Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — Q1 2020 Earnings Presentation
35 slides from Fidelity Bank's earnings presentation, Mar 31, 2020
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Unaudited Financial Results for the 3 months ended March 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. Q1 2020 Actual Vs. 2020FY Guidance 2 www.fidelitybank.ng
Slide 3: Overview of Fidelity Bank
1. 4. Overview FinancialofReview Fidelity- Bank SFP 36 www.fidelitybank.ng 6 6
Slide 4: Overview of Fidelity Bank
Overview of Fidelity Bank Ownership 32.0bn Authorized Shares Listings: 28.96bn Shares Total Assets: N2,247bn Issued And 28.96bn Fully Paid $5.8bn 7yr N30bn May 2022 NGN Bonds $400m Oct 2022 Eurobond Professional Staff 2,823 833 ATMs Male: 54% Operations 5.3 Million Female: 46% & Accounts 2.2m Cards
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) 5.3 312.1 57.2 5.3 53.8 275.2 50.4 4.5 44.8 3.9 228.0 3.6 37.6 178.6 155.0 2016 2017 2018 2019 Q1 2020 2016 2017 2018 2019 Q1 2020 2016
Slide 6: The Operating Environment
2. The Operating Environment 6 www.fidelitybank.ng 3
Slide 7: The Operating Environment
The Operating Environment FG slashes 2020 budget by Moderate growth in credit N317.5bn to N10.28trn due to to the Private Sector due declining oil price. to rising risk Declining foreign reserves as oil prices Political risk is hit new low significantly reduced Yields are ticking up amid Naira is st
Slide 8: Financial Highlights
3. Financial Highlights v v 88 www.fidelitybank.ng 3 8
Slide 9: Performance Highlights
Performance Highlights Total Interest Income up by 11.4% to N43.9 billion in Q1 2020 (Q1 2019: N39.4 billion) Revenue Operating Expenses up by 29.6% to N21.6 billion in Q1 2020 (Q1 2019: N16.7 billion) and Cost to Income Ratio dropped to 71.3% in Q1 2020 from 73.4% in 2019FY Efficiency Ratio
Slide 10: Financial Highlights
Financial Highlights Total operating income increased by 24.2% to N30.3bn from N24.4bn in Q1 2019, however, PBT dropped by 1.4% YoY to N6.6bn due to 103.3% rise in loan loss provisions and 29.6% increase in total operating expenses. Growth in operating expenses was driven by the following cost l
Slide 11: Financial Highlights: Income Statement YoY Change
Financial Highlights Summary of Income Statement: YoY Change N’million Q1 2019 Q1 2020 VAR % VAR Gross Earnings 48,423 51,159 2,736 5.7% Interest Income Loans 28,400 32,340 3,940 13.9% Interest Income Liquid Assets 11,030 11,586 555 5.0% Total Interest Income 39,430 43,926 4,496 11.4% Interest Expen
Slide 12: Financial Highlights: Income Statement QoQ Change
Financial Highlights Summary of Income Statement: QoQ Change N’million Q2 2019 Q3 2019 Q4 2019 Q1 2020 VAR % VAR Gross Earnings 55,232 57,400 54,460 51,159 (3,301) -6.1% Interest Income Loans 33,685 36,475 38,147 32,340 (5,807) -15.2% Interest Income Liquid Assets 12,715 12,811 9,081 11,586 2,505 27
Slide 13: Financial Highlights: Statement of Financial Position
Financial Highlights Statement of Financial Position: YTD Change N’million 2019FY Q1 2020 VAR % VAR Total Assets 2,114,037 2,246,788 132,751 6.3% Earning Assets 1,474,252 1,522,752 48,500 3.3% Bank Placements 55,812 57,133 1,321 2.4% Treasury Bills 183,363 210,342 26,979 14.7% Bonds 108,103 89,450 (
Slide 14: Gross Earnings Analysis
Gross Earnings Analysis N’million Q1 2019 Q1 2020 VAR % VAR Total Earnings: Q1 2019 Total Earnings: Q1 2020 Maint. Fee, 2% Trade, 1% Maint. Fee, 1% Trade, 1% Total Earnings 48,423 51,159 2,736 5.7% Digital, 4% Digital, 3% Others, 5% Others, 5% Interest Income Loans 28,400 32,340 3,940 13.9% FX Incom
Slide 15: Net Interest Margin Analysis
Net Interest Margin Analysis NIM improved to 6.6% from 6.2% in 2019FY, as the drop in NIM Trend average funding cost surpassed the moderation in average yields on earning assets. 6.6% 6.0% 6.2% Average funding cost dropped to 4.4% from 6.3% in 2019FY 5.4% 5.8% due to a combination of lower avera
Slide 16: Total Expense Analysis
Total Expense Analysis N’million Q1 2019 Q1 2020 VAR % VAR Total Expenses: Q1 2019 Total Expenses: Q1 2020 Total Expenses 16,692 21,628 4,936 29.6% Others Exp., Staff Cost, Others Exp., Staff Cost, 36% 32% 38% 30% Staff Cost 5,347 6,398 1,051 19.7% Depreciation 993 1,415 422 42.5% NDIC/AMCON Cost 3,
Slide 17: Financial Review - SFP
4. Financial Review - SFP www.fidelitybank.ng 6 6 17 6
Slide 18: Funding Base Analysis
Funding Base Analysis N’million 2019FY Q1 2020 VAR % VAR Funding Structure: 2019FY Funding Structure: Q1 2020 Demand Deposits 691,610 734,787 43,177 6.2% Debt, 9% Equity, 12% Debt, 9% Equity, 12% Savings Deposits 275,219 312,109 36,890 13.4% Tenor Deposits 258,384 305,366 46,982 18.2% Other Borrowin
Slide 19: Deposits Analysis
Deposits Analysis Total customer deposits increased by 10.4% to N1,352.3bn Total Deposits from N1,225.2bn in 2019FY. N’billion However, actual growth was 8.9% while the impact of FX 19.2% 19.6% 23.6% 23.6% 23.7% rate adjustment accounted for 1.5% growth in deposits. 1,352.3 1,225.2 1,017.0 1,097
Slide 20: Retail Banking Analysis (Personal Banking)
Retail Banking Analysis (Personal Banking) Savings deposits grew by 13.4% YTD and now represent Savings Deposits Trend 23.1% of total deposits from 22.5% in 2019FY. N’billion 23.8% 22.6% 22.3% 22.5% 23.1% Growth was as a result of the disciplined execution of our retail banking strategy and impr
Slide 21: Liquid Assets Position
Liquid Assets Position Short-term Funds Placements Treasury Bills Bonds 28.6% 2.5% 9.4% 4.0% 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 37.2% 67.5% 68.4% 68.2% 34.8% 35.0% 65.8% 66.0% 32.6% 31.6% 30.0% 30.0
Slide 22: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers: 2019FY Vs. Q1 2020 N’million 2019FY Q1 2020 VAR % VAR Communication 32,416 30,121 (2,295) - 7.1% Oil and Gas 244,799 281,720 36,921 15.1% - Upstream 132,860 139,742 6,882 5.2% - Downstream 52,203 68,551 16,348 31.3% - Services 59,73
Slide 23: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers by Currency N’million FCY LCY Total % FCY % LCY Communication 1,560 28,561 30,121 5.2% 94.8% Oil and Gas 217,909 63,811 281,720 77.3% 22.7% - Upstream 139,395 347 139,742 99.8% 0.2% - Downstream 19,550 49,001 68,551 28.5% 71.5% - Ser
Slide 24: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers Loan Analysis – Q1 2020 Construction, Agriculture, Others, 5.4% N’million Q2 2019 Q3 2019 Q4 2019 Q1 2020 3.0% 2.9% Communication 25,426 29,203 32,416 30,121 Communication, Oil & Gas: 2.5% Oil and Gas 227,370 254,790 244,799 281,720
Slide 25: Loan Book Analysis
Loan Book Analysis Net loans & advances increased by 3.4% YTD to Net Loans and Advances to Customers N1,165.8bn, with 85.3% of the loan book in term loans. N’billion 58.1% 60.9% 56.4% 58.8% 57.0% The adjustment of the exchange rate from N364.7 to N386.5 1,127.0 1,165.8 accounted for over 70% of
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 Communication 12,989 13,841 3,291 30,121 Oil and Gas 176,410 89,148 16,161 281,720 - Upstream 95,477 43,918 347 139,742 - Downstream 36,607 16,643 15,301 68,551 - Services 44,326 28,5
Slide 27: NPL Analysis
NPL Analysis NPL ratio (Stage 3 Loans) increased to 4.8% in Q1 2020 from Gross Loans and Advances 3.3% in 2019FY due to 50.4% increase in absolute NPL book N'billion to N58.1bn. 1,178.4 1,218.9 1,126.5 1,024.2 1,050.2 38.6 58.1 NPL growth is primarily due to the early identification of 53.9 50.5
Slide 28: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans: 2019FY Vs. Q1 2020 2019FY Q1 2020 VAR % VAR 2019FY Q1 2020 N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,198 3,291 2,092 174.6% 3.7% 10.9% Oil and gas 15,336 16,161 825 5.4% 6.3% 5.7% - Oil & Gas Upstream 175 347 172 98.
Slide 29: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans by Currency N’million FCY LCY Total % FCY % LCY Communication 0 3,291 3,291 0.0% 100.0% Oil and Gas 0 16,161 16,161 0.0% 100.0% - Upstream 0 347 347 0.0% 100.0% - Downstream 0 15,301 15,301 0.0% 100.0% - Services 0 514 514 0.0% 100.0% Power 0
Slide 30: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – Q1 2020 N’million H1 2019 9M 2019 2019FY Q1 2020 Construction, Others, 10.0% Communication, 5.7% 1.5% Communication 1,722 2,417 1,198 3,291 Power, 0.0% Oil and Gas 16,859 15,621 15,336 16,161 Oil & Gas: Oil & Gas: - Upstream Ser
Slide 31: Capital Adequacy
Capital Adequacy Fidelity CAR is currently at 17.7% which is well above the Capital Adequacy Ratio Computation – Basel II regulatory minimum requirement of 15.0%. N‘billion 2019FY Q1 2020 VAR Regulatory adjustment increased to N15.4bn largely due to the currency adjustments. Excluding the regula
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: 31.1% 13.6% Banking Treasury Conglomerate
Slide 33: Q1 2020 Actual Vs. 2020FY Guidance
5. Q1 2020 Actual Vs. 2020FY Guidance 33 www.fidelitybank.ng 3
Slide 34: Q1 2020 Actual Vs. 2020FY Guidance
Q1 2020 Actual Vs. 2020FY Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N Index Q1 2020 Actual 2020FY Target Comment 1 Net Interest Margin 6.6% 5.5% - 6.0% On Track 2 Tax Rate 11.0% 10.0% – 15.0% On Track 3 Loan Growth (YTD) 3.4% 5.0% - 7.5% On Track 4 Deposit Growth (YTD) 10.4% 5.0% - 10.0% On T
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