Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Audited Financial Results for the 12 months ended December 31, 2020 www.fidelitybank.ng
Slide 2: Outline
Outline 1. Overview of Fidelity Bank 2. The Operating Environment 3. Financial Highlights 4. Financial Review 5. 2020FY Actual Vs. 2021FY Guidance 2 www.fidelitybank.ng
Slide 3: 1. Overview of Fidelity Bank
1. Overview of Fidelity Bank www.fidelitybank.ng 3 3
Slide 4: Overview of Fidelity Bank
Overview of Fidelity Bank Ownership 32.0bn Authorized Shares 28.96bn Shares Total Assets: N2,758bn Issued And 28.96bn Fully Paid Listings: $6.9bn $400m Oct 2022 Eurobond Professional Staff 2,945 829 ATMs Male: 54% Operations 5.7 Million 2.3m Cards Female: 46% & Accounts Contact Channels 3.0m Mobile
Slide 5: Overview of Fidelity Bank: Retail and Digital Banking Evolution
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) 5.7 424.4 57.2 5.3 53.8 53.4 4.5 44.8 3.9 275.2 37.6 3.6 228.0 178.6 155.0 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017
Slide 6: Transaction Volume Statistics
Transaction Volume Statistics Internet Banking (#’ Mn) Mobile Banking (# ‘Mn) NIP (# ‘Mn) 56.9% 2020FY 27.0 2020FY 63.2 38.8 78.3% 37.5% 24.7 2019FY 15.2 2019FY 46.0 2019FY 2020FY POS (#’ Mn) ATM (#’ Mn) In-Branch (# ‘Mn) -34.1% 2020FY 26.3 2020FY 44.6 31.2 44.2% -23.5% 20.6 2019FY 18.2 2019FY 58.4
Slide 7: Operating Environment
3. Operating Environment v 810 www.fidelitybank.ng 3
Slide 8: The Operating Environment
The Operating Environment The Nigerian economy exited recession in Q4 ‘20 Real GDP Growth as growth in Telecoms and Agriculture sectors etc. offset the impact of lower oil prices. 2.6% 1.9% 0.1% GDP growth in Q4 ‘20 was 0.11% from -3.6% in Q1 '19 Q2 '20 Q4 '20 Q3 ‘20. However, the full-year 2020
Slide 9: Key Regulatory & Policy Changes
Key Regulatory & Policy Changes MPC retained policy rate at 13.5% but MPR reviewed downward to 11.5% from increased CRR by 500bpts to 27.5%. 12.5%, while the asymmetric corridor was lowered from +200/-500bps to +100/-700bps. CBN kept the LDR unchanged at 65.0% for Deposit Money Banks (DMBs).
Slide 10: Covid-19 Pandemic: Our Response
Covid-19 Pandemic: Our Response Two Committees headed by Executive Directors were setup to focus on the impact of the pandemic on our Business Strategy and Business Continuity Business Strategy Business Continuity Conducted early assessment of the pandemic Introduced new Covid-19 protocol that l
Slide 11: 2. Financial Highlights
2. Financial Highlights 11 www.fidelitybank.ng 3
Slide 12: Financial Highlights
Financial Highlights Net interest margin (NIM) improved to 6.3% from 6.2% in 2019FY on account of a 270bpts drop in average funding cost to 3.6% from 6.3% in 2019FY. This translated to a 28.6% drop in total interest expenses despite a 31.3% increase in interest bearing liabilities. NIM stood above
Slide 13: Financial Highlights
Financial Highlights Total deposits increased by 38.7% to N1,699.0bn from N1,225.2bn in 2019FY as we recorded strong growth across all deposit products. LCY deposits came in at N1,400.1bn representing 82.5% of total deposits while FCY deposits increased by 3.3% to N298.2bn and now accounts for 17.
Slide 14: Financial Highlights: Income Statement YoY
Financial Highlights Summary of Income Statement: YoY Change N’million 2019FY 2020FY VAR % VAR Gross Earnings 218,011 206,204 (11,807) -5.4% Interest Income Loans 139,204 130,476 (8,728) -6.3% Interest Income Liquid Assets 45,637 46,277 640 1.4% Total Interest Income 184,841 176,753 (8,088) -4.4% In
Slide 15: Financial Highlights: Income Statement QoQ
Financial Highlights Summary of Income Statement: QoQ Change N’million Q1 2020 Q2 2020 Q3 2020 Q4 2020 VAR % VAR Gross Earnings 51,159 54,596 49,275 51,174 1,898 3.9% Interest Income Loans 32,340 31,373 33,208 33,555 347 1.0% Interest Income Liquid Assets 11,586 12,323 11,639 10,729 (910) -7.8% Tota
Slide 16: Financial Highlights: Financial Position YTD
Financial Highlights Statement of Financial Position: YTD Change N’million 2019FY 2020FY VAR % VAR Total Assets 2,114,037 2,758,148 644,111 30.5% Earning Assets 1,474,252 1,828,807 354,555 24.0% Bank Placements 55,812 51,799 (4,013) -7.2% Treasury Bills 183,363 264,032 80,669 44.0% Bonds 108,103 186
Slide 17: Financial Highlights: Financial Position QoQ
Financial Highlights Statement of Financial Position: QoQ Change N’million Q1 2020 H1 2020 9M 2020 2020FY VAR % VAR Total Assets 2,246,788 2,403,234 2,575,198 2,758,148 182,950 7.1% Earning Assets 1,522,752 1,578,092 1,703,347 1,828,807 125,460 7.4% Bank Placements 57,133 70,443 53,615 51,799 (1,816
Slide 18: Gross Earnings Analysis
Gross Earnings Analysis N’million 2019FY 2020FY VAR % VAR Total Earnings: 2019FY Total Earnings: 2020FY Total Earnings 218,011 206,204 (11,807) -5.4% Trade, 1% Maint. Fee, 1% Trade, 1% Maint. Fee, 2% Interest Income Loans 139,204 130,476 (8,728) -6.3% Others, 6% Digital, 4% Others, 4% Digital, 4% In
Slide 19: Net Interest Margin Analysis
Net Interest Margin Analysis NIM improved to 6.3% from 6.2% in 2019FY, largely due to NIM Trend 270bps drop in average funding cost despite a drop in yields on earnings assets. 6.6% 6.4% 6.3% 6.3% 6.2% The decline in average funding cost was due to a combination of lower interest rate environmen
Slide 20: Total Expense Analysis
Total Expense Analysis N’million 2019FY 2020FY VAR % VAR Total Expenses: 2019FY Total Expenses: 2020FY Total Expenses 81,992 83,633 1,641 2.0% Others Exp., 40% Staff Cost, 29% Others Exp., 36% Staff Cost, 30% Staff Cost 24,129 25,367 1,238 5.1% Depreciation 5,421 6,207 786 14.5% NDIC/AMCON Cost 15,2
Slide 21: 4. Financial Review - SFP
4. Financial Review - SFP v v 821 www.fidelitybank.ng 3 8
Slide 22: Funding Base Analysis
Funding Base Analysis N’million 2019FY 2020FY VAR % VAR Funding Structure: 2019FY Funding Structure: 2020FY Demand Deposits 691,610 883,300 191,690 27.7% Equity, 12% Debt, 6% Debt, 9% Equity, 11% Savings Deposits 275,219 424,384 149,165 54.2% Tenor Deposits 258,384 391,342 132,958 51.5% Demand, 35%
Slide 23: Deposits Analysis
Deposits Analysis Total customer deposits increased by 38.7% to N1,699.0bn Total Deposits from N1,225.2bn in 2019FY. N’billion While actual growth was 36.5%, the impact of FX rate 23.6% 23.7% 21.4% 21.2% 17.5% adjustment accounted for only 2.2% growth in deposits. 1,699.0 1,405.9 1,498.4 1,352.3
Slide 24: Retail Banking Analysis (Personal Banking)
Retail Banking Analysis (Personal Banking) Savings deposits grew by 54.2% and now represent 25.0% Savings Deposits Trend of total deposits from 22.5% in 2019FY. N’billion 22.5% 23.1% 25.9% 25.7% 25.0% Savings deposits accounted for 32.1% of the growth in 424.4 local currency deposits in 2020FY.
Slide 25: Liquid Assets Position
Liquid Assets Position Short-term Funds Placements Treasury Bills Bonds 29.6% 1.9% 9.6% 6.8% 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% 68.2% 35.0% 35.0% 66.0% 65.9% 64.5% 61.4% 31.6% 32.1% 30.0% 30.0
Slide 26: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers: 2019FY Vs. 2020FY N’million 2019FY 2020FY VAR % VAR Communication 32,416 32,217 (199) -0.6% Oil and Gas 244,799 315,155 70,356 28.7% - Upstream 132,860 157,939 25,079 18.9% - Downstream 52,203 71,448 19,245 36.9% - Services 59,735 8
Slide 27: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers Loan Analysis – 2020FY N’million Q1 2020 H1 2020 9M 2020 2020FY Construction, Agriculture, Others, 6.0% 3.2% 3.3% Communication 30,121 31,521 30,548 32,217 Communication, Oil & Gas: 2.3% Oil and Gas 281,720 309,576 324,884 315,155 Se
Slide 28: Loan Book Analysis
Loan Book Analysis Net loans & advances increased by 17.7% to N1,326.1bn, Net Loans and Advances to Customers with 85.9% of the loan book in term loans. N'billion Actual real loan growth was 13.3% while the adjustment in - 1,272.5 1,326.1 1,165.8 1,209.1 1,127.0 49.5 exchange rate from N364.7/$
Slide 29: Impairment Analysis
Impairment Analysis 2020FY Impairment Charge Impairment Charge: 2019FY Vs. 2020FY ( 13,029 ) 352 - ( 16,858 ) (16,858) 2020FY 2,972% ( 2,059 ) ( 2,122 ) 2019FY 587 Stage 1 Stage 2 Stage 3 Other Other Total Assets Losses 2019FY Impairment Charge Total Impairment 2019FY 2020FY VAR % VAR (2,686) (4,705
Slide 30: 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 18,284 12,000 1,932 32,217 56.8% 37.2% 6.0% 2.3% Oil and Gas 235,270 75,416 4,469 315,155 74.7% 23.9% 1.4% 22.6% - Upstream 87,514 70,426 0
Slide 31: Loan Book Breakdown – Stage 1|2|3
Loan Book Breakdown – Stage 1|2|3 YoY Change In Loan Book Stages: 2019FY Vs. 2020FY N’million Stage 1 Stage 2 Stage 3 Total Communication (1,294) 361 734 (199) Oil and Gas 103,721 (22,498) (10,867) 70,356 - Upstream 14,118 11,136 (175) 25,079 - Downstream 36,480 (7,171) (10,065) 19,245 - Services 53
Slide 32: NPL Analysis
NPL Analysis NPL ratio (Stage 3 Loans) increased to 3.8% from 3.3% in Gross Loans and Advances 2019FY due to 37.3% increase in absolute NPL book to N'billion N53.1bn. 1,334.6 1,393.6 1,267.3 YoY NPL growth is partly due to our conservative stress test 1,178.4 1,218.9 53.1 61.3 63.1 38.6 58.1 on
Slide 33: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans: 2019FY Vs. 2020FY 2019FY 2020FY VAR % VAR 2019FY 2020FY N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,198 1,932 734 61.3% 3.7% 6.0% Oil and gas 15,336 4,469 (10,867) -70.9% 6.3% 1.4% - Oil & Gas Upstream 175 - (175) -100
Slide 34: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – 2020FY N’million Q1 2020 H1 2020 9M 2020 2020FY Communication, 3.6% Power, 0.0% Oil & Gas: Upstream, 0.0% Communication 3,291 4,014 2,982 1,932 Others, 30.4% Manufacturing, Oil and Gas 16,161 19,309 19,852 4,469 6.2% - Upstream
Slide 35: Capital Adequacy Ratio
Capital Adequacy Ratio Fidelity CAR is well above the regulatory minimum Capital Adequacy Ratio Computation – Basel II requirement at 18.2% in 2020FY. N‘billion 2019FY 2020FY VAR Excluding the regulatory adjustment, CAR would have come in at 19.7%. Tier 1 Capital 191.7 224.3 32.5 Regulatory Adju
Slide 36: 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: 12.9% Banking Treasury Conglomerates 34.1
Slide 37: 5. 2020FY Actual Vs. 2021FY Guidance
5. 2020FY Actual Vs. 2021FY Guidance 37 www.fidelitybank.ng 3
Slide 38: 2020FY Actual Vs. 2021FY Guidance
2020FY Actual Vs. 2021FY Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N Index 2020FY Actual 2020FY Target Comment 2021FY Target 1 PBT N28.0bn N25.8bn Achieved N35.2bn 2 Loan Growth 17.7% 5.0% - 7.5% Achieved 10.0% - 15.0% 3 Deposit Growth 38.7% 5.0% - 10.0% Achieved 15.0% - 20.0% 4 Net Interest
Slide 39: 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