Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — FY2023 Earnings Presentation
34 slides from Fidelity Bank's earnings presentation, 2024
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Audited Financial Results for the 12 months ended December 31, 2023 Fidelity Bank information meant for public use
Slide 2: Disclaimer
Disclaimer Please read the following before continuing: This presentation is based on Fidelity Bank Plc (‘Fidelity’ or ‘the Bank’) audited financial statements for the period ended 31 December 2023. Aside the extracts from the published financial statements, Fidelity has obtained some information fr
Slide 3: Content
Content Section Page 1. Overview of Fidelity Bank 5 2. Operating Environment 13 3. Financial Review 16 4. 2024FY Guidance 33 3 Fidelity Bank information meant for public use
Slide 4: Overview of Fidelity Bank
Fidelity Bank information meant for public use
Slide 5: Fidelity Bank at a glance
Overview Operating Environment Financial Review Guidance Business Segment > 251 Business Offices 13.4% Locations: > 8.3m+Customer Accounts Revenue 17.9% 68.7% Nigeria United Kingdom > 3,063Professional Staff 8.6% > 159 Call Centre Agents PBT 12.4% 79.0% > 21k Banking Agents Rt/Comm/PS Corporate Invt
Slide 6: Robust risk management is at the core of Fidelity Bank operations
Overview Operating Environment Financial Review Guidance Robust risk management is at the core of Fidelity Bank operations Three-tiered approach for enterprise-wide risk management Level 1 Board of Directors Board/Executive Mgt. oversight Board Audit Board Risk Board Finance & General Board Corporat
Slide 7: Fidelity Bank has a strong focus on ESG Principles
Overview Operating Environment Financial Review Guidance Fidelity Bank has a strong focus on ESG Principles v Over N700m invested in Education, v 29% reduction in energy consumption Environment, Health & Social Welfare and over 3 years Youth Empowerment projects in 2023. v 28% reduction in carbon fo
Slide 8: Our scorecard
Overview Operating Environment Financial Review Guidance Our scorecard FY 2020 FY 2021 FY 2022 FY 2023 Gross Earnings N206bn N251bn N337bn N556bn (CAGR 39%) PBT (CAGR 64%) N28bn N25bn N54bn N124bn Savings Account N424bn N477bn N599bn N881bn (CAGR 28%) 8 Fidelity Bank information meant for public use
Slide 9: Our scorecard
Overview Operating Environment Financial Review Guidance Our scorecard FY 2020 FY 2021 FY 2022 FY 2023 Low-Cost Deposit N1,308bn N1,508bn N2,159bn N3,910bn (CAGR 44%) Total Deposits N1,699bn N2,025bn N2,581bn N4,015bn (CAGR 33%) Net Loans N1,326bn N1,658bn N2,116bn N3,092bn (CAGR 32%) 9 Fidelity Ban
Slide 10: Contribution to the Group’s performance
Overview Operating Environment Financial Review Guidance Contribution to the Group’s performance Total Assets (N’bn) Profit before Tax (PBT) | NPL Ratio FCY NGN Total N'bn % Share NPL Ratio Group 2,188 4,047 6,235 % Share 35.1% 64.9% Group 124.26 100.0% 3.5% Nigeria 2,075 4,047 6,122 % Share 33.9% 6
Slide 11: Deepening strong growth in NIR and customer reach through digital banking
Overview Operating Environment Financial Review Guidance Deepening strong growth in NIR and customer reach through digital banking Mobile/Online Customers # NIP Value (N’bn) E - Banking Transaction (#’Mn) 18.7% YTD > 5.1m+ 60% Mkt Share 32% % Total Trnx 432.7 29,838 326.8 92% 18,686 Debit Cardholder
Slide 12: Operating Environment
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Slide 13: Real GDP growth, inflation and macro environment
Overview Operating Environment Financial Review Guidance v Real GDP growth in Q4 2024 was 3.46% compared to 2.54% in Q3 Real GDP Growth 2023, while annual GDP growth was reported at 2.74% compared 3.52% 3.46% to 3.10% in 2022. 2.51% 2.31% 2.54% v Agriculture, Manufacturing, Construction, Trade, Info
Slide 14: Key regulatory and policy changes in 2023
Overview Operating Environment Financial Review Guidance Key regulatory and policy changes in 2023 v CBN issues guidelines for the regulation of representative v The CBN removed the FX restriction placed on 43 items to offices of foreign banks in Nigeria. stabilize the country's currency against the
Slide 15: Financial Review
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Slide 16: Impressive performance across key income and balance sheet lines
Overview Operating Environment Financial Review Guidance Impressive performance across key income and balance sheet lines Gross Earnings Customer Deposits CAR 64.9% 55.6% 190bps N555.8bn N4,014.8bn 16.2% Operating Income Net Loans & Advances NPL 114.9% 46.1% 60bps N386.6bn N3,092.4bn 3.5% Operating
Slide 17: Financial Performance Highlights - SCI
Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SCI Summary of Income Statement Ø Gross earnings grew by 64.9% due to 55.5% N’million 2022FY 2023FY % VAR increase in interest income and 132.2% growth in non-interest revenue (excl. gains from Fin. Instr.).
Slide 18: Driving sustainable earnings with 132.2% growth in non-interest revenue
Overview Operating Environment Financial Review Guidance Driving sustainable earnings with 132.2% growth in non-interest revenue 78.1% Breakdown of Gross Earnings Interest Income: Breakdown 80.6% N’billion 2022FY 2023FY VAR % VAR 55.5% Int. Inc. on Loans 236.0 365.9 129.9 55.0% 459.5 42.0% Int. Inc.
Slide 19: A combination of improved yield and lower funding cost boosted NIM
Overview Operating Environment Financial Review Guidance A combination of improved yield and lower funding cost boosted NIM Ø Higher asset yield and slight moderation in Avg. Yield on Earnings Assets avg. funding cost led to an increase in NIM to 8.1% from 6.3% in 2022FY. 13.5% 12.2% Ø Yield on earn
Slide 20: Dropped CIR to 50.4% despite increasing operating expenses
Overview Operating Environment Financial Review Guidance Dropped CIR to 50.4% despite increasing operating expenses and rising inflation Breakdown of OPEX Key drivers of OPEX: % Contributions CIR N’billion 2022FY 2023FY % Growth Regulatory Charges 26.5 34.2 29.0% Staff Cost 29.7 52.6 77.0% 67.1% Mar
Slide 21: Financial Performance Highlights - SFP
Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SFP Statement of Financial Position Ø Total assets increased by 56.3% to N6.2trn N’million 2022FY 2023FY VAR % VAR from N4.0trn in 2022FY. Total Assets 3,989,009 6,234,688 2,245,679 56.3% Ø 35.1% of the Group
Slide 22: Building a resilient balance sheet with a well-structured funding base
Overview Operating Environment Financial Review Guidance Building a resilient balance sheet with a well-structured funding base N’million 2022FY 2023FY VAR % VAR Ø Total customer deposits crossed the N4.0tn mark, Demand Deposits 1,559,170 3,028,939 1,469,769 94.3% which boosted the funding base. Sav
Slide 23: Sustained growth in low-cost deposits improves margins
Overview Operating Environment Financial Review Guidance Sustained growth in low-cost deposits improves margins Customer Deposits (N’bn) Customer Deposits by Type 27.5% 23.6% 32.9% 31.8% 34.3% 2023FY 2.6% 4,014.8 3,439.9 21.9% 3,178.8 16.4% 2,580.6 2,667.6 1,376.7 1,044.8 1,095.3 709.2 630.7 2022FY
Slide 24: Net Loans and advances
Overview Operating Environment Financial Review Guidance Net Loans and advances Net Loans & Advance (N’bn) Ø Net loans & advances increased by 46.1% to N3.1tn, 3,092.4 with 44.1% of the loan book within the 12 months or 2,647.7 2,654.9 2,161.4 809.4 less maturity portfolio. 2,116.2 441.6 479.6 0.1 7
Slide 25: Impact of Naira devaluation leads to increased impairment charge
Overview Operating Environment Financial Review Guidance Impact of Naira devaluation leads to increased impairment charge 2023FY Impairment Charge Impairment Charge N’billion ( 18.8 ) ( 67.4 ) 2023FY 67.4 ( 42.7 ) 1,139% ( 6.0 ) 2022FY 5.4 Stage 1 Stage 2 Stage 3 Total 2022FY Impairment Charge Total
Slide 26: Diversified loan book with focus on asset quality
Overview Operating Environment Financial Review Guidance Diversified loan book with focus on asset quality Gross Loans by Sector N’million 2022FY Q1 2023 H1 2023 9M 2023 2023FY VAR % VAR Communication 37,878 42,825 69,406 67,550 66,576 (974) -1.4% Oil and Gas 565,913 572,678 877,774 895,251 1,111,29
Slide 27: Sectoral contributions remain below internal guidance and portfolio limit
Overview Operating Environment Financial Review Guidance Sectoral contributions remain below internal guidance and portfolio limit of 20.0% % Contribution: 2023FY Gross Loans by Sector Government; 7.4% Oil & Gas: Service; 9.6% N’million 2022FY 2023FY VAR % VAR Construction; 3.4% Communication 37,878
Slide 28: Adequate coverage across stages with NPL coverage at 127.7%
Overview Operating Environment Financial Review Guidance Adequate coverage across stages with NPL coverage at 127.7% Gross Loan Book by Stage N’million Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Communication 48,426 2,510 15,641 66,576 72.7% 3.8% 23.5% 2.1% Oil and Gas 636,531 451,5
Slide 29: Non-performing loans (NPL) analysis
Overview Operating Environment Financial Review Guidance Non-performing loans (NPL) analysis NPL Analysis 2022FY 2023FY VAR % VAR 2022FY 2023FY N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,748 15,641 13,893 794.8% 4.6% 23.5% Oil and Gas 4,738 23,184 18,446 389.3% 0.8% 2.1% - O
Slide 30: Focus remains on asset quality as the loan book increases
Overview Operating Environment Financial Review Guidance Focus remains on asset quality as the loan book increases Non-performing Loan (NPL) Ratio NPL Contribution by Sector (2022FY Vs. 2023FY) Co mmunicatio n: 3% Vs 14% 0% Oil & Gas: Upstream: 0% Vs 0% 14% 3.7% 2023FY 19% 0% Transport: 18% Vs 4% 3.
Slide 31: CAR remains above regulatory minimum despite Naira devaluation
Overview Operating Environment Financial Review Guidance CAR remains above regulatory minimum, despite the impact of Naira devaluation Capital Adequacy Ratio Computation – Basel II Capital Adequacy Ratio Trend N’billion N‘billion 2022FY 2023FY VAR 5 1 0 437.3 3 0 % 4 2 5 402.6 410.8 Tier 1 Capital 2
Slide 32: 2024FY Guidance
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Slide 33: Actual Vs. Target
Overview Operating Environment Financial Review Guidance Actual Vs. Target 2023FY Actual 2023FY Target Comment 2024FY Target PBT N124.4bn N70.0bn Achieved N170.0bn Loan Growth 26.1% 10.0% - 15.0% Achieved 10.0% - 15.0% Deposit Growth 55.6% 15.0% - 20.0% Achieved 15.0% - 20.0% Net Interest Margin 8.1
Slide 34: Fidelity Bank Plc. contact details
Fidelity Bank Plc. 2 Kofo Abayomi Street, Victoria Island, Lagos, Nigeria +234 (01) 4480853 info.investor@fidelitybank.ng www.fidelitybank.ng Fidelity Bank information meant for public use