presented by: aigboje aig-imoukhuede (group ceo access bank plc) october 4, 2012 nigeria: africas #...
TRANSCRIPT
Presented by:
Aigboje Aig-Imoukhuede (Group CEO Access Bank PLC)
October 4, 2012
Nigeria:
Africa’s # 1 Investment Destination
4 Reasons why you must invest in Nigeria
Africa’s Largest “Single Market”
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One of the 10 Fastest Growing Economies in the World
Nigeria’s is one of the N11 countries with a GPD growth rate of 7.2%2
Nigeria ranks as the 10th largest mobile telephoning market3 and 11th in internet
penetration globally
Robust Macroeconomic Indicators
Gross External reserves as at Sept. 5, 2012 stood at $41.8b up 18% QoQ and 27% YoY
Stable local currency driven by strong focus on FX management
Debt to GDP ratio is relatively stable at 17.9%4
Autonomous Central Bank
Inflation at 10.1% but in check and relatively stable
Steady Improvement in governance & rule of law
Uninterrupted democratic governance since 1999
Executive arm enabling conduct of fair elections
Empowered media and civil society
1 Youth is 15-24 years with a national2 The Economist Intelligence Unit 3 NCC Statistics4 Debt to GDP ratio was 17.8% in 2010 and 17.6 in 2011
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One out of every four African consumers is a Nigerian
Largely homogenous in taste and preference
Nigeria’s youth1 population is estimated to rise from 35 million today to 43 million by 2020
Trends in the Nigerian Banking Sector
Consolidation (1st wave)
Regulator-driven Consolidation (minimum capital requirement of N25bn)
Emergence of 24 banks from previous 89
Liquidity / Solvency Crisis
Industry crisis triggered by global eventsStock market collapse; significant increase in NPLsCBN Assessment of Banks (liquidity, capital adequacy & corporate governance) and subsequent intervention
A New Era of Competition
Enhanced competition (potential new foreign entrants, larger banks with increased capacity post consolidation)
Push for profitability and earnings sustainability
2005
2007
2009
2011
2012>
Major Regulatory Reforms / Consolidation (2nd wave)
M&As, nationalisation of banksImproved regulatory oversight, greater co-ordination amongst regulatorsDivestment from non-banking businesses
Dramatic Expansion
Drive to increase capital baseExpansion to other African countriesIncreasing exposure to capital market
Top 5 Banks as at 2012
Top 5 Banks as at 2005
Source: Agusto Banking Industry Reports; Access Bank analysis
Nigeria = $386mEurope = $60,100m
Nigeria = $920mEurope = $75,126m
Nigeria = $673mEurope = $34,315m
Nigeria = $1,601mEurope = $52,574m
TOP 5 BANK PROFIT BEFORE TAX (PBT) COMPARISON
5 Year CAGR ((‘05 – ’11) Nigeria = 23% Europe = -2%
Ranked top 20 in Africa and top 5 in Nigeria
Rated by Fitch, S&P and Agusto
Operates in the UK and 5 African markets
FT/IFC Sustainable Bank of the Year for Africa and Middle East
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Pick the right banking partner
Sustainable Banking for a Sustainable Future