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ACCESS BANK PLC
2015 Rights Issue
February 2015
Agenda
Overview of Access Bank
Rights Issue Rationale
© 2015 ACCESS BANK PLC 1
Recognised as a leading commercial bank in Nigeria withan extensive distribution network in Sub Saharan Africa and the UK
Capital Adequacy Ratio
20%
Subsidiaries
7Banking Subsidiaries
Number of
Employees
3,192Professional staff
366Branches
1,042ATMs
11,846POS
Channels
Access Bank Plc. is licensed by
the Central Bank of Nigeria as an International Bank
ListingsNigerian Stock Exchange
London Stock Exchange
(Eurobond)
AA-
A-
Issuer Credit Rating 1
A+
A+
Awards & Recognition
1. Quoted ratings represent the Bank’s Long Term Local Ratings
Long Term Counterparty Ratings are as follows:
S & P: BB-
Fitch: B
African
Banker’s
Award 2013
FT/IFC
Sustainable
Bank of the
Year 2011
M&A
Winner in
Africa 2012
Risk
Management
Award 2013
Best Credit
Card Product
Award 2014
© 2015 ACCESS BANK PLC 2
© 2014 ACCESS BANK PLC 3
Our growth story reflects our commitment to execute our strategy and consistent delivery on our promise…
2002 2007 2012
Market Cap: ₦25bn
Number of Branches: 32
Market Cap: ₦342bn
Number of Branches:118
65th out of 89 banks
90,000 customers
ROE: -0.9%
CIR: 93%
Gross Income: ₦2.6bn
Loans: ₦4.2bn
Deposits: ₦6.5bn
Assets: ₦11.3bn
No Risk Rating
9th out of 25 banks
600,000 customers
ROE: 25%
CIR: 62%
Gross Income: ₦27.9bn
Loans: ₦108bn
Deposits: ₦205bn
Assets: ₦409bn
Risk Ratings:
‒ S&P: BBB
‒ Fitch: BBB
‒ Agusto: A-
5th out of 21 banks
6.5 million customers
ROE:18%
CIR: 61%
Gross Income: ₦208.3bn
Loans: ₦609bn
Deposits: ₦1,201bn
Assets: ₦1,745bn
Risk Ratings:
‒ S&P: AA-
‒ Fitch: A-
‒ Agusto: A-
Market Cap: ₦241bn
Number of Branches: 349
• ₦15 billion Public Offer in 2004
• Issued ₦11.9 billion of Local Bond in 2006
• ₦136 billion Public Offer in 2007 • Issued USD350 million Eurobond in
2012
1st 5-Year Plan 2nd 5-Year Plan
Strong financial performance reflecting our well executed strategy (1)
Strong Loan Growth Solid Funding Base
Compelling Shareholder ReturnsImproving Asset Quality
448 576 604
786
1,056
92%
52% 50%59%
71%
2010 2011 2012 2013 9m'14
Net loans (N bn) Net loans / Deposits
485
1,102 1,2011,331
1,479
61%
77% 80% 84% 82%
2010 2011 2012 2013 9m'14
Customer deposits (N bn) Deposits / Total Liabilities
11.0%9.0%
5.0%2.7% 2.5%
60%85%
110%122% 114%
2010 2011 2012 2013 9m'14
NPL ratio NPL coverage
164192
241 244 2654.8%
8.6%
18.2%14.9%
18.7%
2010 2011 2012 2013 9m'14
Shareholders' equity ROAE
CAGR’10-9m14 25.7% CAGR’10-9m14 34.6% The Bank maintained strong
loan growth of 33% YoY in
9m 2014 – the highest loan
growth of its peers in the
period
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
Solid funding base with
customers deposits
accounting for 82% of total
liabilities
© 2015 ACCESS BANK PLC 4
Strong financial performance reflecting our well executed strategy (2)
3% 2.7% 2.2% 3% 2.9%
18% 17%15.5%
18% 18.7%
FY'12 H1'13 FY'13 H1'14 9M'14
61%
68%
66.4%
63.1%
61.2%
FY'12 H1'13 FY'13 H1'14 9M'14
32.4%
44.2% 43.9%41.1% 39.5%
FY'12 H1'13 FY'13 H1'14 9M'14
Increasing Margins High Share of Non-Interest Income
Compelling ReturnsSteadily Improving Efficiency
Non-Interest Income / Operating Income
Cost-to-Income Ratio
5% 4.9% 4.5% 4%4.9%
12.3%
10.7% 11%11.7%
13.2%
7.7%6.6%
5.5%6.9% 7.5%
FY'12 H1'13 FY'13 H1'14 9M'14
Cost of Fund Asset Yield NIM
ROAE ROAA
Strong loan growth has
driven a significant
increase in the Bank’s
asset yield and net
interest margin
The Bank maintains one
of the highest share of
non-interest revenues in
the sector
Efficiency has steadily
improved since FY’13,
with a Cost-to-Income
Ratio (CIR) of 61.2% in
9M’14
© 2015 ACCESS BANK PLC 5
Our corporate history is a testament to our disciplined capital planning
Source: Bank financial reports and published unaudited management presentations.
(1) Long term local rating
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
2002 2005 2006 2007 2009 2011 2012 2013 2018
• Raised ₦15bn in public issues to meet capital requirements
• Successful acquisition of Capital and Marina bank
• FMO becomes largest institutional investor through conversion of $15m term loan
• Raised ₦136bn in public offerings including a highly successful and over-subscribed GDR
• Access Bank UK is established
• Appointment of Aigboje Aig-Imoukedeas MD/CEO and Herbert Wigweas DMD
• Embarked on a 5 year transformation agenda
• Local bond issue of ₦11.9bn
• Passed CBN’s Special Audit on Governance, Liquidity and Capital Adequacy
• $150million loan stock from Development Finance partners
• Awarded IFC Sustainable Bank of the Year
• Acquisition of Intercontinental Bank
• Ranked fourth largest bank as a result of the acquisition
• Credit rating 1:
S&P: AA-
Fitch: A-Agusto: A+GCR: A+
• $350mn Eurobond
• Merger with Intercontinental
Completed
• Post-merger integration
• Divestment from Non-
Banking Subsidiaries
• Designated as SiFi by CBN
1st 5-Year Rolling Plan 2nd 5-Year Rolling Plan 3rd 5-Year Rolling Plan
2014
• Appointment of Herbert Wigwe to succeed retiring MD/CEO and appointment of Obinna Nwosu as DMD
• Issued USD400 million subordinated note
• Transition into large diversified banking institution
© 2015 ACCESS BANK PLC 6
Agenda
Overview of Access Bank
Rights Issue Rationale
© 2015 ACCESS BANK PLC 7
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 issuedOffer 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 8
© 2014 ACCESS BANK PLC 9
With significant market opportunities in sight, our focused growth strategy would require us to proactively enhance our capital
Delivering superior shareholder value requires the enhancement of our Tier 1 Capital
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
Enhance Capital Strength
• Become the World’s Most Respected
African Bank
• Achieve top 3 position by all financial
metrics
• Continued extension of our Value Chain
Strategy leveraging on a strong technology
platform
• Global brand recognition for excellence
• Sustained and disciplined growth in chosen
markets
• Expanded and diversified retail deposit
base
• Outstanding customer experience across all
segments
• Deployment of analytics and behavioral
segmentation to prioritize customer needs
Access Bank’s Growth Strategy
© 2014 ACCESS BANK PLC 10
14.00 12.95 12.89
12.30 12.20 11.84 11.40 11.31 10.82
10.40 10.36
0
2
4
6
8
10
12
14
16
Exotix BPI BGL FBN Capital ARM Chapel Hill Imara RenCap CardinalStone Vetiva SBG Securities
Targ
et
Pri
ce (
₦)
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
Strong analysts endorsement with an average target price of 1.1x book value
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
‒ 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
‒ 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
Key PointsRelative Share Performance1 Commentary
Latest Broker Recommendations
Median Target Price: ₦11.84
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Access GTB FBNH Zenith UBA
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