Fidelity Bank Plc · NSENG:FIDELITYBK

Fidelity Bank — Q1 2019 Earnings Presentation

32 slides from Fidelity Bank's earnings presentation, 2019

  1. Slide 1: Fidelity Bank Investor Presentation

    Fidelity Bank Investor Presentation Unaudited Financial Results for the 3 months ended March 31, 2019 www.fidelitybank.ng

  2. Slide 2: Outline

    Outline 1. Overview of Fidelity Bank 2. The Operating Environment 3. Financial Highlights 4. Financial Review 5. Q1 2019 Actual Vs. 2019FY Guidance 2 www.fidelitybank.ng

  3. Slide 3: 1. Overview of Fidelity Bank

    1. Overview of Fidelity Bank 3 www.fidelitybank.ng 3

  4. Slide 4: Overview of Fidelity Bank

    Overview of Fidelity Bank Ownership 32.0bn Authorized Shares Listings: 28.96bn Shares Total Assets: N1,870bn Issued And 28.96bn Fully Paid $5.2bn 7yr N30bn May 2022 NGN Bonds $400m Oct 2022 Eurobond Professional Staff 2,912 808 ATMs Male: 56% Operations 4.7 Million Female: 44% & Accounts 2.1m Cards

  5. Slide 5: Overview of Fidelity Bank: Retail and Digital Banking Evolution

    Overview of Fidelity Bank Retail And Digital Banking Evolution / Progress Report Number of Customer Accounts (#’m) Savings deposits (N’bn) Retail Risk Assets (N’bn) 4.7 66.0 4.5 242.1 228.0 57.2 3.9 3.6 3.3 178.6 44.8 155.0 37.6 39.3 119.1 2015 2016 2017 2018 Q1 2019 2015 2016 2017 2018 Q1 2019 2015

  6. Slide 6: 2. The Operating Environment

    2. The Operating Environment 66 www.fidelitybank.ng 6 6

  7. Slide 7: The Operating Environment

    The Operating Environment MPC maintains CRR at Improving credit to the 22.5% in Q1 2019 Private Sector Improving Foreign Political risk impacts Reserves on the Capital & Money Market Improving yields as Naira has been inflation rate moderates relatively stable Slower growth in Monetary Policy GDP (A

  8. Slide 8: 3. Financial Highlights

    3. Financial Highlights 8 www.fidelitybank.ng 3

  9. Slide 9: Performance Highlights

    Performance Highlights  Total Interest Income up by 2.6% to N38.7 billion in Q1 2019 (Q1 2018: N37.7 billion) Revenue  Operating Expenses up by 10.4% to N16.7 billion in Q1 2019 (Q1 2018: N15.1 billion) and  Cost to Income Ratio dropped to 68.4% in Q1 2019 from 72.7% in Q1 2018 Efficiency Ratio 

  10. Slide 10: Financial Highlights

    Financial Highlights  PBT increased by 34.0% YoY to N6.7 billion from N5.0 billion in Q1 2018 due to N2.3 billion increase in FX Income, interest income on liquid assets (N0.9 billion), and digital banking income (N0.6 billion), and moderate increase in total expenses by N1.6 billion.  Growth in t

  11. Slide 11: Financial Highlights: Summary of Income Statement

    Financial Highlights Summary of Income Statement: YoY Change N’million Q1 2018 Q1 2019 VAR % VAR Gross Earnings 43,328 48,443 5,115 11.8% Interest Income Loans 28,345 28,400 55 0.2% Interest Income Liquid Assets 9,335 10,274 939 10.1% Total Interest Income 37,680 38,674 994 2.6% Interest Expense Cus

  12. Slide 12: Financial Highlights: Statement of Financial Position

    Financial Highlights Statement of Financial Position: YTD Change N’million 2018FY Q1 2019 VAR % VAR Total Assets 1,719,883 1,870,124 150,241 8.7% Earning Assets 1,198,988 1,290,754 91,766 7.7% Bank Placements 58,755 41,946 (16,809) -28.6% Treasury Bills 189,236 182,270 (6,966) -3.7% Bonds 101,117 10

  13. Slide 13: Gross Earnings Analysis

    Gross Earnings Analysis Key Highlights (N’m) Q1 2018 Q1 2019 VAR % VAR Total Earnings: Q1 2018 Total Earnings: Q1 2019 Total Earnings 43,328 48,443 5,115 11.8% Maint. Fee, 2% Trade, 1% Maint. Fee, 1% Trade, 1% Interest Income Loans 28,345 28,400 55 0.2% Digital, 4% Others, 7% Others, 5% Digital, 4%

  14. Slide 14: Net Interest Margin Analysis

    Net Interest Margin Analysis  NIM dropped to 5.1% from 5.8% in 2018FY due to a decline NIM Trend in average yield on earning assets and an increase in funding cost. 7.1% 6.7% 6.7%  The moderation in the yield on earnings assets was due to 5.8% 5.1% the lower average lending rate.  Average funding

  15. Slide 15: Total Expense Analysis

    Total Expense Analysis Key Highlights (N’m) Q1 2018 Q1 2019 VAR % VAR Total Expenses: Q1 2018 Total Expenses: Q1 2019 Total Expenses 15,120 16,692 1,572 10.4% Staff Cost, 32% Others Exp., 35% Staff Cost, 34% Others Exp., 36% Staff Cost 5,072 5,347 275 5.4% Depreciation 769 993 224 29.1% NDIC/AMCON C

  16. Slide 16: Cost Dynamics – YoY Breakdown

    Cost Dynamics – YoY Breakdown Breakdown of Operating Expenses: 2018 AVG. Vs. Q1 2018 Vs. Q1 2019 N’million 2018 AVG. Q1 2018 Q1 2019 VAR % VAR Security expenses 320 306 129 (177) -57.8% Branding & Advert 2,088 1,350 1,299 (51) -3.8% Technology Cost 592 944 908 (36) -3.9% Telephone expenses 25 26 22

  17. Slide 17: 4. Financial Review - SFP

    4. Financial Review - SFP 17 www.fidelitybank.ng 3

  18. Slide 18: Funding Base Analysis

    Funding Base Analysis Key Highlights (N’m) 2018FY Q1 2019 VAR % VAR Funding Structure: 2018FY Funding Structure: Q1 2019 Demand Deposits 571,329 569,986 (1,343) -0.2% Debt, 11% Equity, 12% Debt, 11% Equity, 13% Savings Deposits 227,970 242,080 14,110 6.2% Tenor Deposits 180,114 204,933 24,819 13.8%

  19. Slide 19: Deposits Analysis

    Deposits Analysis  Total deposits increased by 3.8% to N1,017.0 billion from Total Deposits N979.4 billion in 2018FY. N’billion 88.5% 87.8% 89.1% 81.6% 80.8%  FCY deposits increased by 8.6% YTD and now accounts 986.8 979.4 1,017.0 for nearly 19.2% of total deposits.. 927.9 859.4 107.4 104.8 179.8

  20. Slide 20: Retail Banking Analysis (Personal Banking)

    Retail Banking Analysis (Personal Banking)  Savings deposits on course to achieving the 6th Savings Deposits Trend consecutive year of double-digit savings growth. N'billion 21.9% 21.3% 20.4% 23.3% 23.8%  Savings deposits grew by 6.2% YTD to N242.1 billion and accounts for over 23.8% of total depo

  21. Slide 21: Liquid Assets Position

    Liquid Assets Position Short-term Funds Placements Treasury Bills Bonds 25.3% 5.3% 9.1% 5.6% As a % of Total Assets As a % of Total Assets As a % of Total Assets As a % of Total Assets Liquidity Ratio % Total Loans to Customer Deposits 38.3% 39.0% 79.4% 37.2% 73.1% 36.0% 72.3% 71.0% 70.3% 33.2% 30.0

  22. Slide 22: Loan Portfolio Analysis

    Loan Portfolio Analysis Breakdown of Loans & Advances to Customers: 2018FY Vs. Q1 2019 N’million 2018FY Q1 2019 VAR % VAR Communication 22,463 25,972 3,510 15.6% Oil and Gas 207,918 231,061 23,143 11.1% - Upstream 120,489 130,059 9,571 7.9% - Downstream 32,950 45,939 12,989 39.4% - Services 54,480 5

  23. Slide 23: Loan Portfolio Analysis

    Loan Portfolio Analysis Breakdown of Loans & Advances to Customers Loan Analysis – Q1 2019 Construction, Agriculture, Others, 4.4% N’million H1 2018 9M 2018 2018FY Q1 2019 3.2% 3.1% Communication, Communication 40,614 36,685 22,463 25,972 2.5% Oil & Gas: Oil and Gas 198,294 219,935 207,918 231,061 S

  24. Slide 24: Loan Book Analysis

    Loan Book Analysis  Net loans and advances increased by 13.7% YTD to N966.3 Net Loans and Advances to Customers billion, with 87.6% of total loan book in term loans. N'billion 55.5% 57.9% 57.5% 58.9% 58.1%  Growth in loans was driven by 4 sectors: Manufacturing, Transport, Agriculture and Oil & Ga

  25. Slide 25: NPL Analysis

    NPL Analysis  NPL ratio declined to 4.9% from 5.7% in 2018FY due to a Gross Loans and Advances combination of 2.1% decline in absolute NPL book and N'billion 13.0% increase in total loan book. 1,024.2 887.5 906.6 50.5 794.3 852.1  Transport sector was largely responsible for the decline in 53.5 51

  26. Slide 26: NPL Portfolio Analysis

    NPL Portfolio Analysis Breakdown of Non-performing Loans: 2018FY Vs. Q1 2019 2018FY Q1 2019 VAR % VAR 2018FY Q1 2019 N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,155 1,229 73 6.4% 5.1% 4.7% Oil and gas 12,374 12,467 93 0.7% 6.0% 5.4% - Oil & Gas Upstream - - - 0.0% 0.0% 0.0% -

  27. Slide 27: NPL Portfolio Analysis

    NPL Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – Q1 2019 Others, 12.2% Communication, Power, 0.0% N’million H1 2018 9M 2018 2018FY Q1 2019 2.4% Construction, Oil & Gas: Communication 1,609 1,597 1,155 1,229 1.9% Upstream, 0.0% Oil and Gas 13,148 13,299 12,374 12,467 Oil & Gas:

  28. Slide 28: Capital Adequacy

    Capital Adequacy  Fidelity CAR is now 16.5% which remains well above the Capital Adequacy Ratio Computation – Basel II regulatory minimum requirement of 15.0%. N‘billion 2018FY Q1 2019 VAR  Regulatory adjustment was relatively stable at N16.4 billion. Excluding the Regulatory Adjustment, Fidelity

  29. Slide 29: Strategic Business Units Analysis

    Strategic Business Units Analysis Business Description Location Based Analysis  Handles the bank’s institutional clients with turnover in excess of ₦5.0bn. PBT Deposits Loans Corporate & Investment  Key focus sectors include: 11.1%  Oil & gas upstream  Oil & gas downstream 33.7% Banking  Power

  30. Slide 30: 5. Q1 2019 Actual Vs. 2019FY Guidance

    5. Q1 2019 Actual Vs. 2019FY Guidance 30 www.fidelitybank.ng 3

  31. Slide 31: Q1 2019 Actual Vs. 2019FY Guidance

    Q1 2019 Actual Vs. 2019FY Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N Index Q1 2019 Actual 2019FY Target Comment 1 Net Interest Margin 5.1% 6.0% – 6.5% Behind Target 2 Tax Rate 11.0 10.0% – 15.0% On Track 3 Loan Growth (YTD) 13.7% 7.5% - 10.0% On Track 4 Deposit Growth (YTD) 3.8% 7.5% - 10.0%

  32. Slide 32: Thank You

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

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