Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — H1 2022 Earnings Presentation
30 slides from Fidelity Bank's earnings presentation, 2022
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Audited Financial Results for the 6 months ended June 30, 2022 Fidelity Bank information meant for public use
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 30 June 2022. Aside the extracts from the published financial statements, Fidelity has obtained some information from s
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 Fidelity Bank information meant for public use
Slide 4: Overview of Fidelity Bank
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Slide 5: Fidelity Bank at a glance
Overview Operating Environment Financial Review Guidance Business Segment > 250 Business Offices 28.0% > 7.0m+Customer Accounts Revenue 48.5% 23.5% Our Vision: > 3,113 To be number 1 in every market we serve and for every branded Professional Staff products we offer 13.7% > 150 Call Centre Agents PB
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 Audit Board Risk Board Finance & General Board Corporat
Slide 7: Impressive performance across key income and balance sheet lines
Overview Operating Environment Financial Review Guidance Impressive performance across key income and balance sheet lines Gross Earnings Customer Deposits CAR 37.9% 13.1% 20bps N154.8bn N2,290.1bn 19.8% Operating Revenue Net Loans & Advances NPL 36.7% 15.3% 20bps N89.1bn N1,912.7bn 2.7% Operating Ex
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 8.6% YTD > 4.0m+ 42% Mkt Share 33% % Total Trnx 8,328 153.2 90% 5,859 115.2 Debit Cardholders # 6
Slide 9: Operating Environment
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Slide 10: Real GDP growth came at 3.54% in Q2 2022
Overview Operating Environment Financial Review Guidance ❖ Real GDP growth came at 3.54% in Q2 2022 compared to 3.11% in Real GDP Growth Q1 2022, making it the 7th consecutive QoQ growth since Q4 5.01% 2020. 4.03% 3.98% 3.11% 3.54% 0.51% ❖ Key drivers of growth include information & communication, 0
Slide 11: Key regulatory and policy changes
Overview Operating Environment Financial Review Guidance Key regulatory and policy changes ❖ MPR retained at 11.5 percent and the asymmetric corridor ❖ CBN commenced an electronic invoice (e-invoice) for kept unchanged at +100/-700bps. all import and export operations with effect from 1 Feb ‘22 ❖ CB
Slide 12: Financial Review
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Slide 13: Financial Performance Highlights - SCI
Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SCI Summary of Income Statement ➢ 37.9% growth in gross earnings was led by 52.9% N’million H1 2021 H1 2022 % VAR increase in interest income to N136.2bn from N89.1bn in H1 2021. Gross Earnings 112,304 154,84
Slide 14: Improved interest environment is boosting interest income on liquid assets
Overview Operating Environment Financial Review Guidance Improved interest environment is boosting interest income on liquid assets. Breakdown of Gross Earnings Interest Income: % Contribution N’billion H1 2021 H1 2022 VAR % VAR 52.9% 136.2 Int. Inc. on Loans 74.8 106.5 31.6 42.2% 19.6% 21.9% Int. I
Slide 15: Net Interest Margin Analysis
Overview Operating Environment Financial Review Guidance Net Interest Margin Analysis Avg. Yield on Earnings Assets ➢ NIM increased to 6.4% from 5.3% owing to improved interest rate environment which impacted on both yields and funding cost. 11.5% 9.4% ➢ Increase in avg. yield on earning assets surp
Slide 16: Increased regulatory charges largely led to the increase in OPEX
Overview Operating Environment Financial Review Guidance Increased regulatory charges largely led to the increase in OPEX. Breakdown of OPEX Key drivers of OPEX: % Contributions CIR N’million H1 2021 H1 2022 % Growth Regulatory Charges 14,134 22,408 58.5% Staff Cost 11,101 15,230 37.2% 12.3% 69.6% C
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 2021FY H1 2022 VAR % VAR assets which grew by 14.9% compared to 6.9% Total Assets 3,289,479 3,692,763 403,283 1
Slide 18: Customer deposits is the largest funding source at 65.7% of total funding base
Overview Operating Environment Financial Review Guidance Customer deposits is the largest funding source at 65.7% of total funding base. N’million 2021FY H1 2022 VAR % VAR ➢ Total funding base was boosted by 13.1% growth in total Demand Deposits 1,031,092 1,373,808 342,716 33.2% customer deposits an
Slide 19: Low cost deposits accounted for 83.1% of total customer deposits
Overview Operating Environment Financial Review Guidance Low cost deposits accounted for 83.1% of total customer deposits Customer Deposits (N’bn) Customer Deposits by Type 18.5% 17.8% 19.7% 20.9% 26.5% 2,290.1 Time Deposits, 1,751.3 1,980.2 1,973.0 2,024.8 16.9% 399.2 432.0 606.0 Demand Deposits, 3
Slide 20: Loans & Advances Analysis
Overview Operating Environment Financial Review Guidance Loans & Advances Analysis Net Loans & Advance ➢ Net loans & advances increased by 15.3% YTD to N1,912.7bn, with 39.0% of the loan book within the 12 1,826.0 1,912.7 1,658.4 months or less maturity portfolio. 1,535.4 1,612.9 638.0 632.3 593.9 6
Slide 21: Improved asset quality led to a drop in impairment charge
Overview Operating Environment Financial Review Guidance Improved asset quality led to a drop in impairment charge H1 2022 Impairment Charge Impairment Charge N’billion ( 5.3 ) ( 2.0 ) ( 9.2 ) H1 2022 ( 2.0 ) - 13.7% Stage 1 Stage 2 Stage 3 Total H1 2021 ( 2.3 ) 4.2 H1 2021 Impairment Charge Total I
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 H1 2021 9M 2021 2021FY Q1 2022 H1 2022 VAR % VAR Communication 31,170 30,586 29,535 34,766 37,250 2,484 7.1% Oil and Gas 411,521 421,975 452,848 497,313 506,863
Slide 23: Sectoral contributions remain below internal guidance and portfolio limit of 20.0%
Overview Operating Environment Financial Review Guidance Sectoral contributions remain below internal guidance and portfolio limit of 20.0% % Contribution (H1 2022) Gross Loans by Sector Government; 10.7% Oil & Gas: Service; 8.3% N’million 2021FY H1 2022 VAR % VAR Consumer; 3.5% Construction; 3.9% C
Slide 24: Adequate coverage across stages with NPL coverage at 143.1%
Overview Operating Environment Financial Review Guidance Adequate coverage across stages with NPL coverage at 143.1% Gross Loan Book by Stage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Communication 25,955 10,235 1,060 37,250 69.7% 27.5% 2.8% 1.9% Oil and Gas 411,350 90,696 4,817 50
Slide 25: Non-performing loans (NPL) analysis
Overview Operating Environment Financial Review Guidance Non-performing loans (NPL) analysis NPL Analysis 2021FY H1 2022 VAR % VAR 2021FY H1 2022 N'million N'million N'million % NPL Ratio NPL Ratio Communication 982 1,060 78 7.9% 3.3% 2.8% Oil and Gas 4,203 4,817 614 14.6% 0.9% 1.0% - Oil & Gas Upst
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 (2021FY Vs. H1 2022) 0% Communication: 2% Vs 2% H1 2022 2% 0% Oil & Gas: Upstream: 0% Vs 0% 2.9% Transport: 21% Vs 20% 20% 2%
Slide 27: CAR stood at 19.8%, well above the regulatory minimum requirement of 15.0%
Overview Operating Environment Financial Review Guidance CAR stood at 19.8%, well above the regulatory minimum requirement of 15.0% Capital Adequacy Ratio Computation – Basel II Capital Adequacy Ratio Trend N’billion N‘billion 2021FY H1 2022 VAR 297.8 308.5 311.7 273.4 282.7 30% Tier 1 Capital 231.7
Slide 28: 2022FY Guidance
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Slide 29: Actual Vs. Target
Overview Operating Environment Financial Review Guidance Actual Vs. Target H1 2022 2022FY Target Comment PBT N25.1bn N48.0bn On Track Loan Growth 15.3% 10.0% - 15.0% On Track Deposit Growth 13.1% 15.0% - 20.0% On Track Net Interest Margin 6.4% 5.0% - 6.0% On Track Cost to Income Ratio 69.6% Below 65
Slide 30: Fidelity Bank Plc. 2 Kofo Abayomi Street, Victoria Island, Lagos, Nigeria
Fidelity Bank Plc. 2 Kofo Abayomi Street, Victoria Island, Lagos, Nigeria +234 (01) 4480853 info.investor@fidelitybank.ng www.fidelitybank.ng Fidelity Bank information meant for public use