Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — Q1 2015 Earnings Presentation
32 slides from Fidelity Bank's earnings presentation, May 18, 2015
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Unaudited Financial Results for the quarter ended March 31, 2015 12KLD0346_Client template1 18/05/2015 19:45:36
Slide 2: Outline
Outline 1 Fidelity Overview 2 Financial Highlights 3 Financial Review 4 2015 Guidance 12KLD0346_Client template1 18/05/2015 19:45:38
Slide 3: Overview of Fidelity Bank
Overview of Fidelity Bank Background Key Highlights A full service bank with International Authorisation established in 1987 and licensed by the Central Bank of Nigeria Total Assets N1,196.2 million The Bank currently has over 400,000 shareholders with the majority being Nigerian citizens and co
Slide 4: Outline
Outline 1 Fidelity Overview 2 Financial Highlights 3 Financial Review 4 2015 Guidance 12KLD0346_Client template1 18/05/2015 19:45:38
Slide 5: Performance Highlight
Performance Highlight Gross Earnings up by 12.5% to N34.8 billion in Q1 2015 (Q1 2014: N31.0 billion) Revenue Total fee income up by 54.0% to N9.2billion in Q1 2015 (Q1 2014: N6.0 billion) and Net Interest Margin increased to 6.2% in Q1 2015 ( 2014 FYE: 6.0%) Efficiency Ratio PBT increased b
Slide 6: Financial Highlights
Financial Highlights Summary of Income Statement – Q1 2015 Vs Q1 2014 Q1 2015 Q1 2014 VAR % VAR Gross Earnings 34,829 30,956 3,874 12.5% Interest Income Loans 18,570 16,724 1,847 11.0% Interest Income Liquid Assets 8,548 9,546 (997) -10.4% Total Interest Income 27,118 26,269 849 3.2% Interest Expens
Slide 7: Financial Highlights
Financial Highlights Summary of Income Statement – Q1 2015 Vs Q1 2014 Vs 2014 FYE QTR AVG Q1 2015 Q1 2014 2014 AVG VAR % VAR Gross Earnings 34,829 30,956 33,100 1,729 5.2% Interest Income Loans 18,570 16,724 17,745 825 4.6% Interest Income Liquid Assets 8,548 9,546 8,332 217 2.6% Total Interest Inco
Slide 8: Financial Highlights
Financial Highlights Summary of Income Statement– Quarterly Trend (Naira in million) Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Gross Earnings 34,829 36,378 32,765 32,303 30,956 Interest Income Loans 18,570 19,367 18,127 16,763 16,724 Interest Income Liquid Assets 8,548 8,122 7,163 8,497 9,546 Total In
Slide 9: Financial Highlights
Financial Highlights Statement of Financial Position: Q1 2015 Vs 2014 FYE (Naira in million) Q1 2015 2014 FYE VAR % VAR Total Assets 1,196,142 1,187,025 9,117 0.8% Earning Assets 804,666 818,993 -14,326 -1.7% Bank Placements 2,000 42,049 -40,049 -95.2% Treasury Bills 203,983 184,342 19,641 10.7% Bon
Slide 10: Financial Highlights
Financial Highlights Statement of Financial Position: Quarterly Trend (Naira in million) Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Total Assets 1,196,142 1,187,025 1,115,922 1,058,235 1,042,962 Earning Assets 804,666 818,993 774,260 718,383 698,829 Bank Placements 2,000 42,049 26,900 23,450 9,500 Trea
Slide 11: Financial Highlights
Financial Highlights PBT was driven by strong growth in non interest income. PBT increased by 5.6% to N4.7 billion despite the over 100% growth in provisions due to a conservative outlook by the bank Interest expense growth largely coming from long term borrowings, the 3.6% growth in interest ex
Slide 12: Outline
Outline 1 Fidelity Overview 2 Financial Highlights 3 Financial Review 4 2015 Guidance 12KLD0346_Client template1 18/05/2015 19:45:38
Slide 13: Gross Earnings Analysis
Gross Earnings Analysis Key Highlight (N’million) Q1 2015 Q1 2014 Gross Earnings : Q1-2015 Gross Earnings: Q1-2014 Gross Earnings 34,829 30,956 E-banking, 2% E-banking, 2% Others, 4% Others, 4% Interest Income Loans 18,570 16,724 COT, 2% COT, 4% FX Income, Interest Income Liquid Assets 8,548 9,546 F
Slide 14: Earnings Analysis
Earnings Analysis Net Interest Income Net interest income was negatively impacted by 10.4% N 'billion decline in interest income from liquid assets due to 12.9 12.4 increased reserve requirements from the CRR hikes Strong FX Trading income and E-banking fees. led to solid growth in fee based inc
Slide 15: Expense Analysis
Expense Analysis Key Highlight (N’million) Q1 2015 Q1 2014 Operating Exp: Q1-2015 Operating Exp: Q1-2014 Total Expenses 14,369 12,728 Staff 6,123 5,559 Others Exp., Depreciation 951 945 Others Exp., 29% Staff Cost, 30% Regulatory (NDIC/AMCON) 2,553 1,807 43% Staff Cost, Technology Cost 354 316 44% P
Slide 16: Cost Dynamics
Cost Dynamics Operating Expenses & Staff Cost Cost income ratio declined marginally from 72.4% to N‘billion % Share 71.5%. 16 14.4 100% 12.7 Media and advert cost increased in line with our retail 12 75% and electronic banking strategy. 8 50% Quarterly revenue growth from E-Banking (N278m) 4 4
Slide 17: Funding Structure
Funding Structure Key Highlights (N’m) Q1 2015 Q1 2014 Funding Structure: Q1 2015 Funding Structure: Q1 2014 Demand Deposits 429,472 373,935 Equity, 16% Equity, 17% Savings Deposits 105,581 82,842 Eurobond, Demand, Eurobond, 5% Time Deposits 262,487 295,496 40% 5% Demand, Borrowings, Borrowings, 38%
Slide 18: Deposit Analysis
Deposit Analysis Customer Deposits 2.7% marginal drop in customer deposits caused by N‘billion deliberate replacement of wholesale time deposits 820.0 797.5 with retail deposits leading to a 11.8% decline in Time. 752.3 Strong growth witnessed in retail deposits as savings deposits increase by 7
Slide 19: Retail Deposit Analysis (Personal Banking)
Retail Deposit Analysis (Personal Banking) Savings Deposits Trend Retail low cost deposits increased by 11.2% to N‘billion N187.4bn from N168.5bn in Dec 2014. 105.6 98.0 Retail customers now account for 35% of total low cost 82.8 82.3 86.3 deposits Savings deposits have grown steadily since th
Slide 20: Sound Liquidity Position
Sound Liquidity Position Liquidity Ratio Balance sheet optimisation leading to the drop in wholesale time deposits caused a drop in the liquidity 38.0% ratio. 32.6% However, liquidity ratio remains above regulatory 30.0% 30.0% minimum of 30.0% Currently 90.0% of qualified liquid assets is inve
Slide 21: Portfolio Analysis
Portfolio Analysis Breakdown of Loans & Advances: Q1 2015 Vs 2014 FYE N’million Q1 2015 2014 FYE VAR % VAR Communication 73,200 76,480 (3,280) -4.3% Oil and gas 144,147 134,750 9,397 7.0% Power 59,641 57,626 2,015 3.5% Manufacturing 51,778 51,323 455 0.9% General Commerce 47,436 47,502 (66) -0.1% Tr
Slide 22: Portfolio Analysis
Portfolio Analysis Breakdown of Loans & Advances Portfolio Analysis – Q1 2015 Agriculture, Real Estate, Others, 8.3% N’million Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 2.7% 2.3% Communication, Construction, 13.0% Communication 73,200 76,480 86,204 87,229 87,973 3.4% Government, Oil and gas 144,147 13
Slide 23: Loan Book Analysis
Loan Book Analysis Muted loan growth in Q1 2015 due to slow pre-election Net Loans and Advances to Customers operating environment. N'billion LCY loans declined by N12..1bn (3.8%) from Dec 2014 546.9 due to a deliberate portfolio reduction in perceived more venerable segments e.g. Government and
Slide 24: Portfolio Analysis
Portfolio Analysis Breakdown of Non-performing Loans: Q1 2015 Vs 2014 FYE (Naira in million) Q1 2015 2014 FYE N’million % Contr. % NPL N’million % Contr. % NPL Communication 3,431 15.8% 4.7% 3,628 14.9% 4.7% Oil and gas 622 2.9% 0.4% 605 2.5% 0.4% Power 0 0.0% 0.0% 0 0.0% 0.0% Manufacturing 7,197 33
Slide 25: Portfolio Analysis
Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – Q1 2015 Real Estate, 1.6% Communication, 15.8% N’million Others, 9.9% Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Agriculture, 3.0% Oil and gas, Communication 3,431 3,628 4,458 3,089 3,086 Construction, 2.9% 2.4% Oil and gas 622 605 2,1
Slide 26: NPL Analysis
NPL Analysis Gross Loans & Advances Improved risk assets monitoring and aggressive N'billion collections resulted in lower NPL of 3.8% compared to 564.7 4.4% in 2014 FYE and 3.9% as at March 31, 2014. 559.1 Major sectors driving the decline in NPLs include Government, Manufacturing, Telecoms, Co
Slide 27: Capital Adequacy
Capital Adequacy Capital Adequacy Ratio Fidelity remains well capitalized with strong Capital N'billion % Ratio Adequacy Ratio (CAR) of 22.6% compared to the 173.1 178.1 180 40% regulatory minimum requirement of 15.0%. 30% 120 Total equity gained 2.8% to N178.0 billion as earnings 23% 23% 20% 60
Slide 28: Business Segment Analysis
Business Segment Analysis Business Description Revenue Deposits Loans Handles the bank’s institutional clients with turnover in excess of ₦10.0bn. Corporate & Investment Key focus sectors include: 39.9% 16.6% Oil & gas upstream Oil & gas downstream 75.0% Banking Power & infrastructure Te
Slide 29: Update On Bond Issuance
Update On Bond Issuance All regulatory approvals have been received for the N30bn local debt issuance Pricing is fixed at 200bps above 7 year FGN bond using a 30 days average price discovery. The debt issuance is expected to be completed by mid May 2015. The proceeds will be deployed to fund
Slide 30: Outline
Outline 1 Fidelity Overview 2 Financial Highlights 3 Financial Review 4 2015 Guidance 12KLD0346_Client template1
Slide 31: Growth Expectations
Growth Expectations GROWTH EXPECTATIONS ON KEY INDICATORS S/N INDEX 2014 Actual Q1 2015 Actual 2015 TARGET COMMENT 1 Net Interest Margin 6.0% 6.2% 7% On Track 2 Tax Rate 11.1% 15% 10% to 15% On Track Behind Target - Utilization of bond proceeds 3 Loan Growth 27.1% 0.9% 10% expected to boost loan gro
Slide 32: Thank You
MP rrvenrry Thank You