Fidelity Bank Plc · NSENG:FIDELITYBK
Fidelity Bank — FY2019 Earnings Presentation
34 slides from Fidelity Bank's earnings presentation, 2019
Slide 1: Fidelity Bank Investor Presentation
Fidelity Bank Investor Presentation Audited Financial Results for the 12 months ended December 31, 2019 www.fidelitybank.ng
Slide 2: Outline
Outline 1. Overview of Fidelity Bank 2. The Operating Environment 3. Financial Highlights 4. Financial Review 5. 2019FY 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: N2,114bn Issued And 28.96bn Fully Paid $5.8bn 7yr N30bn May 2022 NGN Bonds $400m Oct 2022 Eurobond Professional Staff 2,933 833 ATMs Male: 54% Operations 5.3 Million Female: 46% & Accounts 2.2m Cards
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) 275.2 66.0 5.3 228.0 57.2 4.5 53.8 3.9 178.6 44.8 3.6 3.3 155.0 37.6 119.1 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016
Slide 6: The Operating Environment
2. The Operating Environment 6 www.fidelitybank.ng 3
Slide 7: The Operating Environment
The Operating Environment Declining global macros Credit to the Private Sector may affect 2020 budget will stabilize despite New implementation LDR Threshold Declining Foreign Reserves as oil prices Political risk is hit new low significantly reduced Yields are ticking up amid Naira under pressure r
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 15.8% to N182.3 billion in 2019FY (2018FY: N157.5 billion) Revenue Operating Expenses up by 13.7% to N82.0 billion in 2019FY (2018FY: N72.1 billion) and Cost to Income Ratio increased to 73.4% in 2019FY from 71.1% in 2018FY Efficiency Ratio
Slide 10: Financial Highlights
Financial Highlights Gross earnings increased by 14.0% YoY to N215.5 billion driven largely by a 15.8% growth in interest and similar income which accounted for 84.6% of total earnings. Non-interest income increased by N1.6 billion to N33.2 billion on account of double-digit growth across key ac
Slide 11: Financial Highlights
Financial Highlights LCY deposits came in at N936.6 billion representing 76.4% of total deposits while FCY deposits increased to N288.6 billion and now accounts for 23.6% of total deposits from 18.4% in 2018FY. Savings deposits increased by 20.7% YTD to N275.2 billion in 2019FY from N228.0 billi
Slide 12: Financial Highlights: Income Statement YoY
Financial Highlights Summary of Income Statement: YoY Change N’million 2018FY 2019FY VAR % VAR Gross Earnings 189,005 215,514 26,509 14.0% Interest Income Loans 114,711 136,707 21,996 19.2% Interest Income Liquid Assets 42,740 45,637 2,897 6.8% Total Interest Income 157,451 182,344 24,893 15.8% Inte
Slide 13: Financial Highlights: Income Statement QoQ
Financial Highlights Summary of Income Statement: QoQ Change N’million Q1 2019 Q2 2019 Q3 2019 Q4 2019 VAR % VAR Gross Earnings 48,423 55,232 57,400 54,460 (2,940) -5.1% Interest Income Loans 28,400 33,685 36,475 38,147 1,672 4.6% Interest Income Liquid Assets 11,030 12,715 12,811 9,081 (3,730) -29.
Slide 14: Financial Highlights: Statement of Financial Position
Financial Highlights Statement of Financial Position: YTD Change N’million 2018FY 2019FY VAR % VAR Total Assets 1,719,883 2,114,037 394,154 22.9% Earning Assets 1,198,988 1,474,252 275,264 23.0% Bank Placements 58,755 55,812 (2,943) -5.0% Treasury Bills 189,236 183,363 (5,873) -3.1% Bonds 101,117 10
Slide 15: Gross Earnings Analysis
Gross Earnings Analysis Key Highlights (N’m) 2018FY 2019FY VAR % VAR Total Earnings: 2018FY Total Earnings: 2019FY Maint. Fee, 2% Trade, 1% Maint. Fee, 2% Trade, 1% Total Earnings 189,005 215,514 26,509 14.0% Digital, 4% Others, 3% Digital, 4% Others, 6% Interest Income Loans 114,711 136,707 21,996
Slide 16: Net Interest Margin Analysis
Net Interest Margin Analysis NIM improved to 6.2% in 2019FY from 5.8% in 2018FY, as NIM Trend the drop in average funding cost surpassed the moderation in average yields on earning assets. 6.0% 6.2% 5.8% 5.8% 5.4% Average funding cost dropped to 6.3% from 6.7% in 9M 2019 due to a combination of
Slide 17: Total Expense Analysis
Total Expense Analysis Key Highlights (N’m) 2018FY 2019FY VAR % VAR Total Expenses: 2018FY Total Expenses: 2019FY Total Expenses 72,128 81,992 9,864 13.7% Others Staff Cost, Others Exp., Staff Cost, Exp., 36% 33% 40% 29% Staff Cost 23,910 24,129 219 0.9% Depreciation 6,247 5,421 (826) -13.2% NDIC/AM
Slide 18: Financial Review - SFP
4. Financial Review - SFP www.fidelitybank.ng 6 6 18 6
Slide 19: Funding Base Analysis
Funding Base Analysis Key Highlights (N’m) 2018FY 2019FY VAR % VAR Funding Structure: 2018FY Funding Structure: 2019FY Demand Deposits 571,329 691,610 120,281 21.1% Debt, 11% Equity, 12% Debt, 9% Equity, 12% Savings Deposits 227,970 275,219 47,249 20.7% Tenor Deposits 180,114 258,384 78,270 43.5% Ot
Slide 20: Deposits Analysis
Deposits Analysis Total customer deposits increased by 25.1% to N1,225.2bn Total Deposits from N979.4bn in 2018FY. N’billion LCY deposits grew by 17.1% to N936.6bn and accounted 18.4% 19.3% 19.6% 23.6% 23.6% for 76.4% of total deposits. 1,225.2 1,097.0 1,116.4 979.4 1,017.0 FCY deposits increa
Slide 21: Retail Banking Analysis (Personal Banking)
Retail Banking Analysis (Personal Banking) Savings deposits grew by 20.7% YTD and now represent 22.5% Savings Deposits Trend of total deposits. N’billion 23.3% 23.8% 22.6% 22.3% 22.5% Growth was as a result of the disciplined execution of our retail banking strategy and improved cross-selling of
Slide 22: Liquid Assets Position
Liquid Assets Position Short-term Funds Placements Treasury Bills Bonds 26.3% 2.6% 8.7% 5.1% 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% 35.0% 67.5% 65.8% 68.4% 68.2% 34.8% 64.2% 33.2% 32.6% 30.0% 30.0
Slide 23: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers: 2018FY Vs. 2019FY N’million 2018FY 2019FY VAR % VAR Communication 22,463 32,416 9,953 44.3% Oil and Gas 207,918 244,799 36,881 17.7% - Upstream 120,489 132,860 12,372 10.3% - Downstream 32,950 52,203 19,253 58.4% - Services 54,480 5
Slide 24: Loan Portfolio Analysis
Loan Portfolio Analysis Breakdown of Loans & Advances to Customers Loan Analysis – 2019FY Construction, Agriculture, Others, 5.1% N’million Q1 2019 Q2 2019 Q3 2019 Q4 2019 2.8% 3.0% Communication 25,972 25,426 29,203 Communication, 32,416 Oil & Gas: 2.8% Oil and Gas 231,061 227,370 254,790 244,799 S
Slide 25: Loan Book Analysis
Loan Book Analysis Net loans and advances increased by 32.6% to Net Loans and Advances to Customers N1,127.0bn driven by 4 sectors (Manufacturing |Transport N’billion |Government |Oil & Gas Downstream). 58.9% 58.1% 60.9% 56.4% 58.8% In absolute terms, the 4 sectors were responsible for 66.2% 1,0
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 19,578 11,639 1,198 32,416 Oil and Gas 131,549 97,913 15,336 244,799 - Upstream 73,395 59,290 175 132,860 - Downstream 26,655 11,924 13,624 52,203 - Services 31,498 26,6
Slide 27: NPL Analysis
NPL Analysis NPL ratio (Stage 3 Loans) declined to 3.3% from 5.7% in Gross Loans and Advances 2018FY due to a combination of improved assets quality N'billion and increased total loan book by about 30.0%. 1,126.5 1,178.4 1,024.2 1,050.2 Stage 3 loans declined by 25.1% YTD to N38.6bn driven 906.6
Slide 28: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans: 2018FY Vs. 2019FY 2018FY 2019FY VAR % VAR 2018FY 2019FY N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,155 1,198 43 3.7% 5.1% 3.7% Oil and gas 12,374 15,336 2,962 23.9% 6.0% 6.3% - Oil & Gas Upstream - 175 175 100.0 0.0%
Slide 29: NPL Portfolio Analysis
NPL Portfolio Analysis Breakdown of Non-performing Loans NPL Analysis – 2019FY Others, 10.3% Communication, Power, 0.0% N’million Q1 2018 H1 2019 9M 2019 2019FY 3.1% Communication Construction, Oil & Gas: 1,229 1,722 2,417 1,198 8.0% Upstream, 0.5% Oil and Gas 12,467 16,859 15,621 15,336 Oil & Gas:
Slide 30: Capital Adequacy
Capital Adequacy CAR is now 18.3% which remains well above the Capital Adequacy Ratio Computation – Basel II regulatory minimum requirement of 15.0%. N‘billion 2018FY 2019FY VAR Regulatory adjustment dropped to N10.6bn on account of increased capitalized profit which boosted total equity in Tier
Slide 31: 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: 10.8% Banking Treasury Conglomerates 33.5
Slide 32: 2019FY Actual Vs. 2020FY Guidance
5. 2019FY Actual Vs. 2020FY Guidance 32 www.fidelitybank.ng 3
Slide 33: 2019FY Actual Vs. 2020FY Guidance
2019FY Actual Vs. 2020FY Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N Index 2019FY Actual 2019FY Target Comment 2020FY Target 1 Net Interest Margin 6.2% 6.0% – 6.5% Achieved 5.5% - 6.0% 2 Tax Rate 6.4% 10.0% – 15.0% Achieved 10.0% – 15.0% 3 Loan Growth (YTD) 32.6% 7.5% - 10.0% Achieved 5.0% -
Slide 34: 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