Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — Investor Presentation (June 2013)
31 slides from Fidelity Bank's investor presentation, June 2013
Slide 1: Investor Presentation
Investor Presentation June 2013
Slide 2: Outline
Outline 1 Fidelity overview 2 2 Nigerian Economy and Banking Sector overview 5 3 Business overview 11 4 Financials highlight 19 5 Looking into the Future 28 1 12KLD0346_Client template1 21/06/2013 12:07:13
Slide 3: Fidelity: a leading financial institution in Nigeria
Fidelity: a leading financial institution in Nigeria Fidelity Overview Key Financials Balance Sheet FY 2012 US$ ₦ Established in 1987 and received a universal banking Assets 5.88bn 914.4bn licence by the Central Bank of Nigeria in 2001 Loans and advances to customers 2.31bn 345.5bn Non-Performing L
Slide 4: Key Investment Highlights
Key Investment Highlights Market leading position Experienced Strong franchise management team Consistent financial Sustained quality performance and and asset growth profitability Sound risk Rapidly growing management distribution network practice Transparent corporate governance The Banker Magazin
Slide 5: Outline
Outline 1 Fidelity overview 2 2 Nigerian Economy and Banking Sector overview 5 3 Business overview 11 4 Financials highlight 19 5 Looking into the Future 28 4 12KLD0346_Client template1 21/06/2013 12:07:13
Slide 6: Economy: Strong fundamentals, solid growth
Economy: Strong fundamentals, solid growth Annual GDP Growth Rate Annual Foreign Trade Volume N'billion 35,000 33,644 7.98 7.43 29,069 7.27 27,360 6.75 6.93 28,000 25,862 6.61 21,881 21,000 19,658 14,000 7,000 - 2010 2011 2012 2013f 2014f 2015f 2010 2011 2012 2013f 2014f 2015f Source: Nigerian Burea
Slide 7: Stable growth pattern and moderate debt levels
Stable growth pattern and moderate debt levels Comparative Growth Total Debt Stock/Gross Domestic % Growth Product 25 Angola 28.6% Gabon 20 Ghana Nigeria 19.2% Zambia 18.0% 18.3% 15 13.9% 12.4% 11.8% 10 11.7% 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2005 2006 2007 2008 2009 2010
Slide 8: Nigerian banking sector reform
Nigerian banking sector reform Post the turbulence witnessed by the sector in 2010, the CBN took decisive measures built on four pillars Banks report periodically to the CBN via the EFASS, meet with the CBN once a year for approval of the Year End audited financials and are subject to risk based a
Slide 9: Overview of the top 10 Nigerian banks
Overview of the top 10 Nigerian banks Total Equity Bank Deposits Loans and Advances ₦ million ₦ million ₦ million First Bank 2,400,860 Zenith 462,956 First Bank 1,953,116 Zenith 1,929,244 First Bank 438,847 Zenith 989,814 UBA 1,720,008 GT Bank 283,441 GT Bank 783,915 Access 1,201,482 Access 241,494
Slide 10: Outline
Outline 1 Fidelity overview 2 2 Nigerian Economy and Banking Sector overview 5 3 Business overview 10 4 Financials highlight 19 5 Looking into the Future 28 9 12KLD0346_Client template1 21/06/2013 12:07:13
Slide 11: 25 years serving the Nigerian economy
25 years serving the Nigerian economy Strategic alliances with international financial Institutions, award winning innovative products and a vision to become a market leader is the way forward for Fidelity Obtained ISO Fidelity incorporated Accepted by Finalised merger 27001 as a Private Limited
Slide 12: Over 25 Years . . . and getting better
Over 25 Years . . . and getting better Some Recent Awards and Recognitions: Africa Oil & Gas Deal of the Year 2013 – Euromoney Project Finance, UK. Worldwide Award for Excellence in Transaction Processing– Deutsche Bank – 2013 Telecoms Financing Bank of the Year 2012 – Nigeria Telecoms Awards
Slide 13: Improving key indicators
Improving key indicators Fidelity Diamond Bank GTBank Access Bank (₦ billion) FYE Dec-12 FYE Dec-11 FYE Dec-12 FYE Dec-12 FYE Dec-12 Asset quality Total assets 914.4 737.9 1,059.1 1,620.3 1,515.8 Loans and advances 443.5 378.2 636.8 604.1 557.6 NPL ratio 3.9% 7.8% 5.3% 3.4% 5.0% Loans and advances /
Slide 14: Growing market share
Growing market share Market Share in Assets and Loans Total Assets Market Share Total Loans and Advances Market Share 4.51% 4.54% 3.96% 3.82% 2.78% 2.41% YE 2010 YE 2011 YE 2012 YE 2010 YE 2011 YE 2012 Source: Bank Audited Accounts, CBN “Downside risk is limited following Fidelity's sale of “Telecom
Slide 15: Corporate banking and Treasury
Corporate banking and Treasury 37% Of Revenue 38% Of Revenue Corporate Banking Treasury Handles the bank’s institutional clients with turnover in Handles the bank’s investments, brokerage activities excess of ₦10.0bn. and the bank’s daily liquidity position Accounted for 40.5 % of the bank’s comm
Slide 16: Commercial and consumer banking
Commercial and consumer banking 25 % Of Revenue Handles clients not matching the corporate banking criteria Presence in all 36 states in Nigeria Distribution Channels & Customer Base FYE 2012 Customers with net sales of less than ₦10.0 billion Branches 200 Supports commercial enterprises and SME
Slide 17: Risk management
Risk management Completed the implementation of an enterprise-wide risk Portfolio concentration sector limits management framework in 2011, with Deloitte of South FYE 2012 (%) Africa as consultants Agribusiness 9 Board committees with executive and non executive Finance and Insurance 1 members and
Slide 18: Outline
Outline 1 Fidelity overview 2 2 Nigerian Economy and Banking Sector overview 5 3 Business overview 11 4 Financials highlight 18 5 Looking into the Future 28 17 12KLD0346_Client template1 21/06/2013 12:07:13
Slide 19: Fidelity Bank IFRS Results
Fidelity Bank IFRS Results Financial Highlight (Naira in million) FYE 2012 FYE 2011 % Change Gross Earnings 119,118 73,349 62.3% Interest & Discount Income 78,996 49,534 59.5% Net Interest Income 36,810 30,555 20.5% Other Income 39,358 23,768 65.6% Profit after Tax (PAT) 18,200 2,585 604.1% Cost of
Slide 20: Profitability and cost dynamics
Profitability and cost dynamics Earnings have continued to recover on the back of Net interest margin improving market conditions, loan quality, prudent balance ₦ billion 160 10% sheet management and cost management initiatives 119.1 8% 120 Operating expenses have grown significantly over the last
Slide 21: Assets dynamics
Assets dynamics Assets primarily increased on the back of larger Total Assets loan volumes and investment portfolios ₦ billion 914.4 FYE 2012, loans and investment portfolio 737.9 constituted 48.5% and 32.8% of the total assets Loan expansion was driven by increased exposure 500.5 to the telecomm
Slide 22: Diversified loan portfolio
Diversified loan portfolio Loan expansion in 2012 is in line with the bank’s growth Loans and Advances to Customers strategy to increase its wallet size of the market lending activities ₦ 206.3bn ₦ 279.2bn ₦ 345.5bn 57% of the total loan book is concentrated within 4 52.6% 60.9% industries 71.2% 5
Slide 23: Improving loan quality
Improving loan quality Recoveries have resulted in increased liquidity and improvement in NPL ratio Impairment Breakdown Details of loans sold to AMCON since its Gross Loans ₦ 235.6bn ₦ 293.7bn ₦358.9bn establishment are to customers 6.7% 3.2% 0.4% 0.7% 20.9% % Of Loan 4.5% (₦bn ) Loan Value Proce
Slide 24: Strong funding capabilities
Strong funding capabilities Deposit expansion driven by increased exposure to Customer Deposits Evolution buoyant sectors in the Nigerian economy such as ₦ 328.6bn ₦ 563.7bn ₦716.7bn telecommunications, agriculture and oil and gas 9.5% 10.0% 10.7% The bank’s continued branch expansion, focus on 38
Slide 25: Sound liquidity position
Sound liquidity position Good quality and high earning safe assets in interbank Funding structure and government securities 4.7% 3.8% 4.0% The bank will continue to reallocate these as the economy 19.8% 17.7% 29.7% and banking sector continue to evolve High interbank rates and good returns from t
Slide 26: Capital adequacy
Capital adequacy Fidelity is well capitalized and has maintained a strong Capital Adequacy Ratio (CAR) even during periods of Capital Adequacy Ratio ₦ billion % CAR strong loan provisioning 161.5 148.5 60% 160 146.1 In 2007, Fidelity did a multi-currency equity offering, which 120 40% added ₦100 b
Slide 27: Outline
Outline 1 Fidelity overview 2 2 Nigerian Economy and Banking Sector overview 5 3 Business overview 11 4 Financials highlight 19 5 Looking into the Future 28 26 12KLD0346_Client template1 21/06/2013 12:07:13
Slide 28: Fidelity Bank Q1-2013 Unaudited IFRS Results
Fidelity Bank Q1-2013 Unaudited IFRS Results FINANCIAL HIGHLIGHT (Naira in million) Q1-2013 Q1-2012 % Change Gross Earnings 31,432 22,429 40.1% Interest & Discount Income 20,745 17,588 17.9% Net Interest Income 6,584 9,943 -33.8% Other Income 10,687 4,841 120.8% Profit before Tax (PBT) 5,945 4,276 3
Slide 29: Strategic outlook
Strategic outlook Become one of the top five banks by profitability by 2015 Enhanced physical and Focus on fast growing Maintain a leading position electronic distribution economic sectors to enhance through organic growth and capabilities the bank’s standing opportunistic acquisition Improve cu
Slide 30: Growth expectations
Growth expectations EXPECTATIONS OF PERFORMANCE IMPROVEMENT & KEY DRIVERS S/N INDEX TARGET 2013 – 2015 RATIONALE Based on low cost deposit and earning assets growth Net Interest Margin Targeting between 7-8% 1 expectations Targeting an effective tax Based on the impact of amended tax laws on Govt. T
Slide 31: Thank You
MP riveniry Thank You