Ecobank Transnational Incorporated : FY2020 Earnings Presentation PDF 1.27 MB

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Ecobank Group

FY 2020 Earnings Investor Presentation

23 March 2021

© Ecobank Group 2021| FY 2020 Earnings Presentation | 23 March 2021

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© Ecobank Group 2021| FY 2020 Earnings Presentation | 23 March 2021

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INTRODUCTION

Ecobank focused on its 'Execution Momentum' agenda, serving customers, and achieved a decent set of results despite COVID-19's challenges and an uncertain outlook

Ade Ayeyemi, Group Chief Executive Officer

© Ecobank Group 2021| FY 2020 Earnings Presentation | 23 March 2021

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Key Investment Highlights

1	Leading Pan-African Franchise: Strong Positioning and Preferred Partner

• • Unique footprint across 35 African countries benefitting from attractive LT macro and sector fundamentals

• • Regional leadership position as either a market leading or a top-3 bank in 16 countries

• • Preferred partner for governments and global development institutions such as the United Nations

• • "One Bank" with strong brand recognition through a substantial network of over 24 million customers, served by ~14,000 employees and 690 branches across the continent

  2	Diversified Business Model

• • Geographic diversification: UEMOA represents 30% of FY20 Revenues, AWA 28%, Nigeria 16%, CESA 27%(1)

• • Business model diversification: CIB (55% of FY20 Net revenue), CB (22%), Consumer (23%)(1)

• • Integrated technology platform eProcess enables central manufacture of products rolled out consistently across the platform

• • Recognised for innovation in African banking (Global Finance and African Banker Awards, 2020)

• • Leadership in technology adoption to drive financial inclusion. Valued partnerships with Airtel Africa, MTN, Alipay, Palm Pay: strategic ambition to access up to 100m customers digitally

• • Expansion in digital offerings with Ecobank Mobile (App & USSD) serving ~12.9m customers

• • Strong growth with value of digital transactions up 43% y-o-y to $40.0bn as of 31 December 2020

• • Captive regional payments business offers a significant opportunity to drive growth and value creation

• • Strong profitability across regions. AWA (27% ROE), UEMOA (19%), and CESA (16%).

• • Improved funding costs, ongoing cost reduction efforts and risk management have led to improved profitability in Nigeria

• • Group-wide efficiency efforts support the path to enhanced profitability

• • Strong risk management and corporate governance practices

• • Redeployment of experienced executives to key parts of the business to enhance controls

• • Robust regulatory understanding and interface led by dynamic management team

• • Regulated and compliant under Basel II/III prudential standards (provisional 9.4% Tier 1 and 12.3% Total CAR as at FY20)

• • Highly experienced management team who have implemented first phase of new strategy in 2016-18 to restore Group profitability and since driving 'Execution Momentum' aimed at growth and improved shareholder returns

• • Management successfully raised $500m in a debut Eurobond in 2019

• • Blue-chip shareholder base comprising reputable institutions - Nedbank, QNB, Arise, and PIC

• • Management in Nigeria successfully raised $300m 5-year Eurobond in Feb 2021

1. Percentages represent segment / regional contribution to Revenues. Excluding Consolidation Adjustments and Other Adjustments.

© Ecobank Group 2021| FY 2020 Earnings Presentation | 23 March 2021

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