Slide 1: Investor Presentation
Investor Presentation Unaudited IFRS Financial Results for the 6 Months Ended June 2014
Slide 2: Outline
Outline 1 Fidelity Overview (MD/CEO) 2 Nigerian Economy Overview (Head, Strategy) 3 Financial Highlights (Head, Strategy) 4 Financial Review (DH, SIBT) 5 Looking into the future (DH, SIBT) 1 12KLD0346_Client template1 22/08/2014 10:08:09
Slide 3: Overview of Fidelity Bank
Overview of Fidelity Bank Background Key Highlights A full service bank with International Authorisation established in 1987 and licensed by the Central Bank of Nigeria Total Assets 1,058 million The Bank currently has over 400,000 shareholders with the majority being Nigerian citizens and corpo
Slide 4: Overview of Fidelity Bank: Recent Awards and Recognitions
Overview of Fidelity Bank Recent Awards and Recognitions Deutsche Bank: Straight-Through-Processing (STP) Euromoney Project Finance: Africa Oil & Gas Deal of the Excellence Award Web Jurist Awards: Best Bank Website Content Year Businessday Banking Award: Best Bank in Support of Great Place to Work
Slide 5: Outline
Outline 1 Fidelity Overview 2 Nigerian Economy Overview 3 Financial Highlights 4 Financial Review 5 Looking into the future 4 12KLD0346_Client template1 22/08/2014 10:08:10
Slide 6: Economy: Strong fundamentals, solid growth
Economy: Strong fundamentals, solid growth Headline Inflation Headline Inflation (2014) Headline inflation inched up to 8.2% yr-on-yr in June 2014, the highest since Sep 2013, from 8.0% in May 2014 8.2% 8.0% 7.9% 8.0% Increase in food prices accounted for the jump which reflected on the 10bps 7.
Slide 7: Outline
Outline 1 Fidelity Overview 2 Nigerian Economy Overview 3 Financial Highlights 4 Financial Review 5 Looking into the future 6 12KLD0346_Client template1 22/08/2014 10:08:10
Slide 8: Performance Highlight
Performance Highlight 7th largest bank in Nigeria by Equity, 17th largest in Africa and 622nd in World One of the safest Nigerian bank with strong Capital Base Fidelity Brand Successful issue of $300 million Eurobond, which was over subscribed Stable, experienced and well regarded management
Slide 9: Financial Highlights
Financial Highlights Summary of Income Statement H1 - 2014 Vs H1 - 2013 H1 - 2014 H1 - 2013 VAR % VAR Gross Earnings 63,258 62,904 354 0.6% Interest Income Loans 33,487 28,023 5,464 19.5% Interest Income Liquid Assets 18,041 17,791 250 1.4% Total Interest Income 51,528 45,814 5,715 12.5% Interest Ex
Slide 10: Financial Highlights
Financial Highlights Summary of Income Statement Q2 - 2014 Vs Q1 - 2014 (Naira in million) Q2 - 2014 Q1 - 2014 VAR % VAR Gross Earnings 32,303 30,955 1,347 4.4% Interest Income Loans 16,763 16,724 40 0.2% Interest Income Liquid Assets 8,497 9,544 (1,047) -11.0% Total Interest Income 25,261 26,268 (1
Slide 11: Financial Highlights
Financial Highlights Statement of Financial Position: H1 - 2014 Vs H1 - 2013 (Naira in million) H1 - 2014 H1 - 2013 VAR % VAR Total Assets 1,058,235 965,793 92,442 9.6% Earning Assets 718,383 732,031 (13,648) -1.9% Bank Placements 23,450 3,000 20,450 681.7% Treasury Bills 190,807 261,909 (71,102) -2
Slide 12: Financial Highlights
Financial Highlights Statement of Financial Position: Q2 - 2014 Vs Q1 - 2014 (Naira in million) Q2 - 2014 Q1 - 2014 VAR % VAR Total Assets 1,058,235 1,042,962 15,273 1.5% Earning Assets 718,383 698,829 19,554 2.8% Bank Placements 23,450 9,500 13,950 146.8% Treasury Bills 190,807 187,940 2,867 1.5% B
Slide 13: Financial Highlights
Financial Highlights H1 2014 PBT declined despite the strong growth in net interest income in H1 2014 due to losses on financial Instruments (Investment securities) discounted on the back of the increase in CRR to 75% PBT in Q2 negatively impacted by declining yields on liquid assets and increas
Slide 14: Outline
Outline 1 Fidelity Overview 2 Nigerian Economy Overview 3 Financial Highlights 4 Financial Review 5 Looking into the future 13 12KLD0346_Client template1 22/08/2014 10:08:10
Slide 15: Gross Earnings Analysis
Gross Earnings Analysis Key Highlight (N’million) H1-2014 H1-2013 Gross Earnings :H1-2014 Gross Earnings :H1-2013 Gross Earnings 63,258 62,904 E-banking, 1.9% E-banking, 1.3% Others, 8.6% Interest Income Loans 33,487 28,023 COT, 3.4% Others, 3.8% Interest Income Liquid Assets 18,041 17,791 COT, 3.7%
Slide 16: Efficiency Ratio
Efficiency Ratio Sustained growth in gross earnings on the back of 12.5% Gross Earnings growth in interest & discount income. N'billion Non-interest income dropped due to tightened tariff 63.26 62.90 regime on foreign exchange earnings, fees and commissions, which summed up to N2.1biliion. Fut
Slide 17: Expense Analysis
Expense Analysis Key Highlight (N’million) H1-2014 H1-2013 Operating Exp.: H1-2014 Operating Exp.: H1-2013 Total Expenses 26,247 23,724 Staff 11,944 10,229 Others Exp., 30% Depreciation 1,904 1,802 Others Exp., 32% Staff Cost, 43% Staff Cost, 46% Regulatory (NDIC/AMCON) 3,887 3,555 Technology Cost 6
Slide 18: Cost Dynamics
Cost Dynamics Expansion drive and the promotion of 446 core staff in Operating Expenses & Staff Cost April 2014 helped to raise operating expenses and cost- % Share N'billion income ratio 30 26.2 100% 23.7 Though operating expenses inched up by 10.6% yr-on-yr, 75% 20 the Bank has continued to wo
Slide 19: Funding Structure
Funding Structure Key Highlights (N’m) H1 - 2014 H1 - 2013 Funding Structure: H1-2014 Funding Structure: H1-2013 Demand Deposits 368,597 385,773 Equity, 18% Equity, 16% Savings Deposits 82,301 71,805 Time Deposits 314,877 248,591 Eurobond, 5% Demand, Eurobond, 5% 37% Demand, 41% Borrowings, Borrowin
Slide 20: Strong Funding Base
Strong Funding Base Fidelity has consistently delivered a well structured Customer Deposits by Type funding base suitable for short and long term risk assets play Customer deposits represent over 72% of total Demand Deposit liabilities with equity coming in at 15.7% and debt at 41.1% 48.1% 7.3%
Slide 21: Sound Liquidity Position
Sound Liquidity Position Reallocation of N25.8bn stabilization securities in Dec Liquidity Ratio 2013 accompanied by a drop in qualified investment securities, caused a drop in Fidelity 50.7% liquidity ratio 35.3% However, liquidity ratio remains above regulatory 30.0% 30.0% minimum of 30.0% C
Slide 22: Portfolio Analysis
Portfolio Analysis Breakdown of Loans & Advances: H1 - 2014 Vs H1 - 2013 (Naira in million) H1 - 2014 H1 - 2013 VAR % VAR Telecoms 87,229 86,271 958 1% Oil and gas 72,451 74,760 (2,309) -3% Power 50,306 10,870 39,436 363% Manufacturing 37,321 27,263 10,058 37% General Commerce 36,391 29,304 7,087 24
Slide 23: Portfolio Analysis
Portfolio Analysis Breakdown of Loans & Advances Portfolio Analysis – Q2 - 2014 (Naira in million) Q2 - 2014 Q1 - 2014 Dec 2013 Other Sectors, 10.2% Real Estate, 2% Telecoms 87,229 87,973 86,550 Telecoms, 19% Agriculture, 3% Oil and gas 72,451 68,272 75,336 Construction, 3% Power 50,306 48,645 45,44
Slide 24: Portfolio Analysis: Non-performing Loans
Portfolio Analysis Breakdown of Non-performing Loans: Q2 - 2014 Vs Q2 - 2013 (Naira in million) Q2 - 2014 Q2 - 2013 N’million % Contr. % NPL N’million % Contr. % NPL Telecoms 3,089 17.1% 3.5% 3 0.0% 0.0% Oil and gas 2,345 13.0% 3.2% 2,811 20.1% 3.8% Power 0 0.0% 0.0% 0 0.0% 0.0% Manufacturing 6,797
Slide 25: Diversified Loan Book
Diversified Loan Book Sustained growth in overall loan portfolio with Net Loans and Advances to Customers corporate loans accounting for 71.8% of total loan N'billion book and 90.0% of the overall growth. 438.1 Driven by the utilization of Eurobond proceeds, foreign currency denominated loans dr
Slide 26: Improving Loan Quality
Improving Loan Quality Growth in loans and advances have been more in Gross Loans & Advances structured facilities secured against real estates and N’billion traded securities; Over 97.0% of loans are fully secured 455.4 NPL ratio has been consistently kept at below the CBN 382.3 minimum require
Slide 27: Capital Adequacy
Capital Adequacy Fidelity is well capitalized and has maintained a Capital Adequacy Ratio strong Capital Adequacy Ratio (CAR) above N'billion % Ratio 180 164.6 166.4 40% regulatory minimum At current CAR, capital is adequate to support 30% 120 business risks and growth objectives as well as 27%
Slide 28: Outline
Outline 1 Fidelity Overview 2 Nigerian Economy Overview 3 Financial Highlights 4 Financial Review 5 Looking into the future 27 12KLD0346_Client template1 22/08/2014 10:08:11
Slide 29: Update on Strategic Initiatives
Update on Strategic Initiatives Automated Sales MIS Platform is now fully operational, we now have a better insight into the key drivers of our business and it provides a solid foundation for fact based decisions We are already seeing improved efficiencies in our asset and liability management a
Slide 30: Looking Into The Future
Looking Into The Future Increased pipeline deals in the oil and gas sector as the successes of previous transactions serves as a springboard for winning new customers We still see scope for improved balance sheet efficiency especially in the areas of cash management and optimizing the foreign cu
Slide 31: Growth Expectations
275 220 165 110 20 80 60 40 Coverage N’billion N'billion NPL Ratio Growth Expectations GROWTH EXPECTATIONS ON KEY INDICATORS S/N INDEX TARGET 2013 – 2015 RATIONALE Based on low cost deposits and earning assets growth Net Interest Margin Targeting 6% 1 expectations Targeting an effective Based on the
Slide 32: Thank You
275 220 165 110 20 80 60 40 Coverage N’billion N'billion NPL Ratio Thank You 31