Fidelity Bank Plc · NSENG:FIDELITYBK

Fidelity Bank — FY2021 Earnings Presentation

30 slides from Fidelity Bank's earnings presentation, 2022

  1. Slide 1: Fidelity Bank Investor Presentation

    Fidelity Bank Investor Presentation Audited Financial Results for the 12 months ended December 31, 2021

  2. Slide 2: Disclaimer

    Disclaimer Please read the following before continuing: This presentation is based on Fidelity Bank Plc (‘Fidelity’ or ‘the Bank’) audited financial statements for the period ended 31 December 2021. Aside the extracts from the published financial statements, Fidelity has obtained some information fr

  3. Slide 3: Content

    Content Section Page 1. Overview of Fidelity Bank 5 2. Operating Environment 10 3. Financial Review 13 4. 2022FY Guidance 29 3

  4. Slide 4: Virtually All You Need To Keep Enjoying Netflix

  5. Slide 5: Overview of Fidelity Bank

    Overview Operating Environment Financial Review Guidance Business Segment > 250 Business Offices 23.0% > 6.5m+ Customer Accounts Revenue 44.7% 32.3% Our Vision: > 2,974 To be number 1 in every market we serve and for every branded Professional Staff products we offer 13.5% > 135 Call Centre Agents P

  6. Slide 6: Robust risk management is at the core of Fidelity Bank operations

    Overview Operating Environment Financial Review Guidance Robust risk management is at the core of Fidelity Bank operations Three-tiered approach for enterprise-wide risk management Level 1 Board of Directors Board/Executive Mgt. oversight Board Finance & General Board Corporate Board Audit Committee

  7. Slide 7: Impressive performance amid challenging environment

    Overview Operating Environment Financial Review Guidance Impressive performance amid challenging environment Gross Earnings Customer Deposits CAR 21.6% 19.2% 193bps N250.8bn N2,024.8bn 20.1% Net Fee Income Net Loans & Advances NPL 65.6% 25.1% 91bps N38.6bn N1,658.4bn 2.9% Operating Expenses Total As

  8. Slide 8: Deepening strong growth in NII and customer reach through Digital Banking

    Overview Operating Environment Financial Review Guidance Deepening strong growth in NII and customer reach through Digital Banking Mobile/Online Customers # NIP Value (N’bn) E - Banking Transaction #’Mn 21.5% YTD > 3.6m+ 72% 13,148 Mkt Share 63.6% 263.6 % Total Trnx 90% 7,659 161.1 Debit Cardholders

  9. Slide 9: Operating Environment

    Fidelity

  10. Slide 10: Nigerian economy: real GDP growth and inflation

    Overview Operating Environment Financial Review Guidance  The Nigerian economy sustained QoQ real GDP growth from Q4 Real GDP Growth 2020. GDP grew by 3.98% in Q4 compared to 4.03% in Q3 2021 5.01% (Annual Real GDP was 3.40% in 2021 Vs. -1.92% in 2020). 4.03% 3.98% 0.11% 0.51%  Agriculture, Trade,

  11. Slide 11: Key regulatory and policy changes

    Overview Operating Environment Financial Review Guidance Key regulatory and policy changes  MPR retained at 11.5% and the asymmetric corridor  NNPC to revoke the licences of non-operating remain unchanged at +100/-700bps. modular refineries and issue new licences to investors  CBN issued regulato

  12. Slide 12: Financial Review

    P Fidelity

  13. Slide 13: Financial Performance Highlights - SCI

    Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SCI Summary of Income Statement  Gross earnings increased by 21.6% YoY driven by N’million 2020FY 2021FY % VAR a combination of 60.3% growth in non-interest revenue (NIR) and 15.2% increase in interest and G

  14. Slide 14: Driving sustainable and improving earnings with non-interest revenue

    Overview Operating Environment Financial Review Guidance Driving sustainable and improving earnings with non-interest revenue Gross Earnings (N’bn) Key drivers of NIR: % Contribution Double-digit growth across key NIR lines 6% 2021FY 21.6% 23% % Growth 5% 250.8 18% 60.3% 47.2 206.2 31% 34% 2020FY 9%

  15. Slide 15: Net Interest Margin Analysis

    Overview Operating Environment Financial Review Guidance Net Interest Margin Analysis Avg. Yield on Earnings Assets  NIM dropped to 4.7% from 6.3% in 2020FY due to a combination of lower yields on earning assets and increased funding cost. 10.7% 10.1%  Drop in avg. yield on earning assets was led

  16. Slide 16: Consistent drop in OPEX translates to improved CIR

    Overview Operating Environment Financial Review Guidance Consistent drop in OPEX translates to improved CIR currently at 64.9% (2020FY: 65.1%) OPEX dropped by 0.2% YoY Key drivers of OPEX: % Contributions CIR N’million 2020FY 2021FY % Growth Staff Cost 25,367 23,470 -7.5% Regulatory Cost 17,399 22,7

  17. Slide 17: Financial Performance Highlights - SFP

    Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SFP Statement of Financial Position  Growth in total assets is skewed towards earning N’million 2020FY 2021FY VAR % VAR assets which grew by 21.1% compared to 15.4% Total Assets 2,758,148 3,289,479 531,331 1

  18. Slide 18: Customer deposits is the largest funding source

    Overview Operating Environment Financial Review Guidance Customer deposits is the largest funding source at 63.9% of total funding base. N’million 2020FY 2021FY VAR % VAR  Customer deposits increased across all deposit types Demand Deposits 883,300 1,031,092 147,792 16.7% by 19.2% YTD to N2,024.8bn

  19. Slide 19: Low cost deposits accounted for 74.5% of total customer deposits

    Overview Operating Environment Financial Review Guidance Low cost deposits accounted for 74.5% of total customer deposits Customer Deposits (N’bn) Customer Deposits by Type 17.5% 18.3% 18.5% 17.8% 19.7% Time Deposits, Demand Deposits, 2,024.8 25.5% 50.9% 1,980.2 1,973.0 1,699.0 1,751.3 367.1 350.4 3

  20. Slide 20: Loans & Advances Analysis

    Overview Operating Environment Financial Review Guidance Loans & Advances Analysis Net Loans & Advance  Net loans & advances increased by 25.1% YTD to N'billion N1,658.4bn, with 40.0% of the loan book within the 12 1,535.4 1,612.9 1,658.4 months or less maturity portfolio. 1,426.3 18.7 35.9 1,326.1

  21. Slide 21: Improved asset quality led to a drop in impairment charge

    Overview Operating Environment Financial Review Guidance Improved asset quality as the economy recover led to a drop in impairment charge 2021FY Impairment Charge Impairment Charge N’billion ( 5.7 ) 7.9 2021FY ( 7.0 ) ( 9.2 ) ( 7.0 ) - 58.3% 2020FY ( 16.9 ) Stage 1 Stage 2 Stage 3 Total 2020FY Impai

  22. Slide 22: Diversified loan book with focus on asset quality

    Overview Operating Environment Financial Review Guidance Diversified loan book with focus on asset quality Gross Loans by Sector N’million 2020FY Q1 2021 H1 2021 9M 2021 2021FY VAR % VAR Communication 32,217 29,776 31,170 30,586 29,535 (1,052) -3.4% Oil and Gas 315,155 374,558 411,521 421,975 452,84

  23. Slide 23: Sectoral contributions remain below internal guidance and portfolio limit

    Overview Operating Environment Financial Review Guidance Sectoral contributions remain below internal guidance and portfolio limit of 20.0% % Contribution (2021FY) Gross Loans by Sector N’million 2020FY 2021FY VAR % VAR Government; 10.1% Oil & Gas: Service; 10.0% Communication 32,217 29,535 (2,682)

  24. Slide 24: Adequate coverage for Stage 3 Loans at 57.2%

    Overview Operating Environment Financial Review Guidance Adequate coverage for Stage 3 Loans at 57.2%. Gross Loan Book by Stage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Communication 14,666 13,886 982 29,535 49.7% 47.0% 3.3% 1.7% Oil and Gas 321,552 127,093 4,203 452,848 71.0% 28.

  25. Slide 25: Non-performing loans (NPL) analysis

    Overview Operating Environment Financial Review Guidance Non-performing loans (NPL) analysis NPL Analysis 2020FY 2021FY VAR % VAR 2020FY 2021FY N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,932 982 (950) -49.2% 6.0% 3.3% Oil and Gas 4,469 4,203 (266) -6.0% 1.4% 0.9% - Oil & Gas

  26. Slide 26: Focus remains on asset quality as the loan book increases

    Overview Operating Environment Financial Review Guidance Focus remains on asset quality as the loan book increases Non-performing Loan (NPL) Ratio NPL Contribution by Sector (2020FY Vs. 2021FY) 0% Communication: 4% Vs 2% 0% 3.8% 3.6% 2021FY 2% Oil & Gas: Upstream: 0% Vs 0% Transport: 31% Vs 21% 2.8%

  27. Slide 27: CAR stood at 20.1%, well above the regulatory minimum

    Overview Operating Environment Financial Review Guidance CAR stood at 20.1%, well above the regulatory minimum requirement of 15.0% Capital Adequacy Ratio Computation – Basel II Capital Adequacy Ratio Trend N’billion N‘billion 2020FY 2021FY VAR 282.7 297.8 273.5 264.4 273.4 30% Tier 1 Capital 224.3

  28. Slide 28: The Code You Should Never Forget

    PW Fidelity The Code You Should Never Forget Dial Now To Get Started Pay Bills Buy Airtime Transfer and more ows GOHOs www.fidelitybank.ng

  29. Slide 29: Actual Vs. Target

    Overview Operating Environment Financial Review Guidance Actual Vs. Target 2021FY Actual 2021FY Target Comment 2022FY Target PBT N38.1bn N35.2bn Achieved N48.0bn Loan Growth 25.1% 10.0% - 15.0% Achieved 10.0% - 15.0% Deposit Growth 19.2% 15.0% - 20.0% Achieved 15.0% - 20.0% Net Interest Margin 4.7%

  30. Slide 30: Fidelity Bank Plc contact details

    Fidelity Bank Plc. 2 Kofo Abayomi Street, Victoria Island, Lagos, Nigeria +234 (01) 4480853 info.investor@fidelitybank.ng www.fidelitybank.ng

Fidelity Bank — FY2021 Earnings Presentation on 6ix