Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — Q1 2021 Earnings Presentation
35 slides from Fidelity Bank's earnings presentation, Mar 31, 2021
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Unaudited Financial Results for the 3 months ended March 31, 2021 www.fidelitybank.ng
Slide 2: Outline
Outline 1. Overview of Fidelity Bank 2. The Operating Environment 3. Financial Highlights 4. Financial Review 5. Q1 2021 Actual Vs. 2021FY Guidance 2 www.fidelitybank.ng
Slide 3: 1. Overview of Fidelity Bank
1. Overview of Fidelity Bank 10 3 www.fidelitybank.ng 3
Slide 4: Overview of Fidelity Bank
Overview of Fidelity Bank Ownership 32.0bn Authorized Shares Listings: 28.96bn Shares Total Assets: N2,893bn Issued And 28.96bn Fully Paid $7.1bn 10yr N41.2bn due Jan 2022 NGN Bonds $400m Oct 2022 Eurobond Professional Staff 3,002 828 ATMs Male: 54% Operations 5.8 Million 2.4m Cards Female: 46% & Ac
Slide 5: Overview of Fidelity Bank
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) 5.8 424.4 441.6 54.5 5.7 53.8 53.4 5.3 4.5 44.8 3.9 275.2 37.6 228.0 178.6 2017 2018 2019 2020 Q1 2021 2017 2018 2019 2020 Q1 2021 2017
Slide 6: Transaction Volume Statistics
Transaction Volume Statistics Internet Banking (#’ Mn) Mobile Banking (# ‘Mn) NIP (# ‘Mn) 38.8 Q1 2021 10.1 Q1 2021 23.5 24.7 19.9 2020FY 27.0 2020FY 63.2 2019FY 15.2 2019FY 46.0 2019FY 2020FY Q1 2021 POS (#’ Mn) ATM (#’ Mn) In-Branch (# ‘Mn) 31.2 Q1 2021 8.4 Q1 2021 10.5 20.6 2020FY 26.3 2020FY 44.
Slide 7: 2. Operating Environment
2. Operating Environment 7810 www.fidelitybank.ng 3
Slide 8: The Operating Environment
The Operating Environment IMF revised its 2021 GDP growth forecast for Real GDP Growth Nigeria to 2.5% from its earlier projection of 1.5%, citing stronger economic recovery as the count of 2.6% 1.9% 0.1% Covid-19 vaccination increase. Q1 '19 Q2 '20 Q4 '20 -3.6% Headline inflation inched up furt
Slide 9: Key Regulatory & Policy Changes
Key Regulatory & Policy Changes MPR retained at 11.5% and the MPC left all policy rates (MPR, CRR and asymmetric corridor remain unchanged Liquidity Ratio) unchanged at its March at +100/-700bps. 2021 meeting. Also, CRR and Liquidity Ratio were kept CBN introduced Naira-for-Dollar Scheme, at
Slide 10: 2. Financial Review
2. Financial Review v 810 10 www.fidelitybank.ng 3
Slide 11: Financial Highlights
Financial Highlights Gross Earnings increased by 7.7% YoY to N55.1bn in Q1 2021 on account of 66.7% increase in Non-Interest Revenue to N12.1bn from N7.2bn in Q1 2020. In absolute figure, the increase in NIR came from FX Related Income, Digital Banking Income and Account Maintenance Charge etc.
Slide 12: Financial Highlights
Financial Highlights Summary of Income Statement: YoY Change N’million Q1 2020 Q1 2021 VAR % VAR Gross Earnings 51,159 55,122 3,963 7.7% Interest Income Loans 32,340 33,941 1,601 5.0% Interest Income Liquid Assets 11,586 9,121 (2,465) -21.3% Total Interest Income 43,926 43,062 (864) -2.0% Interest E
Slide 13: Financial Highlights
Financial Highlights Statement of Financial Position: YTD Change N’million 2020FY Q1 2021 VAR % VAR Total Assets 2,758,148 2,893,205 135,057 4.9% Earning Assets 1,828,807 1,896,527 67,720 3.7% Bank Placements 51,799 56,320 4,521 8.7% Treasury Bills 264,032 259,171 (4,861) -1.8% Bonds 186,870 154,781
Slide 14: Gross Earnings Analysis
Gross Earnings Analysis N’million Q1 2020 Q1 2021 VAR % VAR Total Earnings: Q1 2020 Total Earnings: Q1 2021 Total Earnings 51,159 55,122 3,963 7.7% Maint. Fee, 1% Trade, 1% Maint. Fee, 2% Trade, 1% Digital, 3% Interest Income Loans 32,340 33,941 1,601 5.0% Others, 5% Digital, 4% Others, 5% FX Income
Slide 15: Net Interest Margin Analysis
Net Interest Margin Analysis NIM remained unchanged at 6.3% compared to 2020FY, NIM Trend as drop in avg. funding cost compensated for the decline in yields on avg. earning assets. 6.6% 6.4% 6.3% 6.3% 6.3% The decline in avg. funding cost was led by improved deposit mix: Low cost deposits is now
Slide 16: Total Expense Analysis
Total Expense Analysis N’million Q1 2020 Q1 2021 VAR % VAR Total Expenses: Q1 2020 Total Expenses: Q1 2021 Total Expenses 21,628 22,963 1,335 6.2% Others Exp., 38% Staff Cost, 30% Others Exp., 26% Staff Cost, 24% Staff Cost 6,398 5,494 (904) -14.1% Depreciation 1,415 1,686 271 19.2% Energy, 1% Energ
Slide 17: 3. Financial Review - SFP
3. Financial Review - SFP 10 17 www.fidelitybank.ng 3
Slide 18: Funding Base Analysis
Funding Base Analysis N’million Q1 2020 Q1 2021 VAR % VAR Funding Structure: Q1 2020 Funding Structure: Q1 2021 Demand Deposits 734,787 937,695 202,908 27.6% Debt, 9% Equity, 12% Debt, 8% Equity, 10% Savings Deposits 312,109 441,572 129,463 41.5% Tenor Deposits 305,366 372,070 66,704 21.8% Other Bor
Slide 19: Deposits Analysis
Deposits Analysis Total customer deposits increased by 3.1% YTD to N1,751.3bn Total Deposits from N1,699.0bn in 2020FY. N’billion 23.7% 21.4% 21.2% 17.5% 18.3% While actual growth was 2.8%, the impact of FX rate adjustment accounted for only 0.3% growth in deposits. 1,751.3 1,699.0 1,405.9 1,498
Slide 20: Retail Banking Analysis (Personal Banking)
Retail Banking Analysis (Personal Banking) Savings deposits grew by 4.1% and now represent 25.2% of Savings Deposits Trend total deposits from 25.0% in 2020FY. N’billion 23.1% 25.9% 25.7% 25.0% 25.2% Savings deposits accounted for 32.9% of the growth in total customer deposits from 25.2% in 2020
Slide 21: Liquid Assets Position
Liquid Assets Position Short-term Funds Placements Treasury Bills Bonds 30.2% 1.9% 9.0% 5.3% 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 37.8% 66.0% 65.9% 35.0% 64.5% 61.4% 63.2% 33.9% 31.6% 32.1% 30.0% 30.0
Slide 22: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers: 2020FY Vs. Q1 2021 N’million 2020FY Q1 2021 VAR % VAR Communication 32,217 29,776 -2,441 - 7.6% Oil and Gas 315,155 374,558 59,403 18.8% - Upstream 157,939 159,777 1,838 1.2% - Downstream 71,448 99,096 27,648 38.7% - Services 85,767
Slide 23: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers Loan Analysis – Q1 2021 Agriculture, 2.9% Others, 6.0% Communication, N’million H1 2020 9M 2020 2020FY Q1 2021 2.0% Communication 31,521 30,548 32,217 29,776 Construction, Oil & Gas: 4.3% Upstream, 10.7% Oil and Gas 309,576 324,884 3
Slide 24: Loan Book Analysis
Loan Book Analysis Net loans & advances increased by 7.6% to N1,426.3bn, Net Loans and Advances to Customers with 87.1% of the loan book in term loans. N'billion Actual real loan growth was 6.8% while the adjustment in 1,426.3 - 1,326.1 1,165.8 1,209.1 1,272.5 10.1 exchange rate from N400.3/$ to
Slide 25: Impairment Analysis
Impairment Analysis Q1 2021 Impairment Charge Impairment Charge: Q1 2020 Vs. Q1 2021 (3,121) 582 Q1 2021 ( 1,266 ) ( 1,266 ) - 39.8% Stage 1 Stage 2 Stage 3 Total ( 2,103 ) Q1 2020 1,273 Q1 2020 Impairment Charge Total Impairment 2020FY Q1 2021 VAR % VAR (7,201) ( 2,103 ) FCY 16,716 16,231 -485 -2.9
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 Stage 1 Stage 2 Stage 3 Total Communication 16,097 12,088 1,591 29,776 54.1% 40.6% 5.3% 2.0% Oil and Gas 264,477 106,334 3,747 374,558 70.6% 28.4% 1.0% 25.1% - Upstream 87,191 72,586
Slide 27: Loan Book Breakdown – Stage 1|2|3
Loan Book Breakdown – Stage 1|2|3 YTD Change In Loan Book Stages: 2020FY Vs. Q1 2021 N’million Stage 1 Stage 2 Stage 3 Total Communication (2,187) 87 (341) (2,441) Oil and Gas 29,207 30,918 (722) 59,403 - Upstream (322) 2,160 0 1,838 - Downstream 30,581 (2,301) (633) 27,648 - Services (1,051) 31,059
Slide 28: NPL Analysis
NPL Analysis NPL ratio (Stage 3 Loans) dropped to 3.6% from 3.8% in Gross Loans and Advances 2020FY due to 7.3% increase in absolute Loan Book to N'billion N1,495.1bn. 1,495.1 FCY NPL accounted for 17.2% of total NPL Book and were 1,334.6 1,393.6 1,218.9 1,267.3 54.3 largely in the Transport sec
Slide 29: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans: 2020FY Vs. Q1 2021 2020FY Q1 2021 VAR % VAR 2020FY Q1 2021 N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,932 1,591 (341) -17.7% 6.0% 5.3% Oil and gas 4,469 3,747 (722) -16.2% 1.4% 1.0% - Oil & Gas Upstream - - - 0.0% 0.0
Slide 30: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – Q1 2021 Communication, Power, 0.0% Oil & Gas: N’million H1 2020 9M 2020 2020FY Q1 2021 2.9% Upstream, 0.0% Communication 4,014 2,982 1,932 1,591 Others, 32.1% Manufacturing, Oil and Gas 19,309 19,852 4,469 3,747 6.8% - Upstream
Slide 31: Capital Adequacy Ratio
Capital Adequacy Ratio CAR stood at 18.4%, well above the regulatory minimum Capital Adequacy Ratio Computation – Basel II requirement of 15.0%. N‘billion 2020FY Q1 2021 VAR Excluding the regulatory adjustment, CAR would have come in at 19.6%. Tier 1 Capital 224.3 224.3 0.0 Regulatory Adjustment
Slide 32: 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 and treasury PBT Deposits Loans business Corporate & Investment Key focus sectors include: 15.6% 32.3% Banking Treasury Conglomerate
Slide 33: 5. Q1 2021 Actual Vs. 2021FY Guidance
5. Q1 2021 Actual Vs. 2021FY Guidance 34 33 www.fidelitybank.ng 3
Slide 34: Q1 2021 Actual Vs. 2021FY Guidance
Q1 2021 Actual Vs. 2021FY Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N Index Q1 2021 Actual 2021FY Target Comment 1 PBT N10.1bn N35.2bn On Track 2 Loan Growth 7.6% 10.0% - 15.0% On Track 3 Deposit Growth 3.1% 15.0% - 20.0% Behind Target 4 Net Interest Margin 6.3% 6.0% - 6.5% On Track 5 Cost to
Slide 35: 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