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Operating environment
Sola David-Borha
Chief executive officer
3 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Operating environment
Market was impacted by:
• Sustained monetary policy tightening by the
central bank;
• Improved capital market performance,
especially in the second half of 2012, which
continued in 1Q 2013. NSE ASI grew by 35%
in 2012 and 19% in 1Q 2013;
• Improved yields in government securities in
2012, but this trended downwards in 1Q
2013;
• Slow growth in private sector credit and
continued competition for better quality risk
assets;
• Ongoing economic reforms in the key
sectors of the economy.; and
• Rapidly changing regulatory environment.
Results reflect the following:
• Increased transactional volumes and
activities, with positive impact on revenue;
• Improved revenues from our capital market
related businesses attributable to the bullish
market in the second half of 2012 and in Q1
2013 ;
• Sustained growth in deposit liabilities;
• Diversified business, strong capital and
liquidity positions;
• Resolution of top 2 NPLs in the last quarter of
2012;
• Adoption of HoldCo structure in the last
quarter of 2012;
• High cost of funding due to monetary policy
tightening and wholesale funding; and
• Growth in credit impairment charges.
4 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Financial analysis
Ronald Pfende
Chief financial officer
5 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
FY 2012 results analysis
6 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
FY 12: Performance highlights
Continued growth
in revenues and
profitability
• Gross earnings; up 45% to N91.9 billion (2011: N63.4 billion)
• Net interest income; grew 21% to N33.6 billion (2011: N27.6 billion)
• Non - interest revenue; up 23% to N33.9 billion (2011: N27.6 billion)
• Total income; increased 22% to N67.4 billion (2011: N55.2 billion)
• Profit before tax; up 16% to N11.7 billion (2011: N10.1 billion)
• Profit after tax; grew 53% to N10.2 billion (2011: N6.6 billion)
Continued growth
in business
operations
• Gross loans & advances of N279.5 billion (2011: N266.1 billion)
• Deposit liabilities of N355.4 billion (2011: N287.2 billion)
• Total assets of N676.8 billion (2011: N554.5 billion)
7 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
FY 12: Performance highlights
• Net interest margin 4.96% (2011: 4.98%)
• Cost-to-income ratio 72.4% (2011: 75.6%)
• Pre tax return on average equity 14.4% (2011:12.2%)
• After tax return on average equity 10.9% (2011: 6.8%)
• Pre-tax return on average assets 1.9% (2011: 2.1%)
• NPLs/total loans 5.1% (2011: 6.7%)
• Credit loss ratio 2.5% (2011: 1.3%)
• Liquidity ratio 45.5% (regulatory minimum :30%)
• Capital adequacy 22.3% (statutory minimum: 10%)
• Earnings per share 50 kobo (2011: 30 kobo)
• Price to book 1.3x (2011: 1.9x)
Selected returns
and ratios
8 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
FY 12: Summarised group income statement
FY 2012
Nmillion
change
%
FY 2011
Nmillion
Interest income 57,818 63 35,428
Interest expense (24,264) >100 (7,786)
Net interest income 33,554 21 27,642
Non interest revenue 33,856 23 27,605
Net fee & commission revenue 25,568 39 18,388
Trading revenue 8,091 (9) 8,845
Other revenue 197 (47) 372
Operating income 67,410 22 55,247
Less: Credit impairment charges (6,895) >100 (3,349)
Operating expenses (48,789) 17 (41,792)
Profit before tax 11,726 16 10,106
Tax (1,569) (55) (3,463)
Profit after tax 10,157 53 6,643
9 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
FY12: Summarised group income statement
2H 2012
Nmillion
change
%
1H 2012
Nmillion
Interest income 29,822 7 27,996
Interest expense (13,498) 25 (10,766)
Net interest income 16,324 (5) 17,230
Non interest revenue 20,038 23 13,818
Net fee & commission revenue 14,466 30 11,102
Trading revenue 5,505 >100 2,586
Other revenue 67 (48) 130
Operating income 36,362 17 31,048
Less: Credit impairment charges (5,605) >100 (1,290)
Operating expenses (25,149) 6 (23,640)
Profit before tax 5,608 (8) 6,118
Tax (444) (61) (1,125)
Profit after tax 5,164 3 4,993
Cost-to-income ratio 69.2% 76.1%
10 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
FY 12: Group income statement quarterly analysis
4Q 2012
Nmillion
3Q 2012
Nmillion
2Q 2012
Nmillion
Q1 2012
Nmillion
Interest income 15,283 14,539 14,075 13,921
Interest expense (8,330) (5,168) (5,103) (5,663)
Net interest income 6,953 9,371 8,972 8,258
Non interest revenue 12,538 7,500 7,387 6,431
Fee & commission revenue 8,433 6,033 6,024 5,078
Trading revenue 4,046 1,459 1,259 1,327
Other revenue 59 8 104 26
Operating income 19,491 16,871 16,359 14,689
Less: Credit impairment charges (3,820) (1,785) (1,011) (279)
Operating expenses (12,962) (12,187) (12,687) (10,953)
Profit before tax 2,709 2,899 2,661 3,457
Tax 451 (895) (169) (956)
Profit after tax 3,160 2,004 2,492 2,501
Cost-to-income ratio 66.5% 72.2% 77.6% 74.6%
11 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Revenue evolution
20,447 27,642 33,554
5.28% 4.98% 4.96%
5.23% 4.38%
3.94%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2010 2011 2012
Net Interest income
Net interest margin before impairment charges on total assets
Net interest margin after impairment charges on total assets
Nmillion
Net interest income and net interest margin
CAGR (2010- 2012): 28%
52% 45%
3%
2011
40%
55%
5%
Corporate & Investment Banking Personal & Business Banking Wealth
Net interest income by business unit
2012
3.4% 3.8%
7.1% 7.6%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2012 2011
Corporate & Investment Banking Personal & Business Banking
Net interest margin by business unit • Net interest income grew by 21%, benefitting from 63%
growth in interest income chiefly on the back of
increased income form lending activities and improved
yield on government securities but the growth was
hampered by the significant growth in interest expense
driven by high cost of funding and sustained high
monetary policy rate.
• Net interest margin reduced slightly to 4.96% from 4.98%
in 2011 as a result of the high interest rate environment
and higher cost of funding especially in the corporate
segment.
• Slight decline in net interest margin in the Corporate and
Investment Banking business as well as in the Personal
& Business Banking business segments.
12 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Revenue evolution
29,594 27,605 33,856
59.1% 50.0%
50.2%
0%
10%
20%
30%
40%
50%
60%
70%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2010 2011 2012
Non- Interest revenue Percentage of total income
Nmillion
Non-interest revenue
CAGR (2010- 2012): 7%
60% 67%
75%
39% 32%
24%
1% 1% 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012
Fees & commissions Trading income Other income
Breakdown of non-interest revenue
54%
12%
34%
2011
48%
15%
37%
Corporate & Investment Banking Personal & Business Banking Wealth
Non-interest revenue by business unit
2012
• Non-interest revenue grew by 23% on the back of
increased transactional volumes and value per
transaction, steady growth within our wealth business
and gradual recovery of the capital market in the
second half of 2012 .
• Fee and commission revenue continued to be the
major driver of non-interest revenue.
• Increased contribution to non-interest revenue from
the Wealth business driven by growth in assets under
management and number of clients. PBB’s NIR
contribution improved to 15% from 12% in 2011.
13 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Revenue evolution
• Total income increased by 22% to N67.4 billion in
2012. This growth is supported by increase in
transaction volumes and activities and increased
revenue from lending activities.
• Increased contribution to total income by Wealth and
Personal & Business Banking business units from
18% in 2011 to 23% and 29% in 2011 to 35%
respectively.
• Revenue growth outpaced cost growth as we continue
to leverage our expanded network.
50,041 55,247
67,410
10,333 6,643
10,157
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2010 2011 2012
Total income Profit after tax Profit after tax / total income
Nmillion
Total income
CAGR (2010- 2012): 16%
14 16
22 20
21
17
0
5
10
15
20
25
2010 2011 2012
Total income growth Total cost growth
Growth %
Total income
44%
35%
21%
Corporate & Investment Banking Personal & Business Banking Wealth
Total income by business unit
2012 2011
53%
29%
18%
14 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Expenses evolution
• Interest expense grew significantly by over 100% to N24.3 billion. The
growth is attributable to monetary policy tightening with the resultant
increase in cost of funding as well as concentration of wholesale funding in
our deposit book.
• Operating expenses grew by 17% due to inflation related salary increases
and increased headcount of temporary staff as well as increased information
technology cost for securing competitive advantage in business efficiency.
• Cost-to-income ratio witnessed gradual improvement in 2012 as it reduced
to 72.4% from 75.6% in 2011. As we continue to leverage our expanded
footprint, with the expected increase in revenues, the cost-to-income ratio
will continue to witness a gradual decline.
• The effective tax rate was down to 13.4% in 2012 as we benefitted from tax
savings from income derived from investment in government securities.
34,476 41,792 48,789
68.6%
75.6% 72.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0
10,000
20,000
30,000
40,000
50,000
60,000
2010 2011 2012
Nmillion
Operating expenses
44% 43% 41%
12% 8% 7%
45% 49% 52%
0%
20%
40%
60%
80%
100%
2010 2011 2012
Other operating expenses Depreciation Staff cost
Breakdown of operating expenses
4,073 3,463 1,568
26.1%
34.3%
13.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2010 2011 2012
Taxation charge Effective tax rate
Nmilli
Taxation and effective tax rate
15 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
3,895
7,786
24,264
-
5,000
10,000
15,000
20,000
25,000
30,000
2010 2011 2012
Interest expense
Nmillion
Expense evolution
• Credit impairments grew by over 100% in 2012. The
increase was largely as a result of higher specific
impairment provisioning within the CIB as 3 new
corporate loans were provisioned during the year.
• Corporate lending and instalmental sales and finance
leases products jointly accounted for 65% of total
impairment charges.
• PBB accounted for a larger portion of the credit
impairment charges as we continued to take a
conservative stance against impairments in that business
unit in the light of the prevailing high interest rate
environment during 2012.
48% 52%
Corporate & Investment Banking Personal & Business Banking
Credit impairments by business unit
2012
13%
87%
2011
(2,167)
2,381
6,391
2,358
968 504
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
(4,000)
(2,000)
0
2,000
4,000
6,000
8,000
2010 2011 2012
Impairment charge on non-perfroming loans
Impairment charge on performing loans
Credit loss ratio
Nmillio
Credit impairment charges
16 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Change 2012 2011
% Nmillion Nmillion
Mortgage lending (46) 219 409
Instalmental sales and finance lease > 100 1,149 91
Cards (100) 0 41
Corporate lending > 100 3,330 421
Other loans and advances (8) 2,197 2,387
Total credit impairment charges > 100 6,895 3,349
Credit impairment charges by product
FY 12: Group quarterly statement of financial position
4Q 2012 3Q 2012 Q2 2012 Q1 2012
Nmillion Nmillion Nmillion Nmillion
Cash and balances with central banks 76,933 44,790 36,391 41,895
Trading assets 114,877 157,091 75,974 158,282
Pledged and derivative assets 26,149 25,579 27,902 23,882
Financial investments 85,757 64,963 71,159 74,872
Loans and advances 320,662 291,939 320,956 302,559
Loans and advances to banks 54,318 30,872 48,498 35,958
Loans and advances to customers 266,344 261,067 272,458 266,601
Other assets 22,771 18,909 14,749 35,466
Current and deferred tax assets 5,212 2,905 2,881 2,663
Intangible assets - 3,791 3,827 3,879
Property and equipment 24,458 24,217 23,603 23,946
Total assets 676,819 634,184 577,442 667,444
Liabilities
Derivative liabilities 772 220 295 624
Trading liabilities 88,371 104,675 106,478 164,336
Customers deposits 382,051 341,785 262,672 293,806
Deposits and current accounts from banks 26,632 25,950 16,473 23,221
Deposits and current accounts from customers 355,419 315,835 246,199 270,585
Other borrowings 66,873 55,229 53,960 40,584
Current and deferred tax liabilities 4,844 2,999 3,775 6,034
Other liabilities 48,257 39,846 63,580 76,850
Total liabilities 591,168 544,754 490,760 582,234
Equity 83,341 87,452 85,132 83,054
Non-controlling interest 2,310 1,978 1,550 2,156
Liabilities and equity 676,819 634,184 577,442 667,444
17 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
FY 12: Group statement of financial position
2012 Change 2011
Nmillion % Nmillion
Cash and balances with central banks 76,933 >100 30,074
Trading assets 114,877 73 66,476
Pledged and derivative assets 26,149 16 22,582
Financial investments 85,757 (4) 88,877
Loans and advances 320,662 6 302,771
Loans and advances to banks 54,318 18 46,051
Loans and advances to customers 266,344 4 256,720
Current and deferred tax assets 5,212 95 2,668
Other assets 22,771 >100 11,299
Intangible asset - (100) 5,036
Property and equipment 24,458 (1) 24,724
Total assets 676,819 22 554,507
Trading liabilities 88,371 40 63,173
Derivative liabilities 772 3 749
Customer and current accounts 382,051 24 299,787
Deposits and current accounts from banks 26,632 >100 12,545
Deposits and current accounts from customers 355,419 24 287,242
Other borrowings 66,873 40 47,618
Current and deferred tax liabilities 4,844 (7) 5,187
Other liabilities 48,257 (14) 56,215
Total liabilities 591,168 25 472,729
Equity 83,341 4 79,867
Non-controlling interest 2,310 21 1,911
Liabilities and equity 676,819 22 554,507
18 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Loans and advances
185.0
266.1 279.5
0.0
50.0
100.0
150.0
200.0
250.0
300.0
2010 2011 2012
Nbillion
Gross loans and advances
CAGR (2010- 2012):23%
14% 11% 10%
5% 5% 4%
73% 74% 75%
8% 10% 11%
0%
20%
40%
60%
80%
100%
2010 2011 2012
Instalmental sales and finance leasesTerm loansHome loansOverdrafts
Breakdown of loans and advances
Agriculture 3.7% Finance & Insurance
0.9% General commerce
18.1%
Manufacturing
24.3%
Oil & gas 11.5%
Transport & comm 17.6%
Consumer credit 12.8%
Govt. 1.6%
Mortgage 3.8%
Real est.& constr. 5.6%
Loans and advances by sector
• Loan book witnessed moderate growth of 5% YoY despite
increased competition for good quality credits especially in
the corporate space as well as sell down of some existing
large exposures to comply with a reduced single obligor limit
post the HoldCo restructuring in Q3 2012 and sale of eligible
assets to AMCON in 4Q 2012. Adjusting for the sell down,
loan book would have increased by 15%.
• Potential increase in annuity income as medium to long term
loans accounted for 75% of total loan portfolio.
• Well diversified portfolio supporting all sectors of the
economy.
• Increased contribution to total loan book by Personal and
business banking business unit from 35% in 2011 to 38%.
62%
38%
Corporate Investment Banking Personal & Business Banking
Loans advances by business unit
2012
65%
35%
2011
19 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Loans and advances performance
• NPLs reduced by 13% to N14.3 billion, while the ratio NPLs /total
loans improved to 5.1% from 6.2% in 2011.
• NPLs benefitted from sales of 2 eligible assets to AMCON in Q4
2012. Total consideration of N8.9 billion was received for these
assets, with total value of N12.3 billion, thus representing a 38%
discount. However, the sale impacted net interest income
positively by N417million.
• The largest NPL in the book, an oil & gas name was resolved in
2012, thus reducing the oil & gas contribution to NPL from 57.4%
in 2011 to 1.8% in 2012.
• PBB’s share of total NPLs increased to 60% from 18% in 2011.
The increase is attributable to the high interest rate environment,
which placed some strain on retail customers. PBB NPL ratio
increased to 8.2%, slight above our 7% internal guidance.
12,767 16,554 14,340
7.0% 6.2%
5.1%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2010 2011 2012
Non performing loans NPL/ total loans
Nmill
Non-performing loans and NPL ratio
Agric. 2.2% Fin. &
ins. 0.0% Gen.
comm. 21.6%
Manufacturing
23.8% Oil & gas 1.8%
Trans & comm. 14.7%
Consumer credits
9.8%
Mortgage 7.3%
Real est. & constr. 18.8%
2012
Agric. 0.1%
Fin. & ins.
2.1%
Gen. comm. 9.0%
Manufacturing
15.9%
Oil & gas 57.4%
Trans. & comm. 8.5%
Consumer credits 3.1%
Mortgage 3.7%
Real est. & constr.
0.1%
2011
Non-performing loans by sector
60%
40%
Personal & Business Banking Corporate & Investment Banking
Breakdown of NPLs by business unit
2012
18%
82%
2011
20 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Deposits and current accounts
• Deposit book grew by 24% to N355.4 billion on the
back of growing customer base as we continued to
leverage our expanded footprint, structure products
that meet customers’ needs and provide excellent
service.
• The continued tightening of the monetary policy
exerted pressure on the deposit mix. The deposit
mix was 49% in favour of low cost deposits as
against 51% achieved in FY 2011.
• Growing contribution to deposits by Personal and
Business Banking business segment.
186.1
287.2
355.4
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
2010 2011 2012
Nbillion
Deposits from customers
CAGR (2010- 2012):38%
43% 37% 39%
5% 4% 4%
7% 10% 6%
45% 49% 51%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012
Current deposits Savings deposits Call deposits Term deposits
Breakdown of deposits by product
54%
46%
Corporate & Investment Banking Personal & Business Banking
Deposit liabilities by business unit
2012
61%
39%
2011
21 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Funding, liquidity and capital
• Stable source of funding to exploit market
opportunities.
• Total assets funded chiefly from deposit liabilities.
• Liquidity ratio of 46% significantly above the 30%
statutory requirement.
• Strong capital adequacy ratio of 22% to pursue
growth opportunities and support business risks and
contingencies.
53% 52% 48%
4% 2% 2%
13% 11%
13%
10% 9%
5%
8% 11%
10%
13% 15% 23%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2011 2012
Deposits from customers Deposits from banks Trading liabilities
Other borrowings Other liabilities Equity
Funding mix
51.4%
71.4%
45.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2010 2011 2012
Liquidity ratio Statutory minimum
Liquidity ratio
32.2
20.8 22.3
31.4
19.4 20.7
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2010 2011 2012
Capital adequacy ratio Tier 1 capital adequacy ratioStatutory minimum Optimum capital
%
Capital adequacy ratio
22 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Group shareholder value
• Gradual improvement in return on average equity to 10.9% from 6.8% in 2011 despite the challenging operating
condition.
• Continued focus on improving shareholder value.
• A dividend of 10 kobo per share is proposed and a further distribution of 70 kobo in form of interim dividend will be paid
later in the year, after the subsidiaries pay dividends to the HoldCo.
84,799 82,735 81,604
11.4%
6.8%
10.9%
15.3%
12.2%
14.4%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2010 2011 2012
Shareholders' fund (average) ROaE (PAT) ROaE (PBT)
Nmillion
Average shareholders’ funds and return on equity
463.9 436.1 856.5
2.0
1.9
1.3
0.0
0.5
1.0
1.5
2.0
2.5
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
2010 2011 2012
Net asset value per share Price- to- book
kobo Times
Net asset value per share and price-to-book
23 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
1Q 2013 results analysis
24 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
1Q 13: Performance highlights
Continued growth
in revenues and
profitability
• Gross earnings; up 30% to N26.6 billion (1Q 12: N20.4 billion)
• Net interest income was flat at N8.3 billion (1Q 12: N8.3 billion)
• Non - interest revenue; up 85% to N11.9 billion (1Q 12: N6.4 billion)
• Total income; increased 37% to N20.1 billion (1Q 12: N14.7 billion)
• Profit before tax; up 37% to N4.8 billion (1Q 12: N3.5 billion)
• Profit after tax; grew 43% to N3.6 billion (1Q 12: N2.5 billion)
Continued growth
in business
operations
• Gross loans & advances of N284.1 billion (FY 2012: N279.5 billion)
• Deposit liabilities of N423.6 billion (FY 2012: N355.4 billion)
• Total assets of N884.7 billion (FY 2012: N676.8 billion)
25 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
1Q 13: Performance highlights
• Net interest margin (annualised) 5.3% (1Q 12: 6.5%)
• Cost-to-income ratio 67.0% (1Q 12: 74.6%)
• Annualised pre tax ROaE 22.3% (1Q 12:16.8%)
• Annualised after tax ROaE 14.9% (1Q 12:11.0%)
• Annualised after-tax ROaA 1.8% (1Q 12: 1.6%)
• Credit loss ratio 0.7% (1Q 12: 0.1%)
• NPLs/total loans 5.3% (FY 12: 5.1%)
• Liquidity ratio 64.1% (regulatory minimum :30%)
• Capital adequacy 18.2% (statutory minimum: 10%)
Selected returns
and ratios
26 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
1Q 13: Summarised group income statement
1Q 2013
Nmillion
change
%
1Q 2012
Nmillion
Interest income 14,666 5 13,921
Interest expense (6,411) 13 (5,663)
Net interest income 8,255 0 8,258
Non interest revenue 11,872 85 6,431
Net fee & commission income 6,968 37 5,078
Trading revenue 4,887 >100 1,327
Other income 17 (35) 26
Operating income 20,127 37 14,689
Less: Credit impairment charges (1,885) >100 (279)
Operating expenses (13,490) 23 (10,953)
Profit before tax 4,752 37 3,457
Tax (1,179) 23 (956)
Profit after tax 3,573 43 2,501
27 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Revenue evolution
47%
47%
6%
Corporate & Investment Banking Personal & Business Banking Wealth
Contribution to net interest income by business unit
Net interest income and net interest margin Breakdown of net interest income
49% 47%
4%
1Q 2012 1Q 2013
• Net interest income growth was flat in 1Q 2013 despite
5% growth in interest income as interest expense grew
by 13%. Interest expense growth rate has started
witnessing a gradual reduction as funding cost is
beginning to show signs of improvement.
• In the near term, net interest income will benefit from
improvement in funding cost as we continue to reduce
contractual expensive deposits in favour of lower priced
deposits.
• Net interest margin decreased to 5.3% from 6.5% in 1Q
2012, however, this still represent a 35bps recorded in
4Q 2012 due to the improvement in the interest rate
environment.
6,618 8,258 8,255
7.6%
6.5%
5.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
1Q 2011 1Q 2012 1Q 2013
Net interest income Net interest margin
Nmillion
28
Change 1Q 2013 1Q 2012
% Nmillion Nmillion
Interest income 5 14,666 13,921
Interest on loans & advances to
customers 3 10,572 10,290
Interest on loans & advances banks > 100 442 23
Interest on investment 1 3,652 3,608
Interest expense 13 6,411 5,663
Savings accounts 21 56 47
Demand deposits 44 157 108
Term deposits 16 5,739 4,944
Other interest bearing liabilities (18) 459 563
Net interest income (0) 8,255 8,258
Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Revenue evolution
Contribution to non-interest revenue by business unit
Breakdown of non-interest revenue
1Q 2013
• Non-interest revenue increased by 85% on the back of
a 37% growth in net fee and commission revenue and a
more than 100% growth in trading revenue.
• The growth in net fee and commission revenue is
supported by the steady growth within our wealth
business, bullish trend in the capital market in 1Q 2013
and increased transaction volumes.
• Trading revenue benefitted from increased transaction
volumes and volatility chiefly in the fixed income and
foreign exchange trading.
• 1Q 2013 was an exceptional quarter for global markets
business, with positive impact on CIB revenue.
5,766 6,431
11,872
-
2,000
4,000
6,000
8,000
10,000
12,000
1Q 2011 1Q 2012 1Q 2013
Non-interest revenue
Nmillion
58%
14%
28%
Corporate & Investment Banking Personal & Business Banking Wealth
45%
17%
38%
1Q 2012
29
Change 1Q 2013 1Q 2012
% Nmillion Nmillion
Net fee & commission revenue 37 6,968 5,078
Account transaction fees 9 895 820
Knowledge based fees and commission 35 4,538 3,374
Foreign currency service fees 3 304 293
Documentation and administration fees 34 409 305
Other fee & commission revenue >100 822 286
Trading revenue >100 4,887 1,327
Foreign exchange 30 1,456 1,124
Bond and treasury bills >100 619 154
I Interest rates >100 2,812 49
Other revenue (35) 17 26
Other non-bank revenue (35) 17 26
Total non-interest revenue 85 11,872 6,431
Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Revenue evolution
Contribution total income by business unit • Total income increased by 37% to N20.1 billion driven
principally by a significant 85% growth in non-interest
revenue.
• Increased contribution by corporate and investment
banking business unit to total income on the back of
increased trading revenue.
• Profit before tax grew by 38% to N4.8 billion, while profit
after tax increased by 43% to N3.6 billion.
• Revenue growth continued to outpace cost growth. Total
revenue grew by 37%, while total cost increased by
23%.
12,384
14,689
20,127
0
5,000
10,000
15,000
20,000
25,000
1Q 2011 1Q 2012 1Q 2013
Total income
CAGR (1Q 2011-1Q-2013):27%
Nmillion
1,530
3,457
4,752
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
1Q 2011 1Q 2012 1Q 2013
CAGR (1Q 2011-1Q-2013) 76%:
Nmillion
Profit before tax
1,061
2,501
3,573
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1Q 2011 1Q 2012 1Q 2013
Profit after tax
CAGR (1Q 2011-1Q-2013): 84%
Nmillion
54%
27%
19%
Corporate & Investment Banking Personal & Business Banking Wealth
1Q 2013 1Q 2012
46%
35%
19%
30 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Expense evolution
• Interest expense grew by 13% as funding cost is
witnessing improvement as a result of improvement
in deposit mix.
• Operating costs grew by 23%, driven by a 22% and
24% growth in staff costs and other operating
expenses respectively. Staff cost was affected by
growth in headcount of non-full time staff and sales
agent to ensure better service for our customers,
while other operating expenses were impacted by the
increase in information technology for business
efficiency, premises expenses and increased AMCON
sinking fund contribution.
• Continued improvement in cost-to-income ratio as the
ratio reduced to 67% from 75% in 1Q 2012.
1,135
5,663
6,411
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1Q 2011 1Q 2012 1Q 2013
Interest expense
Nmillion
9,859 10,953 13,490
80% 75%
67%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1Q 2011 1Q 2012 1Q 2013
Operating expenses Cost-to-income ratio
Nmillion
Operating expenses and cost-to-income ratio
Breakdown of operating expenses
Change 1Q 2013 1Q 2012
% Nmillion Nmillion
Staff costs 22 5,910 4,855
Salaries and allowances 22 5,910 4,8558
Other operating expenses 24 7,580 6,098
Depreciation 0 875 872
Information technology 82 1,088 599
Marketing and advertising 2 424 416
Premises and maintenance 27 1,179 929
Travel and Transportation 15 306 267
NDIC deposit insurance 51 519 343
AMCON sinking fund 69 814 481
Professional fees 20 1,046 874
Others 1 1,329 1,317
Total operating expenses 23 13,490 10,953
31 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Expense evolution
• Credit impairment charges grew in excess of 100% to N1.9 billion. The significant growth in impairment charges
is attributable to 2 new classified credits in the business banking segment of Personal and Business banking
unit.
• We continued to take a conservative stance to provisioning in the Personal & Business Banking (PBB) business
due to the high interest rate environment.
• Credit loss ratio grew to 0.7% from 0.1% in 1Q2012 as a result of the growth in credit impairment charges.
537
399
1,228
458
-120
657
0.9%
0.1%
0.7%
0.0%
0.1%
0.2%
0.3%
0.4%
0.5%
0.6%
0.7%
0.8%
0.9%
-200
0
200
400
600
800
1,000
1,200
1,400
1Q 2011 1Q 2012 1Q 2013
Net specific credit impairment charges Portfolio credit impairment charges
Credit loss ratio
Credit impairment charges & credit loss ratio
Nmillion
32 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Breakdown of credit impairment charges
Change Q1 2013 Q1 2012
% Nmillion Nmillion
Mortgage lending >100 124 (72)
Instalmental sales and finance lease (48) 189 363
Cards 100 (42) (21)
Corporate lending > 100 418 97
Other loans and advances >100 1,196 (88)
Total credit impairment charges > 100 1,885 279
Q1 13: Group statement of financial position
Q1 2013 Change Q1 2012
Nmillion % Nmillion
Cash and balances with central banks 59,421 (23) 76,933
Trading assets 260,362 >100 114,877
Pledged and derivative assets 24,127 (8) 26,149
Financial investments 110,448 29 85,757
Loans and advances 351,592 10 320,662
Loans and advances to banks 82,391 52 54,318
Loans and advances to customers 269,201 1 266,344
Current and deferred tax assets 5,565 7 5,212
Other assets 49,226 >100 22,771
Property and equipment 23,702 (3) 24,458
Total assets 884,713 31 676,819
Trading liabilities 158,407 79 88,371
Derivative liabilities 368 (52) 772
Customer and current accounts 507,883 33 382,051
Deposits and current accounts from banks 84,287 >100 26,632
Deposits and current accounts from customers 423,596 19 355,419
Other borrowings 52,080 (22) 66,873
Current and deferred tax liabilities 6,379 32 4,844
Other liabilities 69,791 34) 48,257
Total liabilities 794,908 45 591,168
Equity attributable to ordinary shareholders 87,129 5 83,341
Non-controlling interest 2,676 16 2,310
Liabilities and equity 884,713 31 676,819
33 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Loans and advances
Contribution to loans & advances by business unit • Gross loans and advances increased marginally by 2%
quarter-on-quarter and 3% year-on-year to N284.1
billion.
• We took a conscious decision to slow down loan growth
in the Personal and Business Banking due to the high
interest rate environment. Products such as mortgage
and instalmental sales and finance lease were affected
by the decision.
• Corporate loan book was affected by the sustained
competition for good quality credits and sell down of
large performing existing loans to comply with the single
obligor limit .
277.0 283.5 276.3 279.5 284.5
0.0
50.0
100.0
150.0
200.0
250.0
300.0
1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013
Quarterly gross loans and advances
Nbillion
Breakdown of gross loans and advances
61%
39%
Corporate & Investment Banking Personal & Business Banking
1Q 2013
62%
38%
1Q 2012
34
Change 1Q 2013 FY 2012
% Nmillion Nmillion
Gross loans and advances 2 284,482 279,473
Mortgage lending 2 10,817 10,571
Instalmental sales and finance leases (4) 28,533 29,678
Overdrafts 3 30,365 29,616
Term loans 2 214,767 209,608
Provisions 16 (15,281) (13,129)
Specific credit impairments 16 (10,782) (9,287)
Portfolio credit impairments 17 (4,499) (3,842)
Net loans and advances 1 269,201 266,344
Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Loans and advances performance
Contribution to NPLs by business unit • The group’s non-performing loan book grew by 5% in
the first 3 months of 2013 to N15.1 billion. The increase
is attributable primarily to the newly classified loans in
the Personal and Business Banking business unit.
• The ratio of non-performing loans to total loans
deteriorated slightly to 5.3% from 5.1% in 4Q 2012. We
are committed to ensuring that these loans are resolved
in the shortest possible time. The coverage ratio for
non-performing loans improved to 100.4% from 92% in
4Q 2012.
• Increased contribution to NPLs by Personal & Business
Banking business unit.
Breakdown of non-performing loans
18.4 23.4 26.4 14.3 15.1
6.6%
8.3%
9.6%
5.1%
5.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013
Non-performing loans NPLs/ Total loans
Non-performing loans and NPL ratio
Nbillion
Change 1Q 2013 FY 2012
% Nmillion Nmillion
Overdrafts (18) 643 788
Term loans (5) 9,880 10,353
Instalment sales and finance leases 62 3,469 2,147
Mortgage 1 1,059 1,052
Total non-performing loans 5 15,051 14,340
38%
62%
Corporate & Investment Banking Personal & Business Banking
1Q 2013
40%
60%
1Q 2012
35 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Deposits and funding mix
• Deposit liabilities from customers stood at N423.6 billion
in 1Q 2013. This represents a 57% and 19% increase
over the N270.6 billion and N355.4 billion recorded in 1Q
2012 and 4Q 2012 respectively.
• The growth in deposit book is driven by our enlarged
network, ability to structure products that meet
customers’ needs and service excellence.
• The deposit mix improved as the ratio of low cost and
stable deposits increased to 55% from 49% at the end of
4Q 2012.
• We are committed to leveraging our expanded network,
our brand and service excellence to increase our share
of low cost deposits.
Deposit liabilities by business unit
270.6 246.2
315.8
355.4
423.6
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013
Quarterly deposit liabilities
Nbillion
Change Q1 2013 FY 2012
% Nmillion Nmillion
Personal & Business Banking 11 182,477 164,031
Current deposits 16 89,094 76,793
Savings deposits 8 16,388 15,116
Call deposits 80 3,230 1,799
Term deposits 5 73,765 70,323
Corporate & Investment Banking 26 241,119 191,388
Current deposits 47 90,584 61,731
Call deposits 47 29,976 20,377
Term deposits 10 120,559 109,280
Total deposits 19 423,596 355,419
42% 39% 33% 43% 39%
4% 4% 4%
5% 5%
8% 6%
8%
11% 13%
46% 51% 55% 41% 43%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1Q 2013 4Q 2012 3Q 2012 2Q 2012 1Q 2012
Demand deposits Savings deposits Call deposits Term deposits
Breakdown of deposit liabilities
36 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Business segment performance
review
37 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Corporate and Investment
Banking
Victor Williams Group Head, CIB
38 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
FY 12: Summarised financial statement and selected ratios
• Net interest income benefitted from improved yields in
investment securities and income form lending activities
but was adversely affected by the increasing funding
costs, with the resultant margin compression.
• Non-interest revenue benefitted from growth in holdings
under custody, increased transaction volumes and
activities, improved performance of the capital market in
2H 2012, which positively affected revenues of our
custody and stock-broking businesses.
• Total income was adversely impacted by the growth
credit impairment charges. 3 new corporate names were
classified during 2012, which were reversed in Q1 2013.
• Increased contribution from transactional products and
services business segment to total income, a function of
our growing relationships and increased transaction
volumes.
2012
Nmillion
change
%
2011
Nmillion
Net interest income
13,496
(5)
14,272
Non-interest revenue
16,334
9
15,009
Total income
29,830
2
29,281
Impairment charges
(3,329) >100
(419)
Operating expenses
(17,014)
16
(14,615)
Profit before tax
9,487
(33)
14,247
Loans & advances
174,418
1 173,015
Deposit liabilities
191,388
9 176,034
Net interest margin % 3.4 3.8
NIR to total income % 54.8 51.3
Cost to income ratio % 57.0 49.9
NPL/total loan ratio % 3.3 8.6
33%
43%
24%
Investment banking Transactional products and services Global markets
Contribution to total income by business segment
33%
30%
37%
2011 2012
39 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Key achievements in 2012
• Maintained market leadership in stock broking, investment banking, global markets as well as
custody business.
• Strong growth in assets under custody by over 100% to close at N2.1 trillion ($13.6billion) in 2012,
with positive impact on revenue.
• High trade and transactional volumes with positive impact on non-interest revenue.
• Resolution of top NPLs improved asset quality.
• Stock broking business appointed as the sole stockbroker to the Federal Government.
• Key awards and accolades received in 2012 include:
o Best Broker Dealing Firm 2012, The Nigerian Stock Exchange
o Best Broker in Nigeria 2012 , EMEA Finance
o Best Investment Bank in Nigeria 2012, EMEA Finance Banking Award
o Best Bank in Africa 2012, Euromoney Real Estate Award
o Best Custodian in Nigeria 2012, Global Investor
• Ranked 8th position in 2012 KPMG Customer Satisfaction Survey, an improvement from 17th
position in 2011.
40 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
1Q 13: Summarised financial statement and selected ratios
• CIB business witnessed a significant growth in total
income driven by an increase in non-interest revenue.
• Non-interest revenue benefitted from a 26% growth in
net fee and commission revenue and more than 100%
growth in trading revenue.
• Net fees and commissions benefitted from increased
transaction volumes and activity, bullish trend in capital
market which positively impacted the revenues of our
stock broking, and custody businesses. Trading revenue
benefitted from increase in transaction volumes and
volatility in the fixed income and foreign exchange
markets.
• Revenue growth outpaced cost growth resulting in
improved cost-to-income ratio to 42%.
• Continued growth in deposit liabilities.
• Loan book was flat as a result of sell down of existing
performing loan to comply with single obligor limit.
1Q 2013
Nmillion
chang
e
%
1Q 2012
Nmillion
Net interest income
3,906
1
3,861
Non-interest revenue
6,936
>100
2,908
Total income
10,842
60
6,769
Impairment charges
(418)
>100
(97)
Operating expenses
(4,580)
17
(3,899)
Profit before tax
5,844
>100
2,773
1Q 2013 FY 2012
Nmillion Nmillion
Gross loans & advances
174,949
0
174,418
Deposit liabilities
241,203
26
191,388
Credit loss ratio % 0.2 0.1
Cost-to-income ratio % 42.2 57.6
NPL to total loan ratio % 3.4 3.3
Contribution to total income by business segment
18%
41%
41%
Investment banking Global markets Transaction products & services
1Q 2013
26%
42%
32%
1Q 2012
41 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Looking ahead
• Continue to
o maintain market leadership in key areas of competitive advantage in investment banking, stock
broking, custody and global markets.
o focus on client engagement, execution and winning mandates.
o grow low cost and stable deposits to improve margins.
o focus on operational and cost efficiency.
o grow the asset book responsibly.
o focus on transactional products and services franchise, specifically franchise collections and
electronic banking.
• Thought leadership – actively participating in developing and deepening the Nigerian capital market
and infrastructure financing .
• Grow market share of trade finance through suitable trade finance model that meets the needs of
customers.
• Cross- selling of products within the Stanbic IBTC Group.
• Cross border leverage of the Standard Bank Group - one global CIB.
42 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Personal & Business Banking
Obinnia Abajue
ED, PBB
43 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
FY 12: Summarised financial statement and selected ratios
• Total income was driven by growth in loan book and
increased transaction volumes and activities, a
function of our enlarged branch network.
• Revenue negatively impacted by growth in
impairment charges attributable to conservative
stance to impairment as a result of the high interest
rate environment.
• Reduction in loss before tax by 47% as revenue
growth outpaced cost growth.
• Strong contribution to revenue from Business
banking business segment.
• Deterioration in asset quality due to the high
interest rate environment, which affected customer
repayment ability.
2012
Nmillion
change
%
2011
Nmillion
Net interest income
18,374
46
12,564
Non-interest revenue
5,154
53
3,376
Total income
23,528
48
15,940
Impairment charges
(3,566)
22
(2,930)
Operating expenses
(25,194)
10
(22,831)
Loss before tax
(5,232)
(47)
(9,821)
Loans & advances
105,055
13
93,067
Deposit liabilities
164,031
48
111,207
Net interest margins %
7.1
7.6
Cost-to-income ratio %
107.1
143.2
NPL to total loan ratio %
8.2
2.9
30%
59%
11%
Personal Banking Business Banking HNIs
2012
Contribution to total income by business segment
36%
53%
11%
2011
44 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Retail strategy – Moving in the right direction!
Key indicator FY2010 FY 2011 FY 2012 1Q 2013
Total income (Nmillion) 11,773 15,940 23,528 5,496
Total deposits (Nmillion) 82,091 111,207 164,031 182,477
Loans and advances (Nmillion) 56,693 89,592 105,055 109,533
Number of accounts 250,408 375,606 594,191 751,155
Number of branches 141 171 177 178
Number of profitable branches N/A 62 66 88
Number of ATMs 200 185 249 262
Number of PoS N/A N/A 4,798 5,071
Awards /Recognition Ranked 4th in
retail business
segment in the
KPMG’s
Customer
Satisfaction
survey
Ranked 3rd in
retail
business
segment in
the KPMG’s
Customer
Satisfaction
survey
Ranked 3rd in
retail and SME
business
segments in
the KPMG’s
Customer
Satisfaction
survey
Ranked 3rd in
retail and SME
business
segments in
the KPMG’s
Customer
Satisfaction
survey
45 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Key achievements in 2012
• Growing loan book despite the testing operating environment. Grew loan book by 13%.
• Growth in transactional volumes and activities, with positive impact on revenue.
• Achieved a 48% growth in deposit liabilities with higher low cost and stable deposits.
• Continued growth in the number of accounts and clients, a function of the expanded footprint
Acquired more than 230,000 clients in the personal banking and small and medium scale
enterprises (SME) business in the year.
• Successful launch of mobile money payment solution with over 700,000 clients within one year and
the first deposit money bank to partner with all mobile telephone operator.
• Improved the intuitiveness and functionality of the Internet Banking platform to make it more user-
friendly.
• Grew number of ATMs by 35% to 249 and continued to achieve excellent uptime in excess of 99%.
• Maintained the 3rd position in the KPMG Professional customer satisfaction survey.
46 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
1Q 13: Summarised financial statement and selected ratios
• Total income grew by 8% on the back of a 54%
growth in non-interest revenue. Net interest income
was down by 5% on the back of lower yields on
government bonds.
• Growth in credit impairment charges as a result of a
one-off classification of two new credits.
• Operating cost was impacted by increase in
headcount for branch operations and on sales
agent .
• Marginal growth in loan book attributable to the high
interest rate environment.
• Deterioration in asset quality in Q1 2013 in the
business banking business segment as a result of
the 2 newly classified NPLs.
1Q 2013
Nmillion
change
%
1Q 2012
Nmillion
Net interest income
3,837
(5)
4,027
Non-interest revenue
1,659
54
1,079
Total income
5,496
8
5,106
Impairment charges
(1,467)
>100
(182)
Operating expenses
(7,374)
10
(5,611)
Loss before tax
(3,345)
31
(687)
1Q 2013 FY 2012
Nmillion Nmillion
Gross loans & advances
109,533
4 105,055
Deposit liabilities
182,477
11
164,031
Credit loss ratio % 1.5 0.2
Cost-to-income ratio % 134.1 109.9
NPL to total loan ratio % 9.4 8.2
41%
49%
10%
Personal banking Business banking High networth individuals
1Q 2013
Contribution to total income by business segment
38%
51%
11%
1Q 2012
47 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Looking ahead
• Continue to
o focus on growing our client base across all our lines of businesses with particular attention to
personal banking and SMEs.
o Focus on our costs to reverse the cost direction and improve operating efficiency as we
approach scale.
o focus on improving asset quality to bring NPL ratio down to between 5-7% internal guidance.
o grow the asset book responsibly.
• Increase market share in mobile and electronic channels solutions.
• Continued improvement in deposit mix with continued reduction of cost of funding.
• Improve service excellence and maintain or improve our ranking in the KPMG Customer
Satisfaction survey.
• Cross- selling of products within the Stanbic IBTC Group.
48 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Wealth
49 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
FY 12: Summarised financial statement and selected ratios
• Increased revenue as a result of growth in assets
under management, number of retirement savings
accounts and the bullish trend in the capital
market in the second half of 2012.
• Increase in operating expenses due to the
regulatory induced investment in technology to
capture clients’ biometric.
• Improved yield in investment securities, with
positive impact on interest income
2012
Nmillion
change
%
2011
Nmillion
Net interest income
1,684 >100
806
Non-interest revenue
12,368 34
9,220
Total income
14,052 40
10,026
Operating expenses
(6,581) 51
(4,346)
Profit before tax
7,471 32
5,680
Assets under
management (Nmillion)
990,881 42
699,961
Retirement savings
accounts (number)
1,054,525 12
939,173
Cost-to-income ratio (%) 46.8 43.3
Return on equity (%) 52.6 43.6
15%
84%
1%
Asset management Pension management Trusteeship
Contribution to total income by business segment
2012
19%
81%
2011
50 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Key achievements in 2012
• Achieved record assets under management of N990.88 billion (US$6.19 billion) to maintain position
as the largest investment management business and number one wealth manager in Nigeria with
Stanbic IBTC Asset Management crossing the N100 billion mark in assets under management for
the first time.
• Crossed the one million retirement savings account (RSA) mark in the pension business during the
year.
• Exceeded expectations by breaking even and banking a profit in Stanbic IBTC Trustees Limited
(SITL) in its first year of operation.
• Deployed the inclusion of RSA services on the Stanbic IBTC Bank ATMs.
• Commenced the mark-to-market valuation of the bond portfolio of our fixed income mutual funds in
line global best practice.
• Awarded the Pension Fund Administrator (PFA) of the year by the Leadership Newspaper Group
Limited.
• Pioneered the launch of an Umbrella Fund (with three sub-funds).
• Commenced a 24-hr multilingual call centre to attend to the needs of our clients.
51 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
1Q 2013: Summarised financial statement and selected ratios
• Continued growth in assets under management
and number of clients and the bullish trend in the
capital market in Q1 2013 impacted revenue
positively.
• Profit before tax grew significantly by 64% to N2.3
billion, while profit after tax increased by 63% to
N1.6 billion.
• Assets under management crossed the N1trillion
mark and grew by 8% in the first 3 months of
2013.
Q1 2013
Nmillion
change
%
Q1 2012
Nmillion
Net interest income 512 38
370
Non-interest revenue
3,277 34
2,444
Total income
3,789 35
2,814
Operating expenses
(1,536) 6
(1,443)
Profit before tax
2,253 64
1,371
Assets under
management (Nmillion)
1,068.73 8
990.88
Retirement savings
accounts (number)
1,094,870 4
1,054,525
Cost-to-income ratio
46.8%
43.3%
16%
83%
1%
Asset management Pension management Trusteeship
Q1 2013
Contribution to total income by business segment
14%
86%
0%
Q1 2012
52 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Looking ahead
• To launch two new funds in the alternative asset class.
• Identification of new markets and getting a larger share of the existing business by intensifying
relationships with State Governments & leading Asian businesses at the highest level in the
pension business.
• Focus on service quality and greater accessibility to clients by building a culture of service and
being customer centric.
• Continue to focus on growing assets under management and number of both retail and institutional
clients.
• Enhancement of visibility of Stanbic IBTC Asset Management to foreign investors seeking Nigerian
exposure and the creation of an alternative investment desk/unit.
• Mining of embedded potential within the group for cross-selling and inter-generational wealth
transfer.
53 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Prospects and outlook
Sola David-Borha
CEO, Stanbic IBTC Holdings PLC
54 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Key strategic imperatives
Our core strategy to build a scalable domestic universal banking franchise remains unchanged.
• Provide clients with end-to-end financial solutions to meet their banking, financing and wealth
management needs.
• Capitalise on and maintain our market leadership position in our areas of competitive advantage in
Investment banking, Stock broking, Global markets, Custody and Wealth Management.
• Leverage our expanded points of representation to expand our share of wallet within Personal &
Business Banking with a key focus to improve our deposit mix.
• Focus on trade & commercial banking to further grow our annuity income.
• Leverage technology to grow our cash management capabilities and broaden our market
penetration.
• Continue to build the Stanbic IBTC brand synonymous with integrity, excellent service and
reliability.
• Leverage the China and emerging market franchise of Standard Bank to capture cross-border
opportunities.
• Continue to grow our people.
55 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
2013: Looking ahead
• Continue to consolidate investment in infrastructure and sweat the assets we have invested in.
• Focus on growing our demand deposit ratio from the current 55% as at end Q1 2013.
• Financial inclusion – Use mobile banking license and Non-interest banking window to expand
customer base and market share.
• Cross sell – maximizing our share of wallet from every client interaction.
• Customer service – ensuring every client interaction is a memorable experience.
• Enhance operational efficiency through cost management & control.
• Diversify revenue streams to increase contribution from transactional income.
• Brand awareness - Appropriate utilization of marketing budget to improve retail brand in market.
• Raise Tier 2 capital up to $150 million in 2013.
We therefore expect:
o Cost to income ratio to stabilise and improve to below 70%.
o Loans and advances - grow by 15% YoY by end 2013 .
o Deposit – grow by 25% YoY by end 2013.
o Our Wealth businesses to continue to be leading players in both the pension and non-pension fund
management areas.
56 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation
Q & A
57 Stanbic IBTC FY 2012 & 1Q 2013 financial results presentation