Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — H1 2024 Earnings Presentation
31 slides from Fidelity Bank's earnings presentation, Jun 30, 2024
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Audited Financial Results for the 6 months ended June 30, 2024 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 (ÔFidelityÕ or Ôthe BankÕ) audited financial statements for the period ended 30 June 2024. 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 11 3. Financial Review 14 4. H1 2024 Performance Vs. Guidance 30 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 > 251 Business Offices 21.0% Locations: > 8.7m+Customer Accounts Revenue 17.6% 61.4% Nigeria United Kingdom > 3,118Professional Staff 6.1% > 160 Call Centre Agents PBT 13.6% 80.2% > 21k Banking Agents Rt/Comm/PS Corporate Invt
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 107.6% 34.0% 772bps N512.9bn N5,379.8bn 23.9% Operating Income Net Loans & Advances NPL 119.5% 21.3% 0bps N396.8bn N3,752.1bn 3.5% Operating
Slide 8: Contribution to the Group's performance
Overview Operating Environment Financial Review Guidance Contribution to the GroupÕs performance Total Assets (NÕbn) Profit before Tax (PBT) | NPL Ratio FCY NGN Total N'bn % Share NPL Ratio Group 2,981 4,949 7,931 % Share 37.6% 62.4% Group 200.87 100.0% 3.5% Nigeria 2,825 4,949 7,774 % Share 36.3% 6
Slide 9: Drop in POS transactions led to a moderation in electronic banking trend
Overview Operating Environment Financial Review Guidance Drop in POS transactions led to a moderation in electronic banking trend Mobile/Online Customers # NIP Value (NÕbn) E - Banking Transaction (#ÕMn) 13.6% YoY > 5.3m+ 43% 18,602 Mkt Share -37% % Total Trnx 293.3 12,975 85% 183.7 Debit Cardholder
Slide 10: Operating Environment
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Slide 11: Macroeconomic environment: GDP, inflation and crude oil
Overview Operating Environment Financial Review Guidance v Real GDP grew by 3.19% in Q2 2024, exceeding the growth rates of Real GDP Growth 2.51% in Q2 2023 and 2.98% in Q1 2024. 3.46 3.19 2.54 2.98 2.51 v The services sector, which accounted for 58.76% of Nigeria's GDP, drove growth in Q2 2024, exp
Slide 12: Key regulatory and policy changes
Overview Operating Environment Financial Review Guidance Key regulatory and policy changes v Commercial banks' aggregate NOP limit (on and off- v MPC raised the MPR by 400 bps to 22.75%, adjusted the balance sheet) was set at 20.0% and 0.0% of asymmetric corridor around the MPR from +100/-300 to sha
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 Ø The 107.6% yoy growth in gross earnings was led NÕmillion H1 2023 H1 2024 % VAR by 149.2% (N283.3bn) increase in interest income to N473.2bn. Gross Earnings 247,100 512,864 1
Slide 15: The combination of improved yield and earnings assets boosted revenue growth
Overview Operating Environment Financial Review Guidance The combination of improved yield and earnings assets boosted revenue growth 78.1% Breakdown of Gross Earnings Interest Income: Breakdown 80.6% NÕbillion H1 2023 H1 2024 VAR % VAR Int. Inc. on Loans 165.4 287.1 121.6 73.5% 149.2% 473.2 Int. In
Slide 16: A combination of improved yield and higher earnings base increased NIM
Overview Operating Environment Financial Review Guidance A combination of improved yield and higher earnings base increased NIM Avg. Yield on Earnings Assets Ø NIM increased to 13.4% from 8.1% in 2023FY (H1 2023: 7.2%) owing to improved interest rate environment which impacted on both 19.4% yields a
Slide 17: Dropped CIR to 40.3% despite increasing operating expenses and rising inflation
Overview Operating Environment Financial Review Guidance Dropped CIR to 40.3% despite increasing operating expenses and rising inflation Breakdown of OPEX Key drivers of OPEX: % Contributions CIR NÕbillion H1 2023 H1 2024 % Growth Regulatory Charges 28.5 43.1 50.8% Staff Cost 17.3 26.8 54.8% 50.4% 1
Slide 18: Financial Performance Highlights - SFP
Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SFP Statement of Financial Position Ø Total assets increased by 27.2% YTD to NÕmillion 2023FY H1 2024 VAR % VAR N7.9trn from N6.2trn in 2023FY. Total Assets 6,234,688 7,930,528 1,695,840 27.2% Ø 37.6% of the
Slide 19: Building a resilient balance sheet with a well-structured funding base
Overview Operating Environment Financial Review Guidance Building a resilient balance sheet with a well-structured funding base NÕmillion 2023FY H1 2024 VAR % VAR Ø Total customer deposits crossed the N5.0tn mark, Demand Deposits 3,028,939 3,983,278 954,339 31.5% which boosted the funding base. Savi
Slide 20: Sustained growth in low-cost deposits improves margins
Overview Operating Environment Financial Review Guidance Sustained growth in low-cost deposits improves margins Customer Deposits (NÕbn) Customer Deposits by Type 32.9% 31.8% 34.3% 42.6% 48.1% H1 2024 6.9% 5,379.8 4,706.2 19.0% 2.6% 4,014.8 3,439.9 2,588.4 21.9% 3,178.8 2,004.9 1,376.7 1,044.8 1,095
Slide 21: Net Loans and advances
Overview Operating Environment Financial Review Guidance Net Loans and advances Net Loans & Advance (NÕbn) Ø Net loans & advances increased by 21.3% YTD to 3,748.2 3,752.1 N3.8tn, with 47.2% of the loan book within the 12 3,092.4 477.2 714.3 months or less maturity portfolio. 2,647.7 2,654.9 809.4 1
Slide 22: Impact of Naira devaluation leads to increased impairment charge
Overview Operating Environment Financial Review Guidance Impact of Naira devaluation leads to increased impairment charge H1 2024 Impairment Charge Impairment Charge NÕbillion ( 20.2 ) ( 35.9 ) H1 2024 35.9 ( 21.1 ) 80.4% 5.4 H1 2023 19.9 Stage 1 Stage 2 Stage 3 Total H1 2023 Impairment Charge Total
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 NÕmillion H1 2023 9M 2023 2023FY Q1 2024 H1 2024 VAR % VAR Communication 69,406 67,550 66,576 58,684 70,893 12,208 20.8% Oil and Gas 877,774 895,251 1,152,616 1,459,325 1,
Slide 24: 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 2024 Gross Loans by Sector Government; 6.0% Oil & Gas: Service; 10.1% NÕmillion 2023FY H1 2024 VAR % VAR Consumer; 2.2% Communication 66,576
Slide 25: Adequate coverage across stages with NPL coverage at 129.8%
Overview Operating Environment Financial Review Guidance Adequate coverage across stages with NPL coverage at 129.8% Gross Loan Book by Stage NÕmillion Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Communication 52,537 0 18,356 70,893 74.1% 0.0% 25.9% 1.8% Oil and Gas 893,872 655,331 3
Slide 26: Non-performing loans (NPL) analysis
Overview Operating Environment Financial Review Guidance Non-performing loans (NPL) analysis NPL Analysis 2023FY H1 2024 VAR % VAR 2023FY H1 2024 N'million N'million N'million % NPL Ratio NPL Ratio Communication 15,641 18,356 2,715 17.4% 23.5% 25.9% Oil and Gas 23,184 33,865 10,680 46.1% 2.0% 2.1% -
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 (2023FY Vs. H1 2024) Co mmunicatio n: 14% Vs 13% Oil & Gas: Upstream: 0% Vs 0% 15% 13% H1 2024 Transport: 4% Vs 4% 0% Power: 0
Slide 28: CAR remains above regulatory minimum, despite the impact of Naira devaluation
Overview Operating Environment Financial Review Guidance CAR remains above regulatory minimum, despite the impact of Naira devaluation Capital Adequacy Ratio Computation Ð Basel II Capital Adequacy Ratio Trend NÕbillion NÔbillion 2023FY H1 2024 VAR 6 0 8 629.4 3 0 % 5 5 9 23.9% 437.3 467.1 Tier 1 Ca
Slide 29: H1 2024 Performance Vs. Guidance
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Slide 30: Actual Vs. Target
Overview Operating Environment Financial Review Guidance Actual Vs. Target H1 2024 2024FY Target Comment PBT N200.9bn N170.0bn Achieved Loan Growth 21.3% 10.0% - 15.0% On Track Deposit Growth 34.0% 15.0% - 20.0% On Track Net Interest Margin 13.4% 8.0% - 8.5% On Track Cost to Income Ratio 40.3% Below
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