Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — H1 2023 Earnings Presentation
30 slides from Fidelity Bank's earnings presentation, 2023
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Audited Financial Results for the 6 months ended June 30, 2023 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 (‘Fidelity’ or ‘the Bank’) audited financial statements for the period ended 30 June 2023. 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 10 3. Financial Review 13 4. 2023FY Guidance 29 3 Fidelity Bank information meant for public use
Slide 4: Fidelity Bank information meant for public use
Fidelity Bank information meant for public use
Slide 5: Overview of Fidelity Bank
Overview Operating Environment Financial Review Guidance Business Segment > 250 Business Offices 26.5% > 8.0m+Customer Accounts Revenue 53.0% 20.5% Our Vision: > 3,011 To be number 1 in every market we serve and for every branded Professional Staff 11.7% products we offer > 155 Call Centre Agents PB
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 59.6% 23.2% 200bps N247.1bn N3,178.8bn 16.1% Operating Income Net Loans & Advances NPL 102.9% 25.1% 30bps N180.8bn N2,647.7bn 3.2% Operating
Slide 8: Deepening strong growth in NII and customer reach through digital banking
Overview Operating Environment Financial Review Guidance Deepening strong growth in NII and customer reach through digital banking Mobile/Online Customers # NIP Value (N’bn) E - Banking Transaction #’Mn 10.2% YTD > 4.7m+ 56% Mkt Share 91% % Total Trnx 12,975 293.3 91% 8,328 Debit Cardholders # 153.2
Slide 9: Fidelity Bank information meant for public use
Fidelity Bank information meant for public use
Slide 10: Overview - Operating Environment
Overview Operating Environment Financial Review Guidance v Real GDP grew by 20bps to 2.51% in Q2 2023 compared to 2.31% in Real GDP Growth Q1 2023. 3.98% 3.54% 3.52% v Agriculture, Manufacturing, Construction, Trade, Information, 2.51% 3.11% Education, and Financial etc. were the top drivers of grow
Slide 11: Key regulatory and policy changes
Overview Operating Environment Financial Review Guidance Key regulatory and policy changes v IMF upgrades Nigeria’s 2023 economic growth prospects v Nigerians go to the polls on 25th Feb to elect a new to 3.2% from 3.0%. president and members of the Senate and House of Representatives. v CBN, Police
Slide 12: Fidelity Bank information meant for public use
Fidelity Bank information meant for public use
Slide 13: Financial Performance Highlights - SCI
Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SCI Summary of Income Statement Ø The combination of 39.4% growth in interest N’million H1 2022 H1 2023 % VAR income and 207.2% increase in non-interest income, led to 59.6% growth in gross earnings. Gross Ea
Slide 14: Increased non-interest income boosts revenue growth
Overview Operating Environment Financial Review Guidance Increased non-interest income boosts revenue growth 78.1% Breakdown of Gross Earnings Interest Income: Breakdown 80.6% N’billion H1 2022 H1 2023 VAR % VAR 39.4% Int. Inc. on Loans 106.5 165.4 59.0 55.4% 189.9 24.5 12.9% Int. Inc. on Liquid Ass
Slide 15: A combination of improved yield and lower funding cost boosted NIM
Overview Operating Environment Financial Review Guidance A combination of improved yield and lower funding cost boosted NIM Ø Higher asset yield and slight moderation in Avg. Yield on Earnings Assets avg. funding cost led to an increase in NIM to 12.7% 7.2% from 6.3% in 2022FY (H1 2022: 6.4%). 12.2%
Slide 16: Improved CIR to 46.8% despite increased operating expenses
Overview Operating Environment Financial Review Guidance Improved CIR to 46.8% despite increased operating expenses Breakdown of OPEX Key drivers of OPEX: % Contributions CIR N’billion H1 2022 H1 2023 % Growth Regulatory Charges 18.4 28.5 55.1% Staff Cost 15.2 17.3 13.5% 15.2% 67.1% Marketing|Comm|E
Slide 17: Financial Performance Highlights - SFP
Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SFP Statement of Financial Position Ø Earning assets represents 66.3% of total N’million 2022FY H1 2023 VAR % VAR assets and was responsible for 66.7% of the absolute growth in our balance sheet. Total Assets
Slide 18: Customer deposits is the largest funding source at 70.6% of total funding base
Overview Operating Environment Financial Review Guidance Customer deposits is the largest funding source at 70.6% of total funding base. N’million 2022FY H1 2023 VAR % VAR Ø Total customer deposits crossed the N3.0tn mark Demand Deposits 1,559,170 2,146,218 587,048 37.7% which boosted funding base.
Slide 19: Low-cost deposits accounted for 90.3% of total customer deposits
Overview Operating Environment Financial Review Guidance Low-cost deposits accounted for 90.3% of total customer deposits Customer Deposits (N’bn) Customer Deposits by Type 26.5% 26.2% 27.5% 23.6% 32.9% H1 2023 9.7% 3,178.8 2,580.6 2,667.6 16.4% 2,290.1 2,294.7 1,044.8 709.2 630.7 22.8% 606.0 601.3
Slide 20: Loans & Advances Analysis
Overview Operating Environment Financial Review Guidance Loans & Advances Analysis Net Loans & Advance (N’bn) Ø Net loans & advances increased by 25.1% to N2.6tn, 2,647.7 with 43.6% of the loan book within the 12 months or 1,989.3 2,116.2 2,161.4 441.6 less maturity portfolio. 1,912.7 0.1 19.8 57.1
Slide 21: 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 2023 Impairment Charge Impairment Charge N’billion ( 6.6 ) ( 19.9 ) H1 2023 19.9 ( 10.9 ) 902% ( 2.4 ) H1 2022 2.0 Stage 1 Stage 2 Stage 3 Total H1 2022 Impairment Charge Tota
Slide 22: 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 N’million H1 2022 9M 2022 2022FY Q1 2023 H1 2023 VAR % VAR Communication 37,250 40,860 37,878 42,825 69,406 26,581 62.1% Oil and Gas 506,863 519,401 565,913 572,678 877,77
Slide 23: 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 2023 Gross Loans by Sector Government; 8.5% Oil & Gas: Service; 10.9% N’million 2022FY H1 2023 VAR % VAR Communication 37,878 Consumer; 2.3%
Slide 24: Adequate coverage across stages with NPL coverage at 111.1%
Overview Operating Environment Financial Review Guidance Adequate coverage across stages with NPL coverage at 111.1% Gross Loan Book by Stage N’million Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Communication 54,505 10,855 4,046 69,406 78.5% 15.6% 5.8% 2.5% Oil and Gas 445,391 415,7
Slide 25: Non-performing loans (NPL) analysis
Overview Operating Environment Financial Review Guidance Non-performing loans (NPL) analysis NPL Analysis 2022FY H1 2023 VAR % VAR 2022FY H1 2023 N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,748 4,046 2,298 131.5% 4.6% 5.8% Oil and Gas 4,738 16,590 11,852 250.1% 0.8% 1.9% - Oi
Slide 26: 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 (H1 2023 Vs. 2022FY) Co mmunicatio n: 3% Vs 5% H1 2023 5%0% 0% Oil & Gas: Upstream: 0% Vs 0% 21% Transport: 18% Vs 19% 3.6% 3.
Slide 27: 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 – Basel II Capital Adequacy Ratio Trend N’billion N‘billion 2022FY H1 2023 VAR 0 19.1% 19.1% 19.0% 18.6% 3 0 % 16.1% Tier 1 Capita
Slide 28: Fidelity Bank information meant for public use
Fidelity Bank information meant for public use
Slide 29: Actual Vs. Target
Overview Operating Environment Financial Review Guidance Actual Vs. Target H1 2023 Actual 2023FY Target Comment PBT N76.3bn N70.0bn Achieved Loan Growth 25.1% 10.0% - 15.0% Achieved Deposit Growth 23.2% 15.0% - 20.0% Achieved Net Interest Margin 7.2% 6.0% - 6.5% Achieved Cost to Income Ratio 46.8% B
Slide 30: 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