FirstBank H1'11 Investor & Analyst Presentation
Summary &
Outlook
Strategy &
Transformation
Risk Mgt &
Corporate
Governance
Financial
Review
Operating
Environment
Highlights
We have realised a number of achievements recently across our
strategic priorities
Financial Priorities
Non-Financial Priorities
1
2
Priorities
Fees & commissions increase: Significantly increase
revenue from non-interest income sources
Selective LAD creation: Selectively and prudently grow
loan portfolio in key sectors and shift mix towards assets
with higher (risk adjusted) total yield
3
Pricing optimisation: Implement strong risk-based
pricing regime and manage revenue 'leakages'
4
LO
Low cost deposit liability generation: Drive strong low-
cost current and savings account (CASA) deposit liability
generation
5
OPEX containment: Contain OPEX growth rate at level
sufficiently below revenue growth rate
6
7
8
9
10
Service excellence: Make FirstBank renowned for fast
and friendly service, without sacrificing processing quality
or increasing transaction costs
Credit quality/process excellence: Improve speed
/quality of credit decisions and effectiveness of end-to-end
credit process from origination to recovery
Brand transformation: Significantly enhance FirstBank
brand perceptions and drive business results via targeted
campaigns
Talent management: Build a superior workforce at
FirstBank by attracting, developing, and retaining the best
industry talent
Performance management: Align individual incentives
with enterprise/shareholder priorities and ensure
accountability for commitments
.
•
•
•
Recent Progress
FirstBank
Since 1894
Robust growth from new fees (e.g., Retail account
maintenance) and increased fee-yielding businesses (e.g., IBG
crude oil)
Impressive half-year LAD growth of 13%; even higher when
substitution of recalled loans to subsidiaries are taken into
account
Surgical acct-level loan re-pricing performed for IBG/CBG with
general loan by product for Retail (June); continued emphasis
on COT leakage with new targets by SBU
Healthy Retail deposit growth (15% for 1H11) with favorable
mix shift away from term and towards current/savings; best
cost of fund profile of peer banks
Turn-around/restructuring of loss-making branches ongoing
with staff mix optimisation (contract/core, grade level) to
function; channel migration yielding 60% ATM action mix
65% reduction in account-opening, customer service
productivity up by 30%, 80% fewer regulatory exceptions
(CPC-enabled branches)
Continued bank-wide credit capability building with
aggressive training for relationship managers, 70%
improvement in retail loan application times enabled by CPC
Prominent new campaigns launched - eg., 'Did you know',
employee brand engagement 'Know your Brand'; strong
social media drive/responses
Launch of new competency framework - expected to have
strong bank-wide impact, major milestones in culture change
initiative (e.g., town hall meetings etc)
Continued development of key tools (e.g., customer
profitability), launch of Oracle-based MIS portal, scorecards
refined to emphasize revenue, profitability
FirstBank H1'11 Investor & Analyst Presentation - 27/07/2011
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