Slide 0 - The Nigerian Stock Exchange

Transcription

Slide 0 - The Nigerian Stock Exchange
ACCESS BANK PLC
2015 Rights Issue
February 2015
Agenda
Overview of Access Bank
Rights Issue Rationale
© 2015 ACCESS BANK PLC
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Recognised as a leading commercial bank in Nigeria with
an extensive distribution network in Sub Saharan Africa and the UK
Access Bank Plc.
is licensed by
Awards & Recognition
Listings
Nigerian Stock Exchange
London Stock Exchange
(Eurobond)
the Central Bank of Nigeria
as an International Bank
Channels
366
1,042
11,846
Branches
ATMs
POS
Subsidiaries
Number of
Employees
Capital
Adequacy Ratio
20%
1.
7
Banking Subsidiaries
3,192
Professional staff
Best Credit
Card Product
Award 2014
Risk
Management
Award 2013
African
Banker’s
Award 2013
M&A
Winner in
Africa 2012
FT/IFC
Sustainable
Bank of the
Year 2011
Issuer Credit Rating 1
AA-
A+
A-
A+
Quoted ratings represent the Bank’s Long Term Local Ratings
Long Term Counterparty Ratings are as follows:
S & P: BBFitch: B
© 2015 ACCESS BANK PLC
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Our growth story reflects our commitment to execute our
strategy and consistent delivery on our promise…
2002
2007
2012
65th out of 89 banks
9th out of 25 banks
5th out of 21 banks
90,000 customers
600,000 customers
6.5 million customers
ROE: 25%
ROE:18%
CIR: 62%
CIR: 61%
CIR: 93%
Gross Income: ₦27.9bn
Gross Income: ₦208.3bn
Gross Income: ₦2.6bn
Loans: ₦108bn
Loans: ₦609bn
Loans: ₦4.2bn
Deposits: ₦205bn
Deposits: ₦1,201bn
Assets: ₦409bn
Assets: ₦1,745bn
Risk Ratings:
‒ S&P: BBB
‒ Fitch: BBB
‒ Agusto: A-
Risk Ratings:
‒ S&P: AA‒ Fitch: A‒ Agusto: A-
ROE: -0.9%
Deposits: ₦6.5bn
Assets: ₦11.3bn
No Risk Rating
Market Cap: ₦25bn
Number of Branches: 32
Market Cap: ₦342bn
Number of Branches:118
2nd 5-Year Plan
1st 5-Year Plan
• ₦15 billion Public Offer in 2004
• Issued ₦11.9 billion of Local Bond in 2006
© 2014 ACCESS BANK PLC
Market Cap: ₦241bn
Number of Branches: 349
• ₦136 billion Public Offer in 2007
• Issued USD350 million Eurobond in
2012
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Strong financial performance reflecting our well
executed strategy (1)
Strong Loan Growth
Solid Funding Base
CAGR’10-9m14 25.7%
CAGR’10-9m14 34.6%
92%
71%
52%
59%
50%
77%
80%
1,102
1,201
786
2010
576
82%
61%
1,056
448
84%
1,331
1,479
604
485
2011
2012
Net loans (N bn)
2013
9m'14
2010
Net loans / Deposits
110%
2011
2012
Customer deposits (N bn)
2013
9m'14
Deposits / Total Liabilities
Compelling Shareholder Returns
Improving Asset Quality
122%
114%
18.7%
18.2%
85%
8.6%
4.8%
9.0%
164
5.0%
2010
2011
NPL ratio
© 2015 ACCESS BANK PLC
Asset quality remained
strong with the NPL ratio
continuing its steady decline
Consistent improvement in
shareholders returns as
ROE increased from 4.8%
in 2010 to 18.7% in Q3’14
14.9%
60%
11.0%
The Bank maintained strong
loan growth of 33% YoY in
9m 2014 – the highest loan
growth of its peers in the
period
2012
2.7%
2.5%
2013
9m'14
NPL coverage
2010
192
2011
241
244
265
2012
2013
9m'14
Shareholders' equity
Solid funding base with
customers deposits
accounting for 82% of total
liabilities
ROAE
4
Strong financial performance reflecting our well
executed strategy (2)
Increasing Margins
High Share of Non-Interest Income
12.3%
11%
10.7%
7.7%
11.7%
13.2%
7.5%
6.9%
6.6%
44.2%
43.9%
41.1%
39.5%
32.4%
5.5%
5%
4.9%
4.5%
4%
FY'12
H1'13
FY'13
H1'14
Cost of Fund
Asset Yield
4.9%
9M'14
FY'12
NIM
H1'13
FY'13
H1'14
9M'14
The Bank maintains one
of the highest share of
non-interest revenues in
the sector
Non-Interest Income / Operating Income
Compelling Returns
Steadily Improving Efficiency
68%
66.4%
3%
2.7%
18%
17%
2.2%
3%
2.9%
18%
18.7%
H1'14
9M'14
15.5%
63.1%
61.2%
61%
FY'12
FY'12
H1'13
FY'13
H1'14
Cost-to-Income Ratio
© 2015 ACCESS BANK PLC
H1'13
FY'13
Strong loan growth has
driven a significant
increase in the Bank’s
asset yield and net
interest margin
Efficiency has steadily
improved since FY’13,
with a Cost-to-Income
Ratio (CIR) of 61.2% in
9M’14
9M'14
ROAE
ROAA
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Our corporate history is a testament to our disciplined
capital planning
With a vision of becoming one of the most respected banks in Africa,
Access Bank has grown to be a Top Five Bank in Nigeria
• Raised ₦15bn
in public issues to meet
capital requirements
• Awarded IFC Sustainable
• Raised ₦136bn
in public offerings including Bank
of the Year
a highly successful and
over-subscribed
GDR
• Successful acquisition of
• Acquisition of
Capital and Marina bank
Intercontinental Bank
• Access Bank UK is
established
• FMO becomes
• Ranked fourth largest
largest institutional investor
bank as a result of
through conversion of $15m
the acquisition
term loan
2002
2005
2006
2007
2011
• Passed CBN’s Special
Audit on Governance,
Liquidity and
Capital Adequacy
• Appointment
of Aigboje Aig-Imoukede
as MD/CEO and Herbert
Wigwe
as DMD
• Embarked on a
5 year transformation
agenda
2009
• Local bond issue of
₦11.9bn
• $150million loan stock
from Development
Finance partners
1st 5-Year Rolling Plan
2012
• Credit rating 1:
S&P: AAFitch: AAgusto: A+
GCR: A+
2013
2014
2018
• Appointment
of Herbert Wigwe to succeed retiring
• Merger with Intercontinental
MD/CEO and appointment of
Completed
Obinna Nwosu as DMD
• Post-merger integration
• Issued USD400 million
• Divestment from Nonsubordinated note
Banking Subsidiaries
• Transition into large diversified
• Designated as SiFi by CBN
banking institution
• $350mn Eurobond
2nd 5-Year Rolling Plan
3rd 5-Year Rolling Plan
Source: Bank financial reports and published unaudited management presentations.
(1) Long term local rating
© 2015 ACCESS BANK PLC
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Agenda
Overview of Access Bank
Rights Issue Rationale
© 2015 ACCESS BANK PLC
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Transaction Summary
Issuer
Access Bank PLC
Use of Proceeds
The funds raised will be used to upgrade the Bank’s information technology platforms and branch network to
enable it provide better service and further improve the working environment as well as improve its distribution
channel infrastructure to enable it provide more efficient services to clients. The funds will also be used to
augment the Bank’s working capital and support risk assets growth
Now being issued
Offer size of 7,627,639,636 (Seven billion, Six hundred and Twenty Seven million, Six Hundred and Thirty Nine
thousand, Six hundred and Thirty Six) ordinary shares of 50 kobo each
Issue Size
N52.6 billion
Method of Issue
By way of rights to existing shareholders
Provisional Allotment
One (1) ordinary share for every three (3) fully paid ordinary shares held by shareholders of the Bank.
Issue Price per Share
N6.90
Payment
In full acceptance
Opening Date
January 26, 2015
Closing Date
March 4, 2015
Underwriting
At the instance of the issuer, this issue is not underwritten
© 2015 ACCESS BANK PLC
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With significant market opportunities in sight, our focused
growth strategy would require us to proactively enhance our capital
Enhance Capital Strength
Comprehensively strengthening capital ratios
for the longer term
Sufficient headroom to grow the business and
deliver sustainable growth in targeted sectors
Pursue growth in asset book to drive
profitability while maintaining the Bank’s
moderate risk appetite
Digitisation and Improvement of the retail
channel network pivotal to customer
acquisition and retention
Build a strong buffer for regulatory
requirements
Access Bank’s Growth Strategy
•
Become the World’s Most Respected
African Bank
•
Achieve top 3 position by all financial
metrics
•
Outstanding customer experience across all
segments
•
Deployment of analytics and behavioral
segmentation to prioritize customer needs
•
Sustained and disciplined growth in chosen
markets
•
Expanded and diversified retail deposit
base
•
Continued extension of our Value Chain
Strategy leveraging on a strong technology
platform
•
Global brand recognition for excellence
Delivering superior shareholder value requires the enhancement of our Tier 1 Capital
© 2014 ACCESS BANK PLC
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Strong analysts endorsement with an average target
price of 1.1x book value
Relative Share Performance1
Key Points
Commentary
Market prices of securities on The Nigerian Stock Exchange
have dipped significantly and in many cases do not necessarily
represent the “true value” of such listed companies
120
‒
100
80
Global Macro concerns regarding oil trading dynamics
and domestic currency volatility have led to significant
capital flight from the equities markets
Access Bank’s share price is currently well below book and
intrinsic value
60
40
20
0
Jan-14
Apr-14
Access
Jul-14
GTB
Oct-14
FBNH
Zenith
Jan-15
UBA
‒
Underperforming versus the NSE ASI year to date, but
has outperformed many Tier 1 peers
‒
Current market price of ₦4.99 values the company at
c.0.44x book value of equity
‒
Rights Price of ₦6.90 represents a P/BV of 0.61x and a
P/E of 2.6x, still a significant discount to the Bank’s
intrinsic value and an attractive entry price for long term
investors
Average broker
consensus is a “buy”
with a target price of
₦11.84
Stock is currently trading
at a 126% discount to
the broker consensus
target price
Latest Broker Recommendations
16
14.00
12.95
Target Price (₦)
14
12.89
12
12.30
12.20
11.84
Median Target Price: ₦11.84
11.40
10.82
11.31
10.40
10.36
Vetiva
SBG Securities
10
8
6
4
2
0
Exotix
© 2014 ACCESS BANK PLC
BPI
BGL
FBN Capital
ARM
Chapel Hill
Imara
RenCap
CardinalStone
Source: Capital IQ, Bloomberg, Standard Bank analysis as of 12 September 2014
Note: Banks Index is composed of Access, FBN, GTB, Zenith, UBA, Diamond, Stanbic, Skye, Fidelity, and FCMB
*Unity Bank share price at RI announcement was 50 Kobo. Nigerian regulations disallow trading at a discount to the nominal value of shares
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