Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — 9M 2018 Earnings Presentation
33 slides from Fidelity Bank's earnings presentation, Sep 30, 2018
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Unaudited Financial Results for the 9 months ended September 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. 9M 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: N1,681bn Issued And 28.96bn Fully Paid $5.0bn 7yr N30bn May 2022 NGN Bonds $400m Oct 2022 Eurobond Professional Staff 2,920 800 ATMs Male: 56% Operations 4.4 Million Female: 44% & Accounts 2m Cards Co
Slide 5: Retail and Digital Banking Evolution / Progress Report
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) 201.7 66.0 4.4 3.9 178.6 57.2 3.6 155.0 52.8 3.3 2.8 44.8 119.1 98.0 36.5 2014 2015 2016 2017 9M 2018 2014 2015 2016 2017 9M 2018 2014
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 Sep 2018 improving Improving Foreign Political risk impacts Reserves on the Capital & Money Market Improving yields as 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 9.1% to N120.4 billion in 9M 2018 (9M 2017: N110.4 billion) Revenue Operating Expenses up by 6.5% to N50.6 billion in 9M 2018 (9M 2017: N47.5 billion) and Cost to Income Ratio inched up to 68.4% in 9M 2018 from 66.8% in 9M 2017 Efficiency Rati
Slide 10: Financial Highlights
Financial Highlights PBT increased by 23.6% YoY to N20.1 billion from N16.2 billion in 9M 2017 due to double digit revenue growth of 10.8% (N6.9 billion) and moderate increase in total expenses by 6.5% (N3.1 billion). Growth in operating expenses was driven by increased technology cost, deprecia
Slide 11: Financial Highlights: Income Statement YoY
Financial Highlights Summary of Income Statement: YoY Change N’million 9M 2017 9M 2018 VAR % VAR Gross Earnings 130,086 139,001 8,916 6.9% Interest Income Loans 82,199 88,328 6,129 7.5% Interest Income Liquid Assets 28,168 32,071 3,902 13.9% Total Interest Income 110,368 120,399 10,031 9.1% Interest
Slide 12: Financial Highlights: Income Statement QoQ
Financial Highlights Summary of Income Statement: QoQ Change N’million Q1 2018 Q2 2018 Q3 2018 VAR % VAR Gross Earnings 43,680 48,615 46,706 (1,909) -3.9% Interest Income Loans 28,345 29,510 30,473 963 3.3% Interest Income Liquid Assets 10,121 12,071 9,879 (2,192) -18.2% Total Interest Income 38,466
Slide 13: Financial Highlights: Statement of Financial Position
Financial Highlights Statement of Financial Position: YTD Change N’million 2017FY 9M 2018 VAR % VAR Total Assets 1,379,214 1,680,804 301,590 21.9% Earning Assets 977,076 1,166,046 188,970 19.3% Bank Placements 8,475 89,867 81,392 960.4% Treasury Bills 90,223 152,230 62,007 68.7% Bonds 109,641 93,573
Slide 14: Gross Earnings Analysis
Gross Earnings Analysis Key Highlights (N’m) 9M 2017 9M 2018 VAR % VAR Total Earnings: 9M 2017 Total Earnings: 9M 2018 Total Earnings 130,086 139,001 8,916 6.9% Maint. Fee, 1% Trade, 1% Maint. Fee, 2% Trade, 1% Interest Income Loans 82,199 88,328 6,129 7.5% E-banking, 4% Others, 4% E-banking, 4% Oth
Slide 15: Net Interest Margin Analysis
Net Interest Margin Analysis NIM dropped to 6.7% from 7.3% in 2017FY as the decline in NIM Trend our average yield on earning assets outpaced the improved funding cost in 9M 2018. 7.4% 7.3% 7.1% 6.7% 6.7% Average funding costs dropped to 6.2% on account of improved deposit pricing as average cos
Slide 16: Total Expense Analysis
Total Expense Analysis Key Highlights (N’m) 9M 2017 9M 2018 VAR % VAR Total Expenses: 9M 2017 Total Expenses: 9M 2018 Total Expenses 47,486 50,555 3,069 6.5% Others Exp., 36% Staff Cost, 36% Others Exp., 34% Staff Cost, 33% Staff Cost 17,139 16,747 -392 -2.3% Depreciation 2,696 3,632 936 34.7% NDIC/
Slide 17: Cost Dynamics – YoY Breakdown
Cost Dynamics – YoY Breakdown Breakdown of Operating Expenses: 2017 AVG. Vs. 9M 2017 Vs. 9M 2018 N’million 2017 AVG. 9M 2017 9M 2018 VAR % VAR Branding & Advert 6,130 6,572 5,581 (990) -15.1% Staff Cost 18,401 17,139 16,747 (392) -2.3% Other expenses 1,384 1,126 743 (383) -34.0% Directors' emolument
Slide 18: 4. Financial Review - SFP
4. Financial Review - SFP 18 www.fidelitybank.ng 3
Slide 19: Funding Base Analysis
Funding Base Analysis Key Highlights (N’m) 2017FY 9M 2018 VAR % VAR Funding Structure: 2017FY Funding Structure: 9M 2018 Demand Deposits 418,472 525,003 106,531 25.5% Equity, 16% Debt, 10% Equity, 12% Debt, 14% Savings Deposits 178,570 201,661 23,091 12.9% Tenor Deposits 178,234 260,166 81,932 46.0%
Slide 20: Deposits Analysis
Deposits Analysis Total deposits increased by 27.3% YTD (27.4% QoQ) to Customer Deposits N986.8 billion from N775.3 billion in 2017FY. N'billion 986.8 Double digit growth across ALL deposit products (Demand 927.9 859.4 107.4 | Savings | Tenor), and we have already achieved our 774.4 775.3 113.4
Slide 21: Retail Banking Analysis (Personal Banking)
Retail Banking Analysis (Personal Banking) Savings deposits grew by 12.9% YTD which contributed to Savings Deposits Trend the decline in our funding cost. N'billion 21.2% 23.0% 21.9% 21.3% 20.4% Growth was as a result of the disciplined execution of our retail banking strategy and improved cross
Slide 22: Liquid Assets Position
Liquid Assets Position Short-term Funds Placements Treasury Bills Bonds 25.3% 5.3% 9.1% 5.6% 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 38.3% 82.8% 84.7% 35.9% 36.0% 72.3% 34.4% 71.0% 70.3% 33.2% 30.0
Slide 23: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers: 2017FY Vs. 9M 2018 N’million 2017FY 9M 2018 VAR % VAR Communication 37,874 36,685 -1,189 - 3.1% Oil and Gas 204,695 219,935 15,240 7.4% - Upstream 148,544 138,524 -10,020 - 6.7% - Downstream 27,362 32,919 5,556 20.3% - Services 28,7
Slide 24: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers Loan Analysis – 9M 2018 Construction, Agriculture, Others, 5.3% N’million Q4 2017 Q1 2018 Q2 2018 Q3 2018 3.5% 1.8% Communication, Communication 37,874 43,562 40,614 36,685 Oil & Gas: 4.1% Service, 5.5% Oil and Gas 204,695 198,068 19
Slide 25: Loan Book Analysis
Loan Book Analysis Net loans increased by 8.0% YTD (4.4% QoQ) to N830.4 Net Loans and Advances to Customers billion, with LCY loans growth at 15.0% YTD compared to a N'billion relatively stable FCY loan growth. 795.4 830.4 753.8 768.7 738.7 Absolute loan growth was driven by 4 sectors: Oil & Gas
Slide 26: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans: 2017FY Vs. 9M 2018 2017FY 9M 2018 VAR % VAR 2017FY 9M 2018 N'million N'million N'million NPL Ratio NPL Ratio Communication 1,537 1,597 60 3.9% 4.1% 4.4% Oil and gas 13,624 13,299 (325) -2.4% 6.7% 6.0% - Oil & Gas Upstream - - - 0.0% 0.0% 0.0%
Slide 27: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – 9M 2018 N’million Q4 2017 Q1 2018 Q2 2018 Q3 2018 Others, 11.3% Communication, Power, 0.0% 3.0% Communication 1,537 1,557 1,609 1,597 Construction, Oil & Gas: 0.7% Upstream, 0.0% Oil and Gas 13,624 12,891 13,148 13,299 Oil & Gas
Slide 28: NPL Analysis
NPL Analysis NPL ratio declined to 6.0% from 6.4% in 2017FY principally Gross Loans and Advances due to the 11.6% YTD increase in gross loan book. N'billion 852.1 830.4 Absolute NPLs increased by 5.5% due to N1.9 billion 785.4 795.3 794.3 53.5 51.7 46.5 50.7 50.3 increase in the transport and N1
Slide 29: Capital Adequacy
Capital Adequacy CAR improved to 17.0% from 16.0% in 2017FY as Capital Adequacy Ratio Computation – Basel II capitalized H1 profit increased Tier 1 Capital by N10 billion. N‘billion 2017FY 9M 2018 VAR Credit risk dropped by N47.9 billon to N821.4 billion due to increased collaterals on risk asse
Slide 30: 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 11.9% Banking 38.5% Power
Slide 31: 5. 9M 2018 Vs. 2018FY Guidance
5. 9M 2018 Vs. 2018FY Guidance 42 www.fidelitybank.ng 3 31
Slide 32: 9M 2018 Vs. 2018FY Guidance
9M 2018 Vs. 2018FY Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N Index 9M 2018 Actual 2018FY Target Comment 1 Net Interest Margin 6.7% 6.5% - 7.0% On Track 2 Tax Rate 11.0% 10.0% - 12.0% On Track 3 Loan Growth (YTD) 8.0% 7.5% - 10.0% On Track 4 Deposit Growth (YTD) 27.3% 10.0% - 15.0% On Track
Slide 33: 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