Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — 9M 2019 Earnings Presentation
34 slides from Fidelity Bank's earnings presentation, Sep 30, 2019
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Unaudited Financial Results for the 9 months ended September 30, 2019 www.fidelitybank.ng
Slide 2: Outline
Outline 1. Overview of Fidelity Bank 2. The Operating Environment 3. Financial Highlights 4. Financial Review 5. 9M 2019 Actual Vs. 2019FY Guidance 2 www.fidelitybank.ng
Slide 3: Overview of Fidelity Bank
1. 4. Overview FinancialofReview Fidelity- Bank SFP 36 www.fidelitybank.ng 6 6
Slide 4: Overview of Fidelity Bank
Overview of Fidelity Bank Ownership 32.0bn Authorized Shares Listings: 28.96bn Shares Total Assets: N1,971bn Issued And 28.96bn Fully Paid $5.5bn 7yr N30bn May 2022 NGN Bonds $400m Oct 2022 Eurobond Professional Staff 2,981 814 ATMs Male: 55% Operations 5.0 Million Female: 45% & Accounts 2.1m Cards
Slide 5: Retail and Digital Banking Evolution / Progress Report
Overview of Fidelity Bank Retail And Digital Banking Evolution / Progress Report Number of Customer Accounts (#’m) Savings deposits (N’bn) Retail Risk Assets (N’bn) 248.9 66.0 5.0 228.0 4.5 57.2 3.9 178.6 44.8 47.2 3.6 3.3 155.0 37.6 119.1 2015 2016 2017 2018 9M 2019 2015 2016 2017 2018 9M 2019 2015
Slide 6: The Operating Environment
2. The Operating Environment 6 www.fidelitybank.ng 3
Slide 7: The Operating Environment
The Operating Environment MPC maintains CRR at Improving credit to the 22.5% in Sep 2019 Private Sector – New LDR Threshold Declining Foreign Political risk is Reserves significantly reduced post elections Declining yields due to Naira has been new LDR Thresholds relatively stable 2019 GDP; Q1 = 2.1
Slide 8: Financial Highlights
3. Financial Highlights v v 8 www.fidelitybank.ng 3
Slide 9: Performance Highlights
Performance Highlights Total Interest Income up by 12.2% to N135.1 billion in 9M 2019 (9M 2018: N120.4 billion) Revenue Operating Expenses up by 14.5% to N57.9 billion in 9M 2019 (9M 2018: N50.6 billion) and Cost to Income Ratio increased to 71.7% in 9M 2019 from 68.4% in 9M 2018 Efficiency Ra
Slide 10: Financial Highlights
Financial Highlights Gross earnings increased by 16.3% to N161.4 billion due to double digit growth across key income lines: Credit Related Fees (132.3%), digital banking income (42.7%), trade income (31.8%), account maintenance fees (18.1%), interest income on liquid assets (14.0%) and N2.4 billi
Slide 11: Financial Highlights
Financial Highlights Domiciliary account deposits increased by 46.4% YTD to N263.2 billion and now accounts for almost 23.6% of total deposits from 18.4% in 2018FY. Savings deposits increased by 9.2% YTD to N248.9 billion in 9M 2019 from N228.0 billion in 2018FY and now accounts for 22.3% of tot
Slide 12: Financial Highlights: Income Statement YoY
Financial Highlights Summary of Income Statement: YoY Change N’million 9M 2018 9M 2019 VAR % VAR Gross Earnings 138,745 161,383 22,639 16.3% Interest Income Loans 88,328 98,560 10,232 11.6% Interest Income Liquid Assets 32,071 36,556 4,485 14.0% Total Interest Income 120,399 135,116 14,718 12.2% Int
Slide 13: Financial Highlights: Income Statement QoQ
Financial Highlights Summary of Income Statement: QoQ Change N’million Q1 2019 Q2 2019 Q3 2019 VAR % VAR Gross Earnings 49,200 54,584 57,599 3,015 5.5% Interest Income Loans 28,400 33,685 36,475 2,790 8.3% Interest Income Liquid Assets 11,030 12,715 12,811 96 0.8% Total Interest Income 39,430 46,400
Slide 14: Financial Highlights: Statement of Financial Position
Financial Highlights Statement of Financial Position: YTD Change N’million 2018FY 9M 2019 VAR % VAR Total Assets 1,719,883 1,970,621 250,738 14.6% Earning Assets 1,198,988 1,410,614 211,626 17.7% Bank Placements 58,755 103,306 44,551 75.8% Treasury Bills 189,236 131,367 (57,869) -30.6% Bonds 101,117
Slide 15: Gross Earnings Analysis
Gross Earnings Analysis Key Highlights (N’m) 9M 2018 9M 2019 VAR % VAR Total Earnings: 9M 2018 Total Earnings: 9M 2019 Total Earnings 138,745 161,383 22,639 16.3% Trade, 1% Maint. Fee, 2% Trade, 1% Maint. Fee, 2% Interest Income Loans 88,328 98,560 10,232 11.6% Others, 4% Digital, 4% Others, 6% Digi
Slide 16: Net Interest Margin Analysis
Net Interest Margin Analysis NIM improved to 6.0% from 5.8% in H1 2019, due to an NIM Trend increase in the average yield on earning assets (30bpts) which compensated for the 10bpts growth in average 6.7% funding cost. 5.8% 5.8% 6.0% 5.4% Improvement in the average yield on earnings assets was d
Slide 17: Total Expense Analysis
Total Expense Analysis Key Highlights (N’m) 9M 2018 9M 2019 VAR % VAR Total Expenses: 9M 2018 Total Expenses: 9M 2019 Total Expenses 50,555 57,878 7,323 14.5% Others Exp., 34% Staff Cost, 33% Others Exp., 38% Staff Cost, 29% Staff Cost 16,747 17,013 267 1.6% Depreciation 3,632 3,889 257 7.1% NDIC/AM
Slide 18: Financial Review - SFP
4. Financial Review - SFP www.fidelitybank.ng 6 6 18 6
Slide 19: Funding Base Analysis
Funding Base Analysis Key Highlights (N’m) 2018FY 9M 2019 VAR % VAR Funding Structure: 2018FY Funding Structure: 9M 2019 Demand Deposits 571,329 630,392 59,063 10.3% Debt, 11% Equity, 12% Debt, 10% Equity, 12% Savings Deposits 227,970 248,881 20,911 9.2% Tenor Deposits 180,114 237,143 57,029 31.7% D
Slide 20: Deposits Analysis
Deposits Analysis Total deposits increased by 14.0% YTD to N1,116.4 billion Total Deposits from N979.4 billion in 2018FY. N’billion 89.1% 81.6% 80.8% 80.4% 76.4% FCY deposits increased by 46.4% YTD and now accounts 1,097.0 1,116.4 for nearly 23.6% of total deposits. 986.8 979.4 1,017.0 107.4 215
Slide 21: Retail Banking Analysis (Personal Banking)
Retail Banking Analysis (Personal Banking) Savings deposits grew by 9.2% YTD billion and accounts Savings Deposits Trend for 22.3% of total deposits. N’billion 20.4% 23.3% 23.8% 22.6% 22.3% Growth was as a result of the disciplined execution of our retail banking strategy and improved cross-sell
Slide 22: Liquid Assets Position
Liquid Assets Position Short-term Funds Placements Treasury Bills Bonds 23.1% 5.2% 6.7% 5.2% As a % of Total Assets As a % of Total Assets As a % of Total Assets As a % of Total Assets Liquidity Ratio Gross Loans to Funding Ratio 39.0% 67.5% 68.4% 37.2% 65.7% 64.2% 65.8% 34.8% 33.2% 32.6% 30.0% 30.0
Slide 23: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers: 2018FY Vs. 9M 2019 N’million 2018FY 9M 2019 VAR % VAR Communication 22,463 29,203 6,741 30.0% Oil and Gas 207,918 254,790 46,872 22.5% - Upstream 120,489 131,307 10,819 9.0% - Downstream 32,950 62,358 29,408 89.2% - Services 54,480
Slide 24: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers Loan Analysis – 9M 2019 Construction, Agriculture, Others, 5.4% N’million 2018FY Q1 2019 H1 2019 9M 2019 3.1% 2.6% Communication, Communication 22,463 25,972 25,426 29,203 2.6% Oil & Gas: Service, 5.4% Oil & Gas: Oil and Gas 207,918
Slide 25: Loan Book Analysis
Loan Book Analysis Net loans and advances increased by 26.4% YTD to Net Loans and Advances to Customers N1,074.1 billion and this was primarily driven by 3 sectors N’billion that accounted for over 81% of the loan growth as follows: 57.5% 58.9% 58.1% 60.9% 56.4% 1,073.3 Manufacturing (38.6%), Oi
Slide 26: Loan Book Breakdown – Stage 1|2|3
Loan Book Breakdown – Stage 1|2|3 Breakdown of Loans & Advances to Customers N’million Stage 1 Stage 2 Stage 3 Total Communication 17,088 9,698 2,417 29,203 Oil and Gas 197,454 41,714 15,621 254,790 - Upstream 131,307 - - 131,307 - Downstream 36,692 11,141 14,525 62,358 - Services 29,456 30,573 1,09
Slide 27: NPL Analysis
NPL Analysis Gross Loans and Advances NPL ratio (Stage 3 Loans) declined to 4.8% from 5.7% in N'billion 2018FY due to an increase in the total loan book by 24.2% 1,126.5 1,024.2 1,050.2 Stage 3 Loans increased by 4.3% YTD to N53.9 billion, but 906.6 53.9 887.5 50.5 56.6 dropped by 4.9% QoQ compa
Slide 28: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans: 2018FY Vs. 9M 2019 2018FY 9M 2019 VAR % VAR 2018FY 9M 2019 N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,155 2,417 1,261 109.2% 5.1% 8.3% Oil and gas 12,374 15,621 3,247 26.2% 6.0% 6.1% - Oil & Gas Upstream - - - 0.0 0.0
Slide 29: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – 9M 2019 Others, 12.5% Power, 0.0% N’million 2018FY Q1 2018 H1 2019 9M 2019 Communication, Construction, 4.5% Oil & Gas: Communication 1,155 1,229 1,722 2,417 2.0% Upstream, 0.0% Oil and Gas 12,374 12,467 16,859 15,621 Oil & Gas:
Slide 30: Capital Adequacy
Capital Adequacy CAR is now 16.4% which remains well above the Capital Adequacy Ratio Computation – Basel II regulatory minimum requirement of 15.0%. N‘billion 2018FY 9M 2019 VAR Regulatory adjustment dropped to N14.1 billion on account of capitalized profit which boosted total equity in Tier 1
Slide 31: Strategic Business Units Analysis
Strategic Business Units Analysis Business Description Location Based Analysis Handles the bank’s institutional clients with turnover in excess of ₦5.0 billion. PBT Deposits Loans Corporate & Investment Key focus sectors include: Oil & gas upstream Oil & gas downstream 12.5% Banking Power
Slide 32: 9M 2019 Actual Vs. 2019FY Guidance
5. 9M 2019 Actual Vs. 2019FY Guidance 32 www.fidelitybank.ng 3
Slide 33: 9M 2019 Actual Vs. 2019FY Guidance
9M 2019 Actual Vs. 2019FY Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N Index 9M 2019 Actual 2019FY Target Comment 1 Net Interest Margin 6.0% 6.0% – 6.5% On Track 2 Tax Rate 6.7% 10.0% – 15.0% On Track 3 Loan Growth (YTD) 26.4% 7.5% - 10.0% On Track 4 Deposit Growth (YTD) 14.0% 7.5% - 10.0% On
Slide 34: Thank You
Thank You Fidelity Bank Plc 2 Kofo Abayomi Street, Victoria Island, Lagos, Nigeria +234 (01) 4480853 info.investor@fidelitybank.ng www.fidelitybank.ng www.fidelitybank.ng