Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — FY2022 Earnings Presentation
31 slides from Fidelity Bank's earnings presentation, Dec 31, 2022
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Audited Financial Results for the 12 months ended December 31, 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 31 December 2022. Aside the extracts from the published financial statements, Fidelity has obtained some information fr
Slide 3: Content
Content Section Page 1. Overview of Fidelity Bank 5 2. Operating Environment 11 3. Financial Review 14 4. 2023FY Guidance 30 3 Fidelity Bank information meant for public use
Slide 4: Overview of Fidelity Bank
Fidelity Bank information meant for public use
Slide 5: Fidelity Bank at a glance
Overview Operating Environment Financial Review Guidance Business Segment > 250 Business Offices 22.1% > 7.5m+Customer Accounts Revenue 48.3% 29.5% Our Vision: > 3,038 To be number 1 in every market we serve and for every branded Professional Staff products we offer 19.9% 51.4% > 155 Call Centre Age
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 34.4% 27.4% 97bps N337.1bn N2,580.6bn 18.1% Operating Income Net Loans & Advances NPL 39.9% 27.6% 00bps N179.9bn N2,116.2bn 2.9% 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 17.1% YTD > 4.3m+ 42% 18,686 Mkt Share 24% % Total Trnx 326.8 263.6 91% 13,148 Debit Cardholders
Slide 9: Fidelity's exposure to Ghana risk is limited to $6.9m
Overview Operating Environment Financial Review Guidance Fidelity’s exposure to Ghana risk is limited to $6.9m 78.1% Investment in Ghana Eurobonds $’million ➢ Total exposure to Ghana Risk is $6.94m, which constitutes about 0.6% of our 6.94 5.15 investment portfolio (excl. equity). 3.90 2.88 1.79 1.0
Slide 10: Operating Environment
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Slide 11: Real GDP growth in Q4 2022 came in at 3.52%
Overview Operating Environment Financial Review Guidance ❖ Real GDP growth in Q4 2022 came in at 3.52% compared to 2.25% in Real GDP Growth Q3 2022, while annual real GDP growth was reported at 3.1% Vs. 3.4% in 2021. 5.01% 4.03% 3.98% 3.54% 3.52% 3.11% 2.25% ❖ Agriculture, Trade, Information & Commu
Slide 12: Key regulatory and policy changes in 2022
Overview Operating Environment Financial Review Guidance Key regulatory and policy changes in 2022 ❖ IMF raised Nigeria’s 2022 growth forecast from 2.7% to ❖ CBN announced a domestic card scheme which can be 3.4%. used to replace ATM cards. ❖ MPR raised by 150bps from 11.5% to 13.0%, the first time
Slide 13: Financial Review
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Slide 14: Financial Performance Highlights - SCI
Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SCI Summary of Income Statement ➢ 34.4% growth in gross earnings was led by 45.2% N’million 2021FY 2022FY % VAR increase in interest income to N295.6bn from N203.6bn in 2021FY. Gross Earnings 250,776 337,050
Slide 15: Combination of improved yield and earnings base is boosting revenue
Overview Operating Environment Financial Review Guidance Combination of improved yield and earnings base is boosting revenue 78.1% Breakdown of Gross Earnings Interest Income: % Contribution 19.4% 80.6% N’billion 2021FY 2022FY VAR % VAR 45.2% 295.6 Int. Inc. on Loans 164.5 235.8 71.3 43.4% 203.6 20.
Slide 16: High yield environment boosted NIM despite increased funding cost
Overview Operating Environment Financial Review Guidance High yield environment boosted NIM despite increased funding cost Avg. Yield on Earnings Assets ➢ NIM increased to 6.3% from 4.7% owing to improved interest rate environment which impacted on both yields and funding cost. 12.2% 10.1% ➢ Increas
Slide 17: Improved CIR to 67.1% despite increased operating expenses
Overview Operating Environment Financial Review Guidance Improved CIR to 67.1% despite increased operating expenses Breakdown of OPEX Key drivers of OPEX: % Contributions CIR N’million 2021FY 2022FY % Growth Regulatory Charges 22,741 26,514 16.6% 74.9% Staff Cost 23,470 29,731 26.7% 13.9% 67.1% Mark
Slide 18: Financial Performance Highlights - SFP
Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SFP Statement of Financial Position ➢ Earning Assets represents 66.2% of total N’million 2021FY 2022FY VAR % VAR assets and grew by 19.1% to ₦2.6tn from Total Assets 3,280,454 3,989,009 708,555 21.6% ₦2.2tn i
Slide 19: Customer deposits is the largest funding source at 71.1%
Overview Operating Environment Financial Review Guidance Customer deposits is the largest funding source at 71.1% of total funding base. N’million 2021FY 2022FY VAR % VAR ➢ Total funding base was boosted by 27.4% growth in Demand Deposits 1,031,091 1,559,170 528,079 51.2% total customer deposits and
Slide 20: 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 19.7% 20.9% 26.5% 26.2% 27.5% Time Deposits, Demand Deposits, 2,580.6 16.4% 2,290.1 2,294.7 60.4% 2,024.8 2,066.2 709.2 399.2 4
Slide 21: Loans & Advances Analysis
Overview Operating Environment Financial Review Guidance Loans & Advances Analysis Net Loans & Advance (N’bn) ➢ Net loans & advances increased by 27.6% to N2.1tn, with 39.4% of the loan book within the 12 months or less 2,116.2 maturity portfolio. 1,912.7 1,989.3 1,826.0 1,658.4 635.0 712.2 638.0 63
Slide 22: 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 2022FY Impairment Charge Impairment Charge N’billion ( 3.8 ) ( 5.4 ) 2022FY - 22.6% ( 1.7 ) 0.1 2021FY Stage 1 Stage 2 Stage 3 Total 2021FY Impairment Charge Total Impairment Allowance
Slide 23: 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 2021FY Q1 2022 H1 2022 9M 2022 2022FY VAR % VAR Communication 29,535 34,766 37,250 40,860 37,878 (2,982) -7.3% Oil and Gas 452,848 497,313 506,863 519,401 565,91
Slide 24: 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 (2022FY) Gross Loans by Sector Government; 9.2% Oil & Gas: Service; 8.7% N’million 2021FY 2022FY VAR % VAR Construction; 4.5% Communication 8,343
Slide 25: Adequate coverage across stages with NPL coverage at 124.6%
Overview Operating Environment Financial Review Guidance Adequate coverage across stages with NPL coverage at 124.6% Gross Loan Book by Stage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Communication 23,684 12,446 1,748 37,878 62.5% 32.9% 4.6% 1.7% Oil and Gas 370,437 190,737 4,738 5
Slide 26: Non-performing loans (NPL) analysis
Overview Operating Environment Financial Review Guidance Non-performing loans (NPL) analysis NPL Analysis 2021FY 2022FY VAR % VAR 2021FY 2022FY N'million N'million N'million % NPL Ratio NPL Ratio Communication 982 1,748 765 77.9% 3.3% 4.6% Oil and Gas 4,203 4,738 535 12.7% 0.9% 0.8% - Oil & Gas Upst
Slide 27: 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. 2022FY) Communication: 2% Vs 3% 2022FY 0% 3% 0% Oil & Gas: Upstream: 0% Vs 0% 3.3% Transport: 21% Vs 18% 2.9% 2.8%
Slide 28: CAR stood at 18.1%, well above the regulatory minimum of 15.0%
Overview Operating Environment Financial Review Guidance CAR stood at 18.1%, well above the regulatory minimum requirement of 15.0% Capital Adequacy Ratio Computation – Basel II Capital Adequacy Ratio Trend N’billion N‘billion 2021FY 2022FY VAR 19.1% 19.1% 19.0% 0 18.6% 18.1% 30% Tier 1 Capital 219.
Slide 29: 2023FY Guidance
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Slide 30: Actual Vs. Target
Overview Operating Environment Financial Review Guidance Actual Vs. Target 2022FY Actual 2022FY Target Comment 2023FY Target PBT N53.7bn N48.0bn Achieved N70.0bn Loan Growth 27.60% 10.0% - 15.0% Achieved 10.0% - 15.0% Deposit Growth 27.40% 15.0% - 20.0% Achieved 15.0% - 20.0% Net Interest Margin 6.3
Slide 31: 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 information meant for public use