Fidelity Bank Plc · NSENG:FIDELITYBK

Fidelity Bank — H1 2021 Earnings Presentation

29 slides from Fidelity Bank's earnings presentation, Jun 30, 2021

  1. Slide 1: Fidelity Bank Investor Presentation

    Fidelity Bank Investor Presentation Audited Financial Results for the 6 months ended June 30, 2021

  2. Slide 2: Disclaimer

    Disclaimer Please read the following before continuing: This presentation is based on Fidelity Bank Plc (‘Fidelity’ or ‘the Bank’) half year audited financial statements for the period ended 30 June 2021. Aside the extracts from the published financial statements, Fidelity has obtained some informat

  3. Slide 3: Content

    Content Section Page 1. Overview of Fidelity Bank 5 2. Operating Environment 10 3. Financial Review 13 4. Update on 2021FY Target 28 3

  4. Slide 4: Virtually All You Need To Keep Enjoying Netflix

  5. Slide 5: Fidelity Bank at a glance

    Overview Operating Environment Financial Review Guidance > 250 Business Offices NC 13% NW 7% SW > 6m+ 39% Business > 250 Offices SS 19% Customer Accounts 18% 4% Our Vision: > 3,000 NE To be number 1 in SE every market we serve and for every branded Professional Staff products we offer NC > 135 Call

  6. 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 Finance & General Board Corporate Board Audit Committee

  7. Slide 7: Impressive performance amid challenging environment

    Overview Operating Environment Financial Review Guidance Impressive performance amid challenging environment Gross Earnings Customer Deposits CAR 6.2% 16.5% 60bps N112.3bn N1,980.2bn 18.8% Operating Revenue Net Loans & Advances NPL 10.2% 15.8% 100bps N70.2bn N1,535.4bn 2.8% Operating Expenses Total

  8. Slide 8: Deepening strong growth in NII and customer reach through Digital Banking

    Overview Operating Environment Financial Review Guidance Deepening strong growth in NII and customer reach through Digital Banking Mobile/Online Customers # NIP Value (N’bn) E - Banking Transaction #’Mn 10.9% YTD > 3.3m+ 92.2% 5,859 Mkt Share 52.8% 115.2 % of 2020FY 75.4 3,048 71% Debit Cardholders

  9. Slide 9: Operating Environment

    Fidelity

  10. Slide 10: The Nigerian economy grew strong in Q2 with 5.0% growth in Real GDP

    Overview Operating Environment Financial Review Guidance  The Nigerian economy grew strong in Q2 with 5.0% growth in Real GDP Growth Real GDP compared to 0.51% in Q1 2021. The growth reflects the 5.0% gradual recovery of major sectors affected by the pandemic. 0.5% 0.1%  Transportation and Trade w

  11. Slide 11: Key regulatory and policy changes

    Overview Operating Environment Financial Review Guidance Key regulatory and policy changes  MPR retained at 11.5% and the asymmetric corridor  CBN issued regulatory framework for Open Banking remain unchanged at +100/-700bps.  SEC released general rules for Collective Investment Jan  The Finance

  12. Slide 12: Financial Review

    P Fidelity

  13. Slide 13: Financial Performance Highlights - SCI

    Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SCI Summary of Income Statement  Gross earnings increased by 6.2% YoY as the N’million H1 2020 H1 2021 % VAR gradual recovery of business activities translated to an increase in non-interest revenue. Gross E

  14. Slide 14: Driving sustainable and improving earnings with non-interest income

    Overview Operating Environment Financial Review Guidance Driving sustainable and improving earnings with non-interest income Gross Earnings Double-digit growth across key NIR Lines N’billion 5% H1 2021 18% % Growth 112.3 4% 6.2% 18% 27.8% 23.2 7% 8% 1.0 34 42% H1 2020 46% 17% 18.1 7% 20% 0.8 105.8 9

  15. Slide 15: Net Interest Margin Analysis

    Overview Operating Environment Financial Review Guidance Net Interest Margin Analysis  NIM dropped to 5.3% from 6.4% in H1 2020 Avg. Yield on Earnings Assets (2020FY: 6.3%) as the decline in average yield on earnings assets surpassed improved 11.5% average funding cost in H1 2021. 9.4%  Drop in av

  16. Slide 16: Consistent drop in OPEX translates to improved CIR

    Overview Operating Environment Financial Review Guidance Consistent drop in OPEX translates to improved CIR currently at 64.8% in H1 (Q2: 62.8%) OPEX dropped by 9.8% YoY | 16.0% QoQ Key drivers of OPEX: % Contributions CIR N’billion 9.8% 46.8 70.3% 20.7% 26.3% 64.8% 42.2 1.9% 12.2 1.7% 8.2% 11.1 0.6

  17. Slide 17: Financial Performance Highlights - SFP

    Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SFP Statement of Financial Position  Total assets grew by 12.8% to N3,110.8bn N’million 2020FY H1 2021 VAR % VAR ($7.6bn) from N2,758.1bn in 2020FY. Total Assets 2,758,148 3,110,835 352,687 12.8%  Total FCY

  18. Slide 18: Increased customer deposits is changing our funding structure

    Overview Operating Environment Financial Review Guidance Increased customer deposits is changing our funding structure N’million 2020FY H1 2021 VAR % VAR  Customer deposits constitute 68.6% of total funding Demand Deposits 883,300 1,046,064 162,764 18.4% base from 66.8% in 2020FY. Savings Deposits

  19. Slide 19: Low cost deposits accounted for 75.5% increase in total customer deposits

    Overview Operating Environment Financial Review Guidance Low cost deposits accounted for 75.5% increase in total customer deposits Customer Deposits Customer Deposits by Type 21.4% 21.2% 17.5% 18.3% 18.5% 1,980.2 Time Deposits, Demand Deposits, 1,699.0 1,751.3 25.1% 1,405.9 1,498.4 367.1 52.8% 298.2

  20. Slide 20: Loans & Advances Analysis

    Overview Operating Environment Financial Review Guidance Loans & Advances Analysis Net Loans & Advance  Net loans & advances increased by 15.8% YTD to N'billion N1,535.4bn, with 30.7% of the loan book within the 12 1,426.3 1,535.4 1,326.1 months or less maturity portfolio. 1,272.5 10.1 14.9 1,209.1

  21. Slide 21: Improved asset quality led to a drop in impairment charge

    Overview Operating Environment Financial Review Guidance Improved asset quality as the economy recover led to a drop in impairment charge H1 2021 Impairment Charge Impairment Charge ( 7,537 ) 5,604 H1 2021 ( 2,305 ) - 70.6% ( 2,305 ) (372) H1 2020 ( 7,841 ) Stage 1 Stage 2 Stage 3 Total H1 2020 Impa

  22. Slide 22: Diversified loan book with focus on asset quality

    Overview Operating Environment Financial Review Guidance Diversified loan book with focus on asset quality % Contribution (H1 2021) Gross Loans by Sector 2020FY Q1 2021 H1 2021 VAR % VAR Government; 11.5% Oil & Gas: Service; 8.5% N’million Consumer; 3.7% Construction; 4.7% Communication 32,217 29,77

  23. Slide 23: Adequate coverage for Stage 3 Loans at 68.0%

    Overview Operating Environment Financial Review Guidance Adequate coverage for Stage 3 Loans at 68.0%. Gross Loan Book by Stage Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Communication 17,723 11,507 1,940 31,170 56.9% 36.9% 6.2% 1.9% Oil and Gas 266,730 140,662 4,130 411,521 64.8% 3

  24. Slide 24: Non-performing loans (NPL) analysis

    Overview Operating Environment Financial Review Guidance Non-performing loans (NPL) analysis NPL Analysis 2020FY H1 2021 VAR % VAR 2020FY H1 2021 N'million N'million N'million % NPL Ratio NPL Ratio Communication 1,932 1,940 7 0.4% 6.0% 6.2% Oil and Gas 4,469 4,130 (340) -7.6% 1.4% 1.0% - Oil & Gas U

  25. Slide 25: 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 (2020FY Vs. H1 2021) 0% Communication: 4% Vs 4% H1 2021 0% 4.8% 4.7% 4% Oil & Gas: Upstream: 0% Vs 0% 3.8% 3.6% Transport: 31%

  26. Slide 26: CAR stood at 18.8%, well above the regulatory minimum of 15.0%

    Overview Operating Environment Financial Review Guidance CAR stood at 18.8%, well above the regulatory minimum requirement of 15.0% Capital Adequacy Ratio Computation – Basel II Capital Adequacy Ratio Trend N‘billion 2020FY H1 2021 VAR 262.2 273.5 264.4 273.4 250.7 30% Tier 1 Capital 224.3 236.0 11.

  27. Slide 27: The Code You Should Never Forget

    PW Fidelity The Code You Should Never Forget Dial Now To Get Started Pay Bills Buy Airtime Transfer and more ows GOHOs www.fidelitybank.ng

  28. Slide 28: Actual Vs. Target

    Overview Operating Environment Financial Review 2021FY Target Actual Vs. Target H1 2021 2021FY Target Comment PBT N20.6bn N35.2bn On Track Loan Growth 15.8% 10.0% - 15.0% On Track Deposit Growth 16.5% 15.0% - 20.0% On Track Net Interest Margin 5.3% 6.0% - 6.5% Behind Target Cost to Income Ratio 64.8

  29. Slide 29: 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

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