Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — H1 2018 Earnings Presentation
35 slides from Fidelity Bank's earnings presentation, 2018
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Audited Financial Results for the 6 months ended June 30, 2018 www.fidelitybank.ng
Slide 2: Outline
Outline 1. Overview of Fidelity Bank 2. The Operating Environment 3. Financial Highlights 4. Financial Review 5. H1 2018 Actual Vs. 2018FY Guidance 2 www.fidelitybank.ng
Slide 3: 1. Overview of Fidelity Bank
1. Overview of Fidelity Bank 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: N1,567bn Issued And 28.96bn Fully Paid $4.7bn 7yr N30bn May 2022 NGN Bonds $400m Oct 2022 Eurobond Professional Staff 3,016 778 ATMs Male: 57% Operations 4.2 Million Female: 43% & Accounts 2m Cards Co
Slide 5: Overview of Fidelity Bank: Retail & Digital Banking Progress
Overview of Fidelity Bank Retail & Digital Banking Evolution & Progress Report Number of Customer Accounts (#’m) Savings deposits (N’bn) Retail Risk Assets (N’bn) 4.2 197.5 3.9 66.0 3.6 178.6 3.3 155.0 57.2 52.8 2.8 119.1 44.8 39.3 98.0 2014 2015 2016 2017 H1 2018 2014 2015 2016 2017 H1 2018 2014 20
Slide 6: 2. The Operating Environment
2. The Operating Environment www.fidelitybank.ng 6 6 6
Slide 7: The Operating Environment
The Operating Environment MPC maintains CRR at Credit to Private Sector 22.5% in H1 2018 improving Political risk Improving Foreign impacts on the Reserves Capital & Money Improving yields as Market inflation rate Naira has been moderates relatively stable Monetary Policy Slower growth in Stability:
Slide 8: 3. Financial Highlights
3. Financial Highlights 8 www.fidelitybank.ng 3
Slide 9: Performance Highlights
Performance Highlights Total Interest Income up by 2.5% to N72.9 billion in H1 2018 (H1 2017: N71.1 billion) Revenue Operating Expenses up by 5.7% to N32.7 billion in H1 2018 (H1 2017: N30.9 billion) and Cost to Income Ratio inched up marginally to 67.7% in H1 2018 from 67.3% in H1 2017 Effici
Slide 10: Financial Highlights
Financial Highlights PBT increased by 27.3% YoY to N13.0 billion as quarterly profits increased by over 60% moving from N5.0bn in Q1 to N8.0bn in Q2: double digit growth in earning assets, deposits and fee income were key drivers. Operating expenses increased by 5.7% YoY driven by increased tech
Slide 11: Financial Highlights: Income Statement YoY
Financial Highlights Summary of Income Statement: YoY Change N’million H1 2017 H1 2018 VAR % VAR Gross Earnings 85,821 88,917 3,096 3.6% Interest Income Loans 53,461 50,684 (2,777) -5.2% Interest Income Liquid Assets 17,636 22,192 4,556 25.8% Total Interest Income 71,097 72,876 1,779 2.5% Interest E
Slide 12: Financial Highlights: Income Statement QoQ
Financial Highlights Summary of Income Statement: QoQ Change N’million Q1 2018 Q2 2018 VAR % VAR Gross Earnings 43,680 45,237 1,557 3.6% Interest Income Loans 28,345 22,339 (6,006) -21.2% Interest Income Liquid Assets 10,121 12,071 1,949 19.3% Total Interest Income 38,466 34,410 (4,056) -10.5% Inter
Slide 13: Statement of Financial Position: YTD Change
Financial Highlights Statement of Financial Position: YTD Change N’million 2017FY H1 2018 VAR % VAR Total Assets 1,379,214 1,567,562 188,348 13.7% Earning Assets 977,076 1,075,986 98,910 10.1% Bank Placements 8,475 39,677 31,202 368.2% Treasury Bills 90,223 142,189 51,966 57.6% Bonds 109,641 98,752
Slide 14: Statement of Financial Position: QoQ Trend
Financial Highlights Statement of Financial Position: QoQ Trend N’million Q1 - 2018 Q2 - 2018 VAR % VAR Total Assets 1,479,665 1,567,562 87,897 5.9% Earning Assets 1,027,853 1,075,986 48,133 4.7% Bank Placements 44,125 39,677 (4,448) -10.1% Treasury Bills 142,129 142,189 60 0.0% Bonds 102,872 98,752
Slide 15: 4. Financial Review – SCI
4. Financial Review – SCI 14 www.fidelitybank.ng 15
Slide 16: Gross Earnings Analysis
Gross Earnings Analysis Key Highlights (N’m) H1 2017 H1 2018 VAR % VAR Total Earnings: H1 2017 Total Earnings: H1 2018 Total Earnings 85,821 88,917 3,096 3.6% Trade, 1% Maint. Fee, 2% Trade, 1% Maint. Fee, 1% E-banking, 4% Others, 9% Interest Income Loans 53,461 50,684 (2,777) -5.2% E-banking, 4% Ot
Slide 17: Net Interest Margin Analysis
Net Interest Margin Analysis NIM dropped to 6.5% from 7.3% in 2017FY as the decline in NIM Trend our average yield on earning assets outpaced the improved funding cost in H1 2018. 7.0% 7.4% 7.3% 7.4% Average funding costs dropped to 6.6% on account of 6.5% improved deposit pricing as average cos
Slide 18: Total Expense Analysis
Total Expense Analysis Key Highlights (N’m) H1 2017 H1 2018 VAR % VAR Total Expenses: H1 2017 Total Expenses: H1 2018 Total Expenses 30,901 32,659 1,758 5.7% Others Exp., 36% Staff Cost, 36% Others Exp., 33% Staff Cost, 32% Staff Cost 11,074 10,499 -575 -5.2% Depreciation 1,855 2,816 961 51.8% NDIC/
Slide 19: Cost Dynamics – YoY Breakdown
Cost Dynamics – YoY Breakdown Breakdown of Operating Expenses: 2017 AVG. Vs. H1 2017 Vs. H1 2018 N’million 2017 AVG. H1 2017 H1 2018 VAR % VAR Branding & advert 4,087 4,536 3,396 (1,140) -25.1% Staff cost 12,268 11,074 10,499 (575) -5.2% Energy (Electricity & Diesel) 692 744 682 (62) -8.3% Repairs a
Slide 20: 4. Financial Review - SFP
4. Financial Review - SFP 20 www.fidelitybank.ng 3
Slide 21: Funding Base Analysis
Funding Base Analysis Key Highlights (N’m) 2017FY H1 2018 VAR % VAR Funding Structure: 2017FY Funding Structure: H1 2018 Demand Deposits 418,472 487,244 68,772 16.4% Equity, 16% Debt, 11% Equity, 13% Debt, 14% Savings Deposits 178,570 197,509 18,939 10.6% Tenor Deposits 178,234 243,180 64,946 36.4%
Slide 22: Deposits Analysis
Deposits Analysis Total deposits increased by 19.7% YTD (8.0% QoQ) to Customer Deposits N927.9 billion from N775.3 billion in 2017FY. N'billion Deposit growth was across ALL products and we have 927.9 859.4 already achieved our guidance for the 2018FY 761.1 774.4 775.3 Low cost deposits now co
Slide 23: Retail Banking Analysis (Personal Banking)
Retail Banking Analysis (Personal Banking) Savings deposits grew by 10.6% YTD which contributed to Savings Deposits Trend the decline in our funding cost. N'billion 21.2% 21.2% 23.0% 21.9% 21.3% Growth was as a result of the disciplined execution of our retail banking strategy and improved cross
Slide 24: Liquid Assets Position
Liquid Assets Position Short-term Funds Placements Treasury Bills Bonds 19.4% 0.8% 8.7% 9.2% As a % of Total Assets As a % of Total Assets As a % of Total Assets As a % of Total Assets Liquidity Ratio % Total Loans to Customer Deposits 35.9% 36.0% 82.8% 84.7% 34.4% 80.4% 33.2% 72.3% 71.0% 30.2% 30.0
Slide 25: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers: 2017FY Vs. H1 2018 N’million 2017FY H1 2018 VAR % VAR Communication 37,874 40,614 2,740 7.2% Oil and Gas 204,695 198,294 -6,401 - 3.1% - Upstream 148,544 134,478 -14,066 - 9.5% - Downstream 27,362 30,848 3,486 12.7% - Services 28,79
Slide 26: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers Loan Analysis – H1 2018 Construction, 3.4% Agriculture, Others, 4.9% N’million Q3 2017 Q4 2017 Q1 2018 Q2 2018 1.1% Oil & Gas: Communication, Communication 40,953 37,874 43,562 40,614 Service, 3.9% 4.8% Oil and Gas 212,551 204,695 19
Slide 27: Loan Book Analysis
Loan Book Analysis Net loans increased by 3.5% YTD (7.7% QoQ) to N795.4 Net Loans and Advances to Customers billion, Gross Loan growth in H1 2018 was 7.1% N'billion Loan growth was principally driven by 4 sectors: 768.7 795.4 720.2 753.8 738.7 Manufacturing, Gen. Commerce, Transport and Public s
Slide 28: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans: 2017FY Vs. H1 2018 2017FY H1 2018 VAR % VAR 2017FY H1 2018 N'million N'million N'million NPL Ratio NPL Ratio Communication 1,537 1,609 73 4.7% 4.1% 4.0% Oil and gas 13,624 13,148 (477) -3.5% 6.7% 6.6% - Oil & Gas Upstream - - - 0.0% 0.0% 0.0%
Slide 29: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – H1 2018 Others, 11.5% Communication, Power, 0.0% N’million Q3 2017 Q4 2017 Q1 2018 Q2 2018 Construction, 3.1% Communication 1,713 1,537 1,557 1,609 0.7% Oil & Gas: Upstream, 0.0% Oil and Gas 8,468 13,624 12,891 13,148 Oil & Gas:
Slide 30: NPL Analysis
NPL Analysis NPL ratio declined to 6.1% from 6.4% in 2017FY principally Gross Loans and Advances due to the 7.1% YTD increase in gross loan book. N'billion 852.1 785.4 795.3 794.3 Absolute NPLs increased by 2.0% due to N1.8 billion 749.3 46.5 50.7 50.3 51.7 43.4 increase in the transport sector.
Slide 31: Capital Adequacy
Capital Adequacy Fidelity CAR improved to 17.0% from 16.0% in 2017FY as Capital Adequacy Ratio Computation – Basel II capitalized profit increased Tier 1 Capital by N10.1 billion. N‘billion 2017FY H1 2018 VAR Credit risk dropped by N50.4 billon to N819.0 billion due to increased collaterals on r
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 ₦5.0bn. PBT Deposits Loans Corporate & Investment Key focus sectors include: Oil & gas upstream Oil & gas downstream 13.4% Banking 46.5% Power
Slide 33: 5. H1 2018 Vs. 2018FY Guidance
5. H1 2018 Vs. 2018FY Guidance 42 www.fidelitybank.ng 3 33
Slide 34: H1 2018 Vs. 2018FY Guidance
H1 2018 Vs. 2018FY Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N Index H1 2018 Actual 2018FY Target Comment 1 Net Interest Margin 6.5% 6.5% - 7.0% On Track 2 Tax Rate 9.0% 10.0% - 12.0% On Track 3 Loan Growth (YTD) 3.5% 7.5% - 10.0% Behind Target 4 Deposit Growth (YTD) 19.7% 10.0% - 15.0% On Tr
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