KCB INVESTOR PRESENTATION FULL YEAR 2015 GROUP FINANCIAL … · KCB INVESTOR PRESENTATION FULL YEAR...
Transcript of KCB INVESTOR PRESENTATION FULL YEAR 2015 GROUP FINANCIAL … · KCB INVESTOR PRESENTATION FULL YEAR...
KCB INVESTOR PRESENTATIONFULL YEAR 2015 GROUP FINANCIAL RESULTS
MARCH 2, 2016
Operating economic environment 2015
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4,261 4,730 5,357 6,215GDP KShs B
Real GDP %
Current account Balance/GDP
Public Debt/GDP %
Budget Deficit/GDP %
CBR %
KBRR %
InterbankRate %
4.6 5.7 5.3 5.8*
-8.4 -8.9 -10.4 -9.6
52.5 53.5 46.3 48.6
-5.5 -5.3 -5.5 -8.2
11.0 8.5 8.5 11.5
- - 9.1 9.9
13.8 8.4 7.9 11.1
FY12 FY13 FY14 FY15
Kenya Tanzania Uganda Rwanda Burundi EthiopiaSouthSudan
FY14 6.9 5.9 5.5 2.6 9.3 8.1 -0.04
FY15e 6.6 4.9 5.9 4.7 7 7.4 1.7
FY16e 6.5 5 6 4.3 7.2 9.9 41.1
Inflation %
Source: Bloomberg*estimate
Kenya Tanzania Uganda Rwanda Burundi EthiopiaSouthSudan
FY14 90.6 1,733.0 2,771.0 689.8 1,595.1 20.2 3.0
FY15 102.3 2,149.3 3,372.0 745.0 1,554.5 21.2 18.5
Currency
Agency (2015)7.5M (2014)3.2M
Mobile Banking (2015)21.6M (2014)10.9M
Branch (2015)25.6M (2014)22.6M
134%
98%
13%
17%1%
Merchants (2015)4.8M (2014)4.1M
ATM(2015)12.9M (2014)12.8M
Branch 30%
Non Branch 70%
FY15 Transactions
Branch42%
Non branch58%
FY14 Transactions • KShs. 31B in agency transactions
in 2015 (KShs 14 B in 2014)• KShs 8.08 billion disbursed
through Inua Jamii Programme
Driving NFI through Non Branch Channels
3
Delivering through Mobile Technology
4.7 M KCB MPESA
70%
2 MKCB Mobi
30%
Number of Mobile Customers
4
Loans of KShs 9.1B ($90M) disbursed on mobile
6.7B
2.4B
2,072
KCB Mpesa (KShs)
2.4B
0.6B
5,513
KCB Mobi (KShs)
Disbursed Loans Outstanding Loans Average Loans
Loan Applications Accelerated by the Mobile
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3,527,074
150,531
2015 2014
Mobile Loan Applications
95%
47%
4%
41%
2%
7%
2015 2014
Total Loan Applications
Mobile Personal SME Micro Corporate Mortgages
2015 Achievements
New business and Product Roll out – KCB Mpesa, KCB Sahal, KCB Insurance, KCB Capital
International Credit Rating at par with the Sovereign Rating
Surpassing 10 million customer mark across the KCB Group Limited
Set up of the Group Holding Company and the KCB Bank Kenya Business
Entry into Ethiopia via Representative Office
Working with County Governments on revenue collection and Mifugo ni mali
Launch of the new KCB Brand, Purpose and ValuesSimplifying your world to
enable your progress
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OUR PERFORMANCE TO DATE
212 228
284
346
8993
97
97
4744
85
88
2026
25
27
2012 2013 2014 2015
Net loans and advances Investments in Government securities Cash and Balances with Central Banks and other Financial Institutions Other Assets
22%
Strong asset book driven by growth in advances
8
367
391
490
558
KShs B 14%
288 306 377
424
18 14
27
44
53
63
76
81
8
7
10
9
2012 2013 2014 2015
Deposits Bal.to banks and debt Equity Other Liabilities
367
391
490
558
Strong funding base driven by growth in Deposits
9
14%
12%
KShs B
Balanced Deposit Mix
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Deposits by Type 2015 Deposits by Type 2014
47% 45% 42% 42%
52% 54% 55% 55%
1% 2% 2% 2%
2012 2013 2014 2015
Corporate Retail Other
68%
4%
24%
4%
60%
6%
30%
4%
Demand
Savings
Term
Call
Efficiently Utilized Capital for Business Growth
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12.0%
14.5% 14.5% 14.5%
22.7% 22.5%
21.0%
15.4%
2012 2013 2014 2015
Min. Tier 2 Tier 2
8.0%
10.5% 10.5% 10.5%
21.3%
18.7%
17.1%
14.1%
2012 2013 2014 2015
Min. Tier 1 Tier 1
Marginal Change in Asset Quality
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1.8%
1.3%
1.8%1.4%
6.7%
8.1%
6.3%6.6%
2012 2013 2014 2015
CoR NPL Group
Stable Coverage Position of 80%
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51.8%
36.9%
56.4%
41.4%
63.8%
46.6%
85.0%
79.5%
2012 2013 2014 2015
IFRS CBK
18% Balance Sheet contribution from our Subsidiaries
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Deposits 2014Deposits 2015
Total Assets 2014Total Assets 2015
Kenya82%
Uganda4%
Tanzania4%
Rwanda3%
South Sudan
6%
Burundi1%
IBs18%
Kenya82%
Uganda4%
Tanzania3%
Rwanda3% South Sudan
7%
Burundi1%
IBs18%
Kenya75%
Uganda3%
Tanzania4%
Rwanda3%
South Sudan14%
Burundi1%
IBs25%
Kenya73%
Uganda4%
Tanzania3%
Rwanda3%
South Sudan16%
Burundi1%
IBs27%
Increase of KShs 1.2B in Earnings from our International Subsidiaries
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Profitability 2014
Revenue 2014Revenue 2015
Profitability 2015
Kenya78%
Uganda3%
Tanzania3%
Rwanda3%
South Sudan12%
Burundi1%
Kenya88%
Uganda0%
Tanzania2%
Rwanda2%
South Sudan8%
Burundi0%
Kenya81%
Uganda3%
Tanzania3%
Rwanda2%
South Sudan10%
Burundi1%
Kenya92%
Uganda0%
Tanzania1%
Rwanda1%
South Sudan6%
Burundi0%
Strong Asset Portfolio driven by Loan Growth
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KShs Millions Actual Dec-15
ActualDec-14
% Y-O-Y Change
Asset Portfolio
Cash and balances with Central Bank 35,927 47,064 -24%
Balances with other institutions 52,579 37,572 40%
Investments in Government securities 96,949 97,198 0%
Net loans and advances 345,969 283,732 22%
Fixed assets 10,592 10,351 2%
Other assets 16,078 14,420 12%
Total Assets 558,094 490,338 14%
Robust Funding Portfolio supported by Deposit Growth
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KShs MillionsActual Dec -15
ActualDec-14
% Y-O-Y Change
Funding Portfolio
Customer Deposits 424,391 377,272 12%
Balances due to other banks 23,138 14,296 62%
Other liabilities 9,182 10,404 -12%
Long-term debt 20,130 12,735 58%
Total Liabilities 476,841 414,707 15%
Share capital 3,025 3,025 0%
Reserves and premium 72,178 66,556 8%
Proposed dividend 6,050 6,050 0%
Shareholders’ Equity 81,254 75,631 7%
Total Liabilities and Equity 558,094 490,338 14%
16% Growth in Profit After Tax
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KShs MillionsACTUAL Dec -15
ACTUAL Dec -14
Y-o-Y % Change
Interest Income 56,384 47,476 19%
Interest Expense (17,148) (11,527) 49%
Net interest income 39,236 35,949 9%
Foreign exchange income 4,067 4,150 -2%
Fees and commissions 13,103 11,943 10%
Other income 2,621 3,141 -17%
Total operating income 59,027 55,183 7%
Loan loss provision(net) 2,182 3,089 -30%
Staff costs 15,311 13,993 9%
Other operating expenses 14,996 14,314 5%
Total Cost 32,489 31,396 4%
Profit before tax 26,538 23,787 12%
Tax (6,915) (6,939) 0%
Profit after tax 19,623 16,849 16%
Overview of Key Financial Ratios
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Return on Average Equity
Cost to Income
Gross NPL to Gross Loans
NPL Coverage
Debt to Equity
Non funded income to total income
Cost of funds
Net Interest Margin
Cost of risk
Loan to Deposit Ratio
Growth of Net Loans and Advances
Growth of Customer Deposits
24.0% 23.3%
48.6% 49.1%
7.3% 6.9%
71.8% 80.0%
28.8% 27.5%
36.7% 37.9%
2.9% 3.3%
8.5% 8.0%
1.7% 1.6%
72% 74%
32% 32%
26% 35%
25.0%
50.1%
6.6%
79.5%
24.8%
37.3%
3.9%
8.8%
1.4%
83.8%
22%
12%
FY14 6M15 9M15 FY15
24.2%
50.2%
6.3%
65.2%
16.8%
38%
3.2%
9.7%
1.8%
75%
25%
23%
Business Drivers
ENHANCED CUSTOMER EXPERIENCE
GROWING NFI
HARNESSING OPERATIONAL EFFICIENCIES
DEVELOP NEW & INTERNATIONAL BUSINESSES
TARGETED DEPOSIT MOBILIZATION
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• Growing customer and employee satisfaction to 85%• Embed the KCB Values
• Enhance customer relevance and value proposition• Driving channel utilization• Increasing cross sell ratio
• Technology upgrades - T24 R14 Reimplementation and Starting the Journey to a Service Oriented Architecture
• Cost containment measures across the Group
• Drive the Business Performance and sustainability of the International Businesses
• Leverage the potential for consolidation in banking sector
• Private Sector focus• Deposit mix of 75:25 LCY:FCY
STRATEGIC PARTNERSHIPS• Continued growth in the business potential with Safaricom• Leverage on National and County Government Business
Outlook Ratios
ROA 4.0%
ROE 24.0%
CTI 49.5%
NPL 5.5%
NFI 35.0%
COF 3.6%
NIM 9.0 – 9.5%
COR 1.6%
Loan Growth 12.0%
Deposit Growth 16.0%
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For further information please contact
Investor Relations departmentEmail: [email protected]
www.kcbbankgroup.com