Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — H1 2019 Earnings Presentation
33 slides from Fidelity Bank's earnings presentation, 2019
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Audited Financial Results for the 6 months ended June 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. H1 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: N1,940bn Issued And 28.96bn Fully Paid $5.4bn 7yr N30bn May 2022 NGN Bonds $400m Oct 2022 Eurobond Professional Staff 2,933 816 ATMs Male: 55% Operations 4.8 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) 247.7 66.0 4.8 228.0 4.5 57.2 3.9 178.6 3.6 155.0 44.8 3.3 37.6 39.2 119.1 2015 2016 2017 2018 H1 2019 2015 2016 2017 2018 H1 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 Q2 2019 Private Sector Improving Foreign Political risk impacts Reserves on the Capital & Money Market Declining yields due to Naira has been regulations relatively stable Slower growth in Monetary Policy GDP – Q1 2019 w
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 7.2% to N85.8 billion in H1 2019 (H1 2018: N80.0 billion) Revenue Operating Expenses up by 16.9% to N38.2 billion in H1 2019 (H1 2018: N32.7 billion) and Cost to Income Ratio increased to 72.8% in H1 2019 from 67.7% in H1 2018 Efficiency Ratio
Slide 10: Financial Highlights
Financial Highlights Gross earnings increased by 12.3% to N103.7 billion on account of double digit growth across key income lines: credit related fees (238.7%) , FX income (76.1%), trade income (75.7%), digital banking income (26.3%), account maintenance charge (20.3%) and interest income on loan
Slide 11: Financial Highlights
Financial Highlights Total customer deposits increased by 12.0% YTD to N1,097.0 billion from N979.4 billion in 2018FY on the back of an increase in both local and foreign currency deposits. Domiciliary account deposits at N215.5 billion now account for almost 20.0% of total deposits. Savings d
Slide 12: Financial Highlights: Summary of Income Statement
Financial Highlights Summary of Income Statement: YoY Change N’million H1 2018 H1 2019 VAR % VAR Gross Earnings 92,295 103,655 11,360 12.3% Interest Income Loans 57,855 63,625 5,770 10.0% Interest Income Liquid Assets 22,192 22,205 13 0.1% Total Interest Income 80,047 85,830 5,783 7.2% Interest Expe
Slide 13: Financial Highlights: Statement of Financial Position
Financial Highlights Statement of Financial Position: YTD Change N’million 2018FY H1 2019 VAR % VAR Total Assets 1,719,883 1,940,163 220,280 12.8% Earning Assets 1,198,988 1,373,011 174,023 14.5% Bank Placements 58,755 85,113 26,358 44.9% Treasury Bills 189,236 166,675 (22,561) -11.9% Bonds 101,117
Slide 14: Gross Earnings Analysis
Gross Earnings Analysis Key Highlights (N’m) H1 2018 H1 2019 VAR % VAR Total Earnings: H1 2018 Total Earnings: H1 2019 Total Earnings 92,295 103,655 11,360 12.3% Maint. Fee, 2% Trade, 1% Maint. Fee, 2% Trade, 1% Interest Income Loans 57,855 63,625 5,770 10.0% Digital, 4% Digital, 4% Others, 6% Other
Slide 15: Net Interest Margin Analysis
Net Interest Margin Analysis NIM improved to 5.8% in H1 2019 driven primarily by the NIM Trend improvement in the yield on earning assets to 13.5% However, funding costs remained unchanged in Q2 2019, 7.1% 6.7% which boosted NIM as asset yields increased. 5.8% 5.8% 5.1% We are still behind our
Slide 16: Total Expense Analysis
Total Expense Analysis Key Highlights (N’m) H1 2018 H1 2019 VAR % VAR Total Expenses: H1 2018 Total Expenses: H1 2019 Total Expenses 32,659 38,169 5,510 16.9% Others Exp., 33% Staff Cost, 32% Others Exp., 37% Staff Cost, 31% Staff Cost 10,499 11,675 1,176 11.2% Depreciation 2,816 2,377 -439 -15.6% N
Slide 17: Financial Review - SFP
4. Financial Review - SFP 17 www.fidelitybank.ng 6 6 6
Slide 18: Funding Base Analysis
Funding Base Analysis Key Highlights (N’m) 2018FY H1 2019 VAR % VAR Funding Structure: 2018FY Funding Structure: H1 2019 Demand Deposits 571,329 561,066 (10,263) -1.8% Debt, 11% Equity, 12% Debt, 10% Equity, 12% Savings Deposits 227,970 247,672 19,702 8.6% Tenor Deposits 180,114 288,273 108,159 60.1
Slide 19: Deposits Analysis
Deposits Analysis Total deposits increased by 12.0% to N1,097.0 billion from Total Deposits N979.4 billion in 2018FY. N’billion 87.8% 89.1% 81.6% 80.8% 80.4% FCY deposits increased by 19.9% YTD and now accounts 1,097.0 for nearly 20.0% of total deposits. 986.8 979.4 1,017.0 927.9 215.5 113.4 99.
Slide 20: Retail Banking Analysis (Personal Banking)
Retail Banking Analysis (Personal Banking) Savings deposits grew by 8.6% YTD to N247.7 billion and Savings Deposits Trend accounts for 22.6% of total deposits, an attestation of our N’billion increasing market share in the retail segment. 21.3% 20.4% 23.3% 23.8% 22.6% We expect the trend in savi
Slide 21: Liquid Assets Position
Liquid Assets Position Short-term Funds Placements Treasury Bills Bonds 25.9% 4.4% 8.6% 6.3% As a % of Total Assets As a % of Total Assets As a % of Total Assets As a % of Total Assets Liquidity Ratio % Net Loans to Customer Deposits 38.3% 39.0% 71.0% 72.4% 37.2% 70.3% 67.2% 69.7% 34.8% 33.2% 30.0%
Slide 22: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers: 2018FY Vs. H1 2019 N’million 2018FY H1 2019 VAR % VAR Communication 22,463 25,426 2,963 13.2% Oil and Gas 207,918 227,370 19,452 9.4% - Upstream 120,489 118,805 -1,683 - 1.4% - Downstream 32,950 46,489 13,539 41.1% - Services 54,480
Slide 23: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers Loan Analysis – H1 2019 Agriculture, 3.5% Others, 4.8% Communication, N’million 9M 2018 2018FY Q1 2019 Q2 2019 2.4% Construction, Communication 36,685 22,463 25,972 25,426 3.5% Oil & Gas: Upstream, 11.3% Oil and Gas 219,935 207,918 2
Slide 24: Loan Book Analysis
Loan Book Analysis Net loans and advances increased by 17.6% YTD to N999.3 Net Loans and Advances to Customers billion and this was primarily driven by 4 sectors that N’billion accounted for over 95% of the loan growth as follows: 57.9% 57.5% 58.9% 58.1% 60.9% Manufacturing (50.7%), Transport (2
Slide 25: 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 14,090 9,614 1,722 25,426 Oil and Gas 149,014 61,497 16,859 227,370 - Upstream 86,950 31,855 0 118,805 - Downstream 18,024 15,533 12,932 46,489 - Services 44,041 14,109
Slide 26: NPL Analysis
NPL Analysis NPL ratio (Stage 3 Loans) declined to 5.4% from 5.7% in Gross Loans and Advances 2018FY due to an increase in the total loan book by 15.8% N'billion Stage 3 Loans increased by 9.7% to N56.6 billion in H1 2019 1,050.2 1,024.2 852.1 887.5 906.6 56.6 50.5 The key sectors responsible
Slide 27: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans: 2018FY Vs. H1 2019 2018FY H1 2019 VAR % VAR 2018FY H1 2019 N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,155 1,722 566 49.0% 5.1% 6.8% Oil and gas 12,374 16,859 4,485 36.2% 6.0% 7.4% - Oil & Gas Upstream - - - 0.0% 0.0%
Slide 28: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – H1 2019 Others, 12.4% Communication, Power, 0.0% N’million 9M 2018 2018FY Q1 2018 H1 2019 3.0% Communication Oil & Gas: 1,597 1,155 1,229 1,722 Construction, 2.9% Upstream, 0.0% Oil and Gas 13,299 12,374 12,467 16,859 Oil & Gas:
Slide 29: Capital Adequacy
Capital Adequacy Fidelity CAR improved to 17.0% from 16.7% in 2018FY as Capital Adequacy Ratio Computation – Basel II capitalized H1 2019 profits and Fair Value Reserves increased both Tier I and Tier 2 Capital. N‘billion 2018FY H1 2019 VAR Regulatory adjustment dropped by N4.5 billion to N11.8
Slide 30: 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 10.8% Banking Power
Slide 31: H1 2019 Actual Vs. 2019FY Guidance
5. H1 2019 Actual Vs. 2019FY Guidance 31 www.fidelitybank.ng 3
Slide 32: H1 2019 Actual Vs. 2019FY Guidance
H1 2019 Actual Vs. 2019FY Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N Index H1 2019 Actual 2019FY Target Comment 1 Net Interest Margin 5.8% 6.0% – 6.5% Behind Target 2 Tax Rate 9.1 10.0% – 15.0% On Track 3 Loan Growth (YTD) 17.6% 7.5% - 10.0% On Track 4 Deposit Growth (YTD) 12.0% 7.5% - 10.0%
Slide 33: 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