Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Audited Financial Results for the year ended December 31, 2014 12KLD0346_Client template1 09/04/2015 08:23:14
Slide 2: Outline
Outline 1 Fidelity Overview 2 Nigerian Economy Overview 3 Financial Highlights 4 Financial Review 5 2015 Guidance 12KLD0346_Client template1 09/04/2015 08:19:49
Slide 3: Overview of Fidelity Bank
Overview of Fidelity Bank Background Key Highlights A full service bank with International Authorisation established in 1987 and licensed by the Central Bank of Nigeria Total Assets N1,187.0 million The Bank currently has over 400,000 shareholders with the majority being Nigerian citizens and co
Slide 4: Outline
Outline 1 Fidelity Overview 2 Nigerian Economy Overview 3 Financial Highlights 4 Financial Review 5 2015 Guidance 12KLD0346_Client template1 09/04/2015 08:14:12
Slide 5: Economic Overview
Economic Overview Headline Inflation(2014) Headline Inflation Headline inflation inched up to 8.0% YoY in Dec 2014, after edging 8.5% 8.3% 8.3% down in 4 consecutive months. 8.1% 8.0% 8.2% 8.0% 7.9% Increase in food prices accounted for the jump which reflected on the 7.9% 8.0% 7.7% 7.8% 10bps r
Slide 6: Outline
Outline 1 Fidelity Overview 2 Nigerian Economy Overview 3 Financial Highlights 4 Financial Review 5 2015 Guidance 12KLD0346_Client template1 09/04/2015 08:14:12
Slide 7: Performance Highlight
Performance Highlight Gross Earnings up by 4.3% to N132.4.0 billion in 2014FYE (2013FYE: N126.9 billion) Revenue Net Interest Income inched up by 58.5% to N48.8 billion (2013FYE: N30.8 billion) and PBT increased by 71.9% to N15.5 billion in 2014FYE (PAT came in at N9.0 billion) Efficiency Rati
Slide 8: Financial Highlights
Financial Highlights Summary of Income Statement – 2014 FYE Vs 2013 FYE 2014 FYE 2013 FYE VAR % VAR Gross Earnings 132,401 126,918 5,483 4.3% Interest Income Loans 70,981 51,017 19,964 39.1% Interest Income Liquid Assets 33,326 35,240 (1,914) -5.4% Total Interest Income 104,307 86,257 18,050 20.9% I
Slide 9: Financial Highlights
Financial Highlights Summary of Income Statement– Quarterly Trend (Naira in million) Q4-2014 Q3-2014 Q2-2014 Q1-2014 Gross Earnings 36,378 32,765 32,303 30,955 Interest Income Loans 19,367 18,127 16,763 16,724 Interest Income Liquid Assets 8,122 7,163 8,497 9,544 Total Interest Income 27,489 25,290
Slide 10: Financial Highlights
Financial Highlights Statement of Financial Position: 2014 FYE Vs 2013 FYE (Naira in million) 2014 FYE 2013 FYE VAR % VAR Total Assets 1,187,025 1,081,217 105,808 9.8% Earning Assets 818,993 751,747 67,246 8.9% Bank Placements 42,049 13,000 29,049 223.5% Treasury Bills 184,342 239,885 -55,543 -23.2%
Slide 11: Financial Highlights
Financial Highlights Statement of Financial Position: Quarterly Trend (Naira in million) Q4 – 2014 Q3 – 2014 Q2 – 2014 Q1 – 2014 Total Assets 1,187,025 1,115,922 1,058,235 1,042,962 Earning Assets 818,993 774,260 718,383 698,829 Bank Placements 42,049 26,900 23,450 9,500 Treasury Bills 184,342 189,7
Slide 12: Financial Highlights
Financial Highlights Earnings came strong on the back of improved balance sheet optimization and upward adjustment in retail lending rate. PBT grew by 71.9% largely on account of 27.1% growth in loans and advances and reduced cost of funds regime. Steady quarterly growth in interest income which
Slide 13: Outline
Outline 1 Fidelity Overview 2 Nigerian Economy Overview 3 Financial Highlights 4 Financial Review 5 2015 Guidance 12KLD0346_Client template1 09/04/2015 08:14:12
Slide 14: Gross Earnings Analysis
Gross Earnings Analysis Key Highlight (N’million) 2014 FYE 2013 FYE Gross Earnings : 2014 FYE Gross Earnings: 2013 FYE Gross Earnings 132,401 126,918 E-banking, Other E-banking, Other Interest Income Loans 70,981 51,017 2% Income, 3% 1% Income, 12% COT, 3% Interest Income Liquid Assets 33,326 35,240
Slide 15: Efficiency Ratio
Efficiency Ratio Net Interest Income Net interest income grew by 58.5% on the back of N'billion improved balance sheet optimization driven by an 48.8 increase in the yields on earning assets and a decline in funding cost. 30.8 Operating income growth largely driven by fund based income. RoE tr
Slide 16: Expense Analysis
Expense Analysis Key Highlight (N’million) 2014 FYE 2013 FYE Operating Exp: 2014 FYE Operating Exp: 2013 FYE Total Expenses 57,099 54,305 Staff 25,874 25,629 Others Exp., Others Exp., Depreciation 3,733 3,211 28% 28% Staff Cost, Staff Cost, Regulatory (NDIC/AMCON) 9,267 7,904 45% 47% Technology Cost
Slide 17: Cost Dynamics
Cost Dynamics Operating Expenses & Staff Cost Staff cost, depreciation and regulatory charges N'billion % Share account for almost 70% of total expenses. 60 57.1 100% 54.8 With the current cost structure, CRR improvement will 75% 50 be largely driven by increase in the revenue base 50% 40 46.8%
Slide 18: Funding Structure
Funding Structure Key Highlights (N’m) 2014 FYE 2013 FYE Funding Structure: 2014FYE Funding Structure: 2013FYE Demand Deposits 424,397 453,845 Equity, 16% Equity, 15% Savings Deposits 97,996 83,325 Eurobond, Time Deposits 297,641 269,150 Eurobond, Demand, 4% 5% 38% Borrowings, Demand, Borrowings 62,
Slide 19: Strong Funding Base
Strong Funding Base Customer Deposits There was a marginal growth of 1.7% in total deposits N'billion driven by savings and better priced tenor deposits. 806.3 820.0 Increased migration by customers to tenor funds in view of tight monetary policies during the year. Though low cost deposits rat
Slide 20: Sound Liquidity Position
Sound Liquidity Position Sustained adequate liquidity ratio which stood at 38.0%, Liquidity Ratio well above the regulatory minimum of 30.0%. About 83.3% of liquid assets is invested in government 45.7% bonds, treasury bills and interbank placement. 38.0% Loan to deposit rate is ticking up as
Slide 21: Portfolio Analysis
Portfolio Analysis Breakdown of Loans & Advances: 2014 FYE Vs 2013 FYE (Naira in million) 2014 FYE 2013 FYE VAR % VAR Communication 76,480 88,171 (11,691) -13.3% Oil and gas 134,750 77,215 57,535 74.5% Power 57,626 50,017 7,609 15.2% Manufacturing 51,323 30,480 20,843 68.4% General Commerce 47,502 2
Slide 22: Portfolio Analysis
Portfolio Analysis Breakdown of Loans & Advances Portfolio Analysis – 2014 FYE Agriculture, Real Estate, 2.6% 2.2% Others, 7.8% (Naira in million) Q4–2014 Q3–2014 Q2–2014 Q1–2014 Construction, Communication 76,480 86,204 87,229 87,973 3.3% Communication, 13.7% Government, Oil and gas 134,750 122,410
Slide 23: Diversified Loan Book
Diversified Loan Book Net Loans and Advances to Customers Gross loan book grew by 26.0% basically driven by Oil N'billion & Gas, Manufacturing, General Commerce, 541.7 Transportation and Consumer lending. 426.1 Currency revaluation accounted for about 8.1% of the total growth in the total loan b
Slide 24: Portfolio Analysis
Portfolio Analysis Breakdown of Non-performing Loans: 2014 FYE Vs 2013 FYE (Naira in million) 2014 FYE 2013 FYE N’million % Contr. % NPL N’million % Contr. % NPL Communication 3,628 14.9% 4.7% 3 0.0% 0.0% Oil and gas 605 2.5% 0.4% 2,372 14.4% 3.1% Power 0 0.0% 0.0% 0 0.0% 0.0% Manufacturing 7,393 30
Slide 25: Portfolio Analysis
Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – 2014 FYE Others, 15.1% Communication, 14.9% (Naira in million) Q4–2014 Q3–2014 Q2–2014 Q4–2013 Real Estate, Oil and gas, 1.9% Communication 3,628 4,458 3,089 3 2.5% Agriculture, 2.7% Power, 0.0% Oil and gas 605 2,167 2,345 2,372 Con
Slide 26: Improving Loan Quality
Improving Loan Quality Gross Loans & Advances NPL ratio has been kept below the CBN minimum N'billion requirement of 5.0% since Dec 2012, on account of 559.1 improved loan quality and monitoring system. 442.6 Increased NPL was caused by newly classified loans in the Communication, Manufacturing,
Slide 27: Capital Adequacy
Capital Adequacy Capital Adequacy Ratio Capital Adequacy Ratio (CAR) remains strong at N'billion % Ratio 23.2% compared to the regulatory minimum 163.5 173.1 180 40% requirement of 15.0%. 30% 120 The current CAR is adequate to support business risks 25% 23% 20% and short to medium term growth ob
Slide 28: Business Segment Analysis
Business Segment Analysis Business Description Revenue Deposits Loans Handles the bank’s institutional clients with turnover in excess of ₦10.0bn. Corporate & Investment Key focus sectors include: 35.0% 14.3% Oil & gas upstream Oil & gas downstream 74.2% Banking Power & infrastructure Te
Slide 29: Outline
Outline 1 Fidelity Overview 2 Nigerian Economy Overview 3 Financial Highlights 4 Financial Review 5 2015 Guidance 12KLD0346_Client template1
Slide 30: Growth Expectations
Growth Expectations GROWTH EXPECTATIONS ON KEY INDICATORS S/N INDEX 2014 Actual 2015 TARGET RATIONALE Based on low cost deposits and earning assets 1 Net Interest Margin 6.0% 7% growth expectations Based on the impact of amended tax rebates on 2 Tax Rate 11.1% 10% to 15% Govt. Securities and tax cre
Slide 31: Thank You
MP rrvenrry Thank You