Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Unaudited Financial Results for the 9 months ended September 30, 2015 www.fidelitybank.ng
Slide 2: Outline
Outline 1 The Operating Environment 2 Overview of Fidelity Bank 3 Financial Highlights 4 Financial Review 5 2015 Guidance 2 www.fidelitybank.ng
Slide 3: Recent Events & Policy Changes
Recent Events & Policy Changes JP Morgan has excluded Nigeria from its local-currency emerging-market bond indexes, citing liquidity concerns due to restrictions on foreign exchange transactions. The partial removal cuts the weight of Nigerian Bonds to 0.79%, while that of Brazil and South Afric
Slide 4: Economic Stimulus to Drive Growth
Economic Stimulus to Drive Growth Senate confirms all 36 ministerial nominees, bringing an end to over 3 weeks of ministerial screening. With the Senate confirmation concluded, the President can now constitute a cabinet to chat the way forward for the economy. The Presidency plans setting up $
Slide 5: Outline
Outline 1 The Operating Environment 2 Overview of Fidelity Bank 3 Financial Highlights 4 Financial Review 5 2015 Guidance 5 www.fidelitybank.ng
Slide 6: Overview of Fidelity Bank
Overview of Fidelity Bank Background Key Highlight A full service bank with International Authorisation established in 1987 and licensed by the Central Total Assets N1,159.2 billion Bank of Nigeria The Bank currently has over 400,000 shareholders with the majority being Nigerian citizens and Tot
Slide 7: Outline
Outline 1 The Operating Environment 2 Overview of Fidelity Bank 3 Financial Highlights 4 Financial Review 5 2015 Guidance 7 www.fidelitybank.ng
Slide 8: Performance Highlights
Performance Highlights Total Interest Income up by 10.2% to N84.7 billion in 9M 2015 (9M 2014: N76.8 billion) Revenue Net Fee Income up by 7.7% to N21.4 billion in 9M 2015 (9M 2014: N19.9 billion) and Net Interest Margin at 6.9% in 9M 2015 (H1 2015: 6.6%; Q1 2015: 6.2%; 2014FY: 6.0%) Efficienc
Slide 9: Financial Highlights
Financial Highlights Summary of Income Statement: 9M 2015 Vs 9M 2014 N’million 9M 2015 9M 2014 VAR % VAR Gross Earnings 106,570 96,023 10,547 11.0% Interest Income Loans 58,836 51,614 7,222 14.0% Interest Income Liquid Assets 25,854 25,204 650 2.6% Total Interest Income 84,690 76,818 7,872 10.2% Int
Slide 10: Financial Highlights
Financial Highlights Summary of Income Statement: Q-o-Q Change N’million Q3 2015 Q2 2015 Q1 2015 VAR % VAR Gross Earnings 35,765 36,518 34,288 (753) -2.1% Interest Income Loans 20,870 19,396 18,570 1,474 7.6% Interest Income Liquid Assets 7,794 9,512 8,548 (1,718) -18.1% Total Interest Income 28,664
Slide 11: Financial Highlights
Financial Highlights Statement of Financial Position: 9M 2015 Vs 2014 FY N’million 9M 2015 2014 FY VAR % VAR Total Assets 1,159,184 1,187,025 (27,841) -2.3% Earning Assets 789,058 818,993 (29,935) -3.7% Bank Placements 11,500 42,049 (30,549) -72.7% Treasury Bills 173,719 184,342 (10,623) -5.8% Bonds
Slide 12: Financial Highlights
Financial Highlights Statement of Financial Position: Q-o-Q Change N’million Q3 2015 Q2 2015 Q1 2015 2014 FY VAR % VAR Total Assets 1,159,184 1,192,684 1,196,228 1,187,025 (33,500) -2.8% Earning Assets 789,058 825,327 804,752 818,993 (36,270) -4.4% Bank Placements 11,500 4,000 2,000 42,049 7,500 187
Slide 13: Outline
Outline 1 The Operating Environment 2 Overview of Fidelity Bank 3 Financial Highlights 4 Financial Review 5 2015 Guidance 13 www.fidelitybank.ng
Slide 14: Total Earnings Analysis
Total Earnings Analysis Key Highlights (N’million) 9M 2015 9M 2014 VAR Total Earnings: 9M 2015 Total Earnings: 9M 2014 Total Earnings 107,637 96,023 11,613 E-banking, 4% E-banking, 2% Others, 10% Others, 5% COT, 3% Interest Income Loans 58,836 51,614 7,222 COT, 1% Interest Income Liquid Assets 25,85
Slide 15: Net Interest Margin Analysis
Net Interest Margin Analysis NIM has grown steadily from 6.0% in 2014FY to 6.9% in NIM Trend Q3 2015 due to a 1.1% growth in the yield on earning assets and a 0.3% decline in funding costs 6.9% The increase in the yield on earning assets was driven 6.6% by repricing of the loan book and the grow
Slide 16: E-Banking Income Analysis
E-Banking Income Analysis Disciplined implementation of our retail strategy using Quarterly Revenue Trend technology as an enabler has continued to translate N'million to improved earnings with income from e-banking 2,489 increasing by 128.4% y-o-y. Compared to Q2 2015, profit was up by 115.4% a
Slide 17: Expense Analysis
Expense Analysis Key Highlight (N’million) 9M 2015 9M 2014 VAR Total Expenses: 9M 2015 Total Expenses: 9M 2014 Total Expenses 44,756 40,577 4,179 Others Exp., 30% Others Exp., 27% Staff Cost 19,257 18,380 878 Depreciation 2,947 2,853 94 Power, Power, Regulatory Cost 7,039 6,578 461 2% 2% Technology
Slide 18: Cost Dynamics
Cost Dynamics Total expenses increased by 10.3% y-o-y (6.3% q-o-q), Operating Expenses & Staff Cost N'billion % Share with staff cost, branding & advertisement, and 44.8 regulatory charges contributing most to the cost line. 45 100% Cost to income ratio improved y-o-y to 71.6% (9M 40.6 75% 41 20
Slide 19: Funding Structure
Funding Structure Key Highlights (N’m) 9M 2015 2014FY VAR Funding Structure: 9M 2015 Funding Structure: 2014FY Demand Deposits 400,648 424,397 (23,749) Debt Securities, Equity, 17% Debt Securities, Equity, 16% 8% 5% Savings Deposits 105,925 97,996 7,929 Time Deposits 259,213 297,641 (38,428) Demand,
Slide 20: Deposits Analysis
Deposits Analysis Customer Deposits Total deposits declined by 6.6% YTD to N765.8 billion N'billion and 3.9% q-o-q due to regulatory initiatives e.g. Treasury Single Account (TSA) which impacted our 820.0 deposit base by about N75bn. 796.6 787.5 Low cost deposits constitute about 66.2% of total
Slide 21: Retail Banking Analysis (Personal Banking)
Retail Banking Analysis (Personal Banking) Savings Deposits Trend Savings deposit grew by 8.1% YTD while it increased N'billion marginally by 0.7% q-o-q. 105.6 105.2 105.9 We expect the disbursement of the salary bailout 98.0 86.3 funds to increase consumer disposable income which should impact
Slide 22: Liquidity Assets Position
Liquidity Assets Position Short-term Funds Placements Treasury Bills Bonds 23.9% 1.0% 15.0% 4.8% As a % of Total Assets As a % of Total Assets As a % of Total Assets As a % of Total Assets Liquidity Ratio % Net Loans to Customer Deposits 38.0% 71.9% 71.5% 32.6% 32.2% 33.4% 68.6% 66.1% 30.0% 30.0% 30
Slide 23: Portfolio Analysis
Portfolio Analysis Breakdown of Loans & Advances to Customers: 9M 2015 Vs 2014 FY N’million 9M 2015 2014 FY VAR % VAR Communication 53,330 76,480 (23,150) -30.3% Oil and gas 151,671 134,750 16,921 12.6% Power 59,098 57,626 1,472 2.6% Manufacturing 64,336 51,323 13,013 25.4% General Commerce 39,372 4
Slide 24: Portfolio Analysis
Portfolio Analysis Breakdown of Loans & Advances to Customers Loan Analysis – Q3 2015 Real Estate, Others, 7.8% N’million Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Agriculture, 2.8% 2.1% Communication, Communication 53,330 72,887 73,200 76,480 86,204 Construction, 9.4% 2.9% Oil and gas 151,671 150,527
Slide 25: Loan Book Analysis
Loan Book Analysis Net loans increased by 1.1% YTD to N547.7 billion but declined by 4.4% q-o-q driven by customer pay- Net Loans and Advances to Customers downs and cautious approach to asset creation in N'billion line with the weaker macro environment. 572.8 Q-o-Q drop was driven by communicat
Slide 26: Portfolio Analysis
Portfolio Analysis Breakdown of Non-performing Loans: 9M 2015 Vs 2014 FY 9M 2015 2014 FY N’million % Contr. % NPL N’million % Contr. % NPL Communication 4,168 19.9% 7.8% 3,628 14.9% 4.7% Oil and gas 1,256 6.0% 0.8% 605 2.5% 0.4% Power 0 0.0% 0.0% 0 0.0% 0.0% Manufacturing 7,142 34.1% 11.1% 7,393 30.
Slide 27: Portfolio Analysis
Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – Q3 2015 Real Estate, 1.6% Others, 9.9% N’million Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Agriculture Communication, , 3.2% 19.9% Communication 4,168 3,405 3,431 3,628 4,458 Construction, 0.7% Oil and gas, 6.0% Oil and gas 1,256 1,02
Slide 28: NPL Analysis
NPL Analysis NPL remained unchanged at 3.7% in Q3 2015, Gross Loans and Advances however absolute NPL dropped by 3.2% q-o-q (16.2% N'billion y-o-y) due to increased pay-down and improved 593.4 collections. The major sectors driving the decline in absolute NPL 569.1 564.7 is General Commerce due
Slide 29: Capital Adequacy
Capital Adequacy Capital Adequacy Ratio Fidelity remains well capitalized with strong capital N'billion % Ratio adequacy ratio (CAR) of 20.6% compared to the 184 180.3 50% regulatory minimum requirement of 15.0%. 178.6 178.1 Total equity increased by 4.2% YTD (1.0% q-o-q) to 173.1 172 20.6% 25%
Slide 30: Business Segment Analysis
Business Segment Analysis Business Description Handles the bank’s institutional clients with turnover in excess of ₦10.0bn. Revenue Deposits Loans Corporate & Investment Key focus sectors include: 19.6% Oil & gas upstream Oil & gas downstream 39.2% Banking Power & infrastructure Telecomm
Slide 31: Business Segment Analysis
Business Segment Analysis Corporate Banking Lagos & SW North South Revenue 39.2% 23.7% 19.5% 17.5% Corporate Banking Lagos & SW North South Deposits 19.6% 29.4% 29.4% 21.5% Corporate Banking Lagos & SW North South Loans 70.4% 10.4% 7.3% 11.9% 31 www.fidelitybank.ng
Slide 32: Outline
Outline 1 The Operating Environment 2 Overview of Fidelity Bank 3 Financial Highlights 4 Financial Review 5 2015 Guidance 32 www.fidelitybank.ng
Slide 33: 2015 Guidance
2015 Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N INDEX 2014 Actual 9M 2015 Actual 2015 TARGET COMMENT 1 Net Interest Margin 6.0% 6.9% 7% On Track 2 Tax Rate 11.1% 17.0% 15% to 20% Revised 3 Loan Growth 27.1% 1.1% 10% Behind Target 4 Deposit Growth 1.7% -6.6% Decline (10% to 15%) Revised 5 Cos
Slide 34: www.fidelitybank.ng
www. fidelitybank.ng VW Fidelity #NewFaceOfService 34
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