FirstBank H1'11 Investor & Analyst Presentation
Environment
Operating
Highlights
Summary &
Strategy &
Transformation
Outlook
Risk Mgt &
Corporate
Governance
Financial
Review
Our continued focus on reducing our funding costs, coupled with
rising yields across various asset classes, drove margin expansion
Interest income mix
Non-interest revenue mix
FirstBank
Since 1894
Placements
Treasury bills Loans and advances
4.3%
3.6%
7.9%
14.1%
2.6%
2.4%
3.1%
14.0%
2.9%
2.9%
4.1%
3.1%
Commission on Insurance and
western union transfers
20.2%
21.6%
23.4%
Other income*
5.1%
5.7%
4.8%
36.5%
64.4%
71.5%
70.3%
75.4%
73.6%
39.9% 40.5%
Letters of Credit commissions
and fees
30.4% 22.9%
27.9%
82.6%
Other fees and commissions **
10.0%
1.7%
9.4%
1.0%
8.7%
1.5%
3.3%
7.0%
10.9% 10.6%
3.8%
11.2%
Remittance fees /Management
fees
24.0%
Credit related fees
18.3%
19.1%
14.9%
16.9%
37.0%
29.5%
29.2%
10.4%
27.2%
27.3%
26.7%
7.0%
9.8%
10.2%
11.6%
10.6%
9.4%
â– Commission on turnover
Q1'10
H1'10
9m'10
FY'10
Q1'11
H1'11
Q1'10
H1'10
9m'10
FY'10
Q1'11
H1'11
Asset yield and cost of liabilities
Comments
Net interest income N'bn
Net interest margin
Average yield on interest earning assets
Cost of interest bearing liabilities
9.8%
9.4%
8.6%
8.6%
8.2%
8.3%
7.1%
6.8%
6.6%
5.7%
5.7%
5.4%
5.4%
5.7%
4.5%
3.8%
Within the Bank, in line with our strategy for driving growth in non
interest income by structuring our loans differently, increasing the
velocity of the loan book, and increasing our cross sell ratio amongst
other initiatives, we:
Increased credit related fees by 122% yoy
Increased letter of credit commissions and fees by 175% yoy
At the subsidiary level, we have seen rising incomes from the
investment banking and asset management business
2.5%
2.2%
We remain focused on building each of our subsidiary businesses to
leadership positions in their respective niches
28
57
90
121
38
88
We are still focusing on various strategies to minimize our cost of funds
Q1'10
H1'10
**Investment income and recoveries
9m'10
FY'10
FirstBank H1'11 Investor & Analyst Presentation - 27/07/2011
Q1'11
H1'11
*Exchange gains/foreign exchange income, Gain on disposal of investment property, Financial advisory fees, Loss/(Profit) on disposal of property and equipment
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