#1Fidelity Bank Investor Presentation Audited Financial Results for the 12 months ended December 31, 2021 Fidelity#2Disclaimer 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 2021. Aside the extracts from the published financial statements, Fidelity has obtained some information from sources it believes to be credible. Although Fidelity has taken all reasonable care to ensure that the information in this presentation is accurate and correct, Fidelity makes no representation or warranty, express or implied, as to the accuracy, correctness or completeness of the information. In addition, some of the information in this presentation may be condensed or incomplete and this presentation may not contain all material information in respect of the Bank's financial performance for the period under review. In addition, this presentation contains projections, targets and forward-looking statements with respect to the financial performance of the Bank, business operations, capital position, strategy and the operating environment etc. These statements may include, without limitation, any statements preceded by, followed by or including words such as "may", "will", "should", "expect", "anticipate", "project", "plan", “estimate”, "seek", "intend", "target" "target" or "guidance" and similar terms and phrases have been used to identify the forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Bank's control. Fidelity Bank expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the Information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date of this document. Market data used in the Information not attributed to a specific source are estimates of the Bank and have not been and will not be independently verified. 2#3Content Section 1. Overview of Fidelity Bank 2. Operating Environment Page 5 10 3. Financial Review 4. 2022FY Guidance 13 29 3#4Virtually All You Need To Keep Enjoying Netflix Fidelity Virtual Card 1234 5678 9876 5432 CARDHOLDER NAME VISA ☑Fidelity#5Overview Operating Environment Financial Review Guidance Our Vision: To be number 1 in every market we serve and for every branded products we offer > 250 Business Offices 200 > 6.5m+ Business Segment 23.0% Revenue Customer Accounts 32.3% > 2,974 Professional Staff 44.7% 13.5% од > 135 PBT 57.3% Call Centre Agents 29.1% > 20k Banking Agents Retail Corporate Invt. Banking ■" Agusto&Co. Fitch Ratings B-/Stable/B Research, Credit Ratings, Crevit Risk Management A/Stable OGRS S&P Global B-/Stable/B NINGX GCR A/Stable MOODY'S B2/Stable Rated and In compliance with the NGX Corporate Governance Rating System (CGRS) Better For Business RATED Listings: FMDQ OTC Securities Exchange EURONEXT 5#6Overview Operating Environment Financial Review Guidance Level 1 Robust risk management is at the core of Fidelity Bank operations Three-tiered approach for enterprise-wide risk management Board/Executive Mgt. oversight Level 2 Senior management function Level 3 Support functions Board of Directors Board Audit Committee Board Risk Committee Board Credit Committee Board Finance & General Purpose Committee Management Credit & Investment Committee Criticised Asset Committee Chief Risk Officer Head, Market Risk Management & ALM Head, Credit Administration Head Risk Strategy Branches Human Resources Management Business Units Board Corporate Governance Committee Asset & Liability Management Committee Operational Risk & Service Measurements Committee Head, Loan Processing Division Head, Remedial Asset Management Group Corporate Audit Head, IT & Operational Risk Management Group Support Units Fidelity Bank operates a best-in-class risk management and corporate governance framework that meets or exceeds all legal and regulatory requirements The framework provides comprehensive controls, continuous monitoring and management of the major risks inherent in the Bank's activities 6#7Overview Operating Environment Financial Review Guidance Impressive performance amid challenging environment Gross Earnings 21.6% N250.8bn Customer Deposits CAR 19.2% 193bps N2,024.8bn 20.1% Net Fee Income Net Loans & Advances NPL 65.6% 25.1% 91bps N38.6bn N1,658.4bn 2.9% Operating Expenses Total Assets ROAE 0.2% ▲ 19.3% 195bps N83.5bn N3,289.5bn 12.5% PBT: ▲ 35.7% to №38.1bn 7#8Overview Operating Environment Financial Review Guidance Deepening strong growth in NII and customer reach through Digital Banking Mobile/Online Customers # 21.5% YTD > 3.6m+ 7,659 Debit Cardholders # 14.6% YTD >2.7m+ 835 > 40k ATM # 0.7% YTD POS # 183.7% YTD NIP Value (N'bn) 72% 13,148 Mkt Share 2020FY 2021 FY POS Value (N'bn) 219 -5% Mkt Share 479 119% 2020FY 2021FY -7% E-Banking Transaction #'Mn 161.1 63.6% % Total Trnx 263.6 90% 2020FY 2021FY % E-Banking Income to NIR 22.6% NIR excludes losses from fin. Instruments & Fee Expense 80#9GROW YOUR EXPORT BUSINESS WITH FIDELITY Visit any of our branches today for: •Ready Market Access • Enhanced Capacity • Financing. Fidelity#10Overview Operating Environment Financial Review Guidance The Nigerian economy sustained QoQ real GDP growth from Q4 2020. GDP grew by 3.98% in Q4 compared to 4.03% in Q3 2021 (Annual Real GDP was 3.40% in 2021 Vs. -1.92% in 2020). Real GDP Growth 5.01% 4.03% 3.98% 0.11% 0.51% Agriculture, Trade, Information, Telecommunication and Q2 '20 Q4 '20 Q2 '21 Q4'21 Financial Insurance etc. were the top drivers of GDP growth in 2021. -3.62% -6.10% Headline Inflation Rate Headline inflation increased to 15.6% in December 2021 from 15.4% in November 2021. 17.8 18.1 17.3 15.8 Rise in food inflation was driven largely by increases in prices of bread, cereals, potatoes, yam, oil and fats, fruits. Trading on Bonny Light in December 2021 closed at $76.3pb while daily crude oil production in 2021 averaged 1.493 million bpd compared to 1.312 million in 2020. ✰ Currently, Brent Crude is trading at $116.73 per barrel while Bonny Light is trading at $110.1 per barrel spot price. Dec-20 15.6 17.0 16.0 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21 Bonny Light ($ per barrel) 78.0 66.8 73,2 76.3 84.4 51.3 66.1 External reserves stood at $40.2bn at the end of Q4 2021, compared to $36.8bn in Q3 2021. Dec-20 Feb-21 Apr-21 Jun-21 Aug-21 Oct-21 Dec-21 10#11Overview Operating Environment Financial Review Guidance Key regulatory and policy changes Q1 MPR retained at 11.5% and the asymmetric corridor remain unchanged at +100/-700bps. ✰ CBN issued regulatory framework for Open Banking The Finance Act 2020 took effect from 1st Jan 2021. ✰ CBN extends regulatory forbearance for restructured loans impacted by Covid-19 by another 12 months. CBN introduced Naira-for-Dollar Scheme, a N5 per USD incentive to retail beneficiaries of international money transfers through only the IMTOS. Q2 NNPC to revoke the licences of non-operating modular refineries and issue new licences to investors CBN extends the deadline for Naira-4-Dollar Scheme until further notice. CBN releases the requirement for Switching & Processing and Mobil Money Licences with the minimum required equity pegged at N2bn. ❖ Senate passed the Petroleum Industry Bill (PIB) Q3 CBN halted FX sale and issuance of new licenses to Bureau De Change (BDC) operators, directs DMBS to sell FX directly to customers. The President signs the Petroleum Industry Bill (PIB) into law. ✰ FG issued $4 billion Senior Unsecured Notes across 3 maturities, attracting over $12.2 billion in total order book. CBN directs banks to publish the details of customers involved in fraudulent FX practices. Q4 CBN launched E-naira: N500m minted and 33 banks have been fully integrated on the platform. CBN grants MTN and Airtel approval in principle to operate a Payment Service Bank (PSB). Nigerian Banks commence the rendition of Basel III returns under the parallel implementation guideline (Basel II & III) as required by the CBN. ◆ The World Bank revised Nigeria's GDP growth rate for 2021 from 1.8% to 2.4%. 11#12Need quick cash loans? Dial *770*08# Fidelity#13Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SCI Summary of Income Statement N'million 2020FY 2021 FY % VAR Gross Earnings 206,204 250,774 21.6% Interest Income Loans 130,476 164,495 26.1% Interest Income Liquid Assets 46,277 39,069 -15.6% Total Interest Income 176,753 203,564 15.2% Interest Expense Deposits -45,223 -74,977 65.8% Interest Expense Borrowings -27,407 -33,710 23.0% Total Interest Expense -72,630 -108,687 49.6% Net Interest Income 104,123 94,877 -8.9% FX Income Digital Income Other Fee Income Net Fee Income 9,976 14,516 45.5% 7,242 10,660 47.2% 6,089 13,409 120.2% 23,307 38,585 65.6% Operating Revenue 127,430 133,463 4.7% Operating Expenses -83,633 -83,458 -0.2% Gain/(Loss) from Fin. Instrument 1,115 -4,904 -539.8% Net Impairment Losses -16,858 -7,035 -58.3% Profit Before Tax 28,054 38,066 35.7% Non-interest revenue (NIR) increased by 60.3% to N47.2bn from N29.5bn in 2020FY Gross earnings increased by 21.6% YoY driven by a combination of 60.3% growth in non-interest revenue (NIR) and 15.2% increase in interest and similar income. Growth in NIR is linked to FX related income and increased customer induced transactions which increased by 57.1% YoY across all service channels a reflection of improved business activities and service quality. Digital banking income now represents 27.6% of net fee income and 22.6% of NIR. Total interest income increased by 15.2% as growth in interest income on loans compensated for the drop in interest income on liquid assets. Improved avg. lending rate and an increase in the loan book led to 26.1% growth in interest income on loans. 13#14Overview Operating Environment Financial Review Guidance Driving sustainable and improving earnings with non-interest revenue Gross Earnings (N'bn) Key drivers of NIR: % Contribution Double-digit growth across key NIR lines 206.2 6% 2021FY 21.6% 23% 5% 250.8 18% 31% 9% 34% 2020FY 9% 25% 10% 9% 23% % Growth 47.2 60.3% 2.9 85 14.5 46 29.5 1.6 4.1 48 ■ Others ■Credit Related Fee Digital Income ■Maint'ne Charge 10.0 10.7 47 2020FY 2021FY ■FX Income ■Trade 2.8 4.3 68 7.2 2020FY 2021 FY 2.6 10.7 101 5.3 Interest Income 2020FY 176.8 15.2% 203.6 2021FY Trade FX Income Maint'ne Charge Non-interest Revenue 29.5 60.3% 47.2 I Digital Income Credit Related Others 14#15Overview Operating Environment Financial Review Guidance Net Interest Margin Analysis 6.3% Avg. Yield on Earnings Assets 10.7% 4.7% 2020FY 10.1% NIM dropped to 4.7% from 6.3% in 2020FY due to a combination of lower yields on earning assets and increased funding cost. Drop in avg. yield on earning assets was led by a decline in yields on liquid assets to 7.4% from 10.9% in 2020FY. 2021FY Avg. Funding Cost 2020FY 2021FY 3.6% 4.2% 2020FY 2021FY However, avg. lending rate inched up by 40bps to 11.0% from 10.6%, following the repricing of select risk assets. The increase in avg. funding cost was caused by 90bps increase in avg. cost of deposits to 4.0% from 3.1% in 2020FY. However, avg. borrowing cost dropped by 30bps on account of increased intervention funding and the refinancing of Fidelity N30bn Junior Notes due 2022 which shaved off N1.4bn p.a. in interest expenses. 15#16Overview Operating Environment Financial Review Guidance Consistent drop in OPEX translates to improved CIR currently at 64.9% (2020FY: 65.1%) OPEX dropped by 0.2% YoY Key drivers of OPEX: % Contributions CIR N'million 2020FY 2021FY % Growth Staff Cost 25,367 23,470 -7.5% Regulatory Cost 17,399 22,740 30.7% 65.1% 15.5% Depreciation 6,207 7,174 15.6% 28.1% 1.9% 64.9% Consultant/Outsourcing 9,594 5,824 -39.3% 8.6% Communication 5,292 6,119 15.6% 7.3% 7.0% Repairs & Maintenance 2,786 3,604 29.4% 4.3% Security 1,378 1,568 13.8% 27.2% Energy 1,225 1,558 27.2% Technology 3,477 1,136 -67.3% Others 10,908 10,265 -5.9% 83,633 83,458 -0.2% Others Exp. Depreciation ■Repairs & Maint. ■Communication ■Security ■Cons. & Outsource ■Regulatory Cost ■Staff 2020FY 2021FY Process improvement and cost optimization led to 0.2% YoY drop in OPEX. However, regulatory cost remains the single largest absolute cost driver - it increased by 30.7% YoY and represents 27.2% of total OPEX. Excluding regulatory cost, OPEX would have declined by 8.3% (N5.5bn) while CIR dropped to 60.6%. Staff cost, depreciation, and regulatory costs constitute 64.0% of total OPEX in 2021 FY from 58.6% in 2020FY. 16#17Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SFP Statement of Financial Position N'million 2020FY 2021 FY VAR % VAR Total Assets 2,758,148 3,289,479 531,331 Earning Assets 1,828,807 2,217,080 388,273 Bank Placements 51,799 12,000 (39,799) Treasury Bills 264,032 330,441 66,409 19.3% 21.2% -76.8% 25.2% Bonds 186,870 216,227 29,357 15.7% Growth in total assets is skewed towards earning assets which grew by 21.1% compared to 15.4% increase in non-earning assets. Total FCY assets is $2.3bn with $743m (32.9%) in cash & short-term funds, and investment in securities. Net Loans 1,326,106 1,658,412 332,306 25.1% Non-Earning Assets 929,341 1,072,399 143,058 15.4% Cash 44,751 42,755 (1,996) -4.5% Breakdown of FCY Assets Restricted Bal. with CBN 540,129 686,097 145,968 27.0% Bal. with other Banks 231,943 164,497 (67,446) -29.1% Fixed Assets 38,446 39,440 994 2.6% All Other Assets 74,072 139,609 65,537 88.5% Interest Bearing Liabilities 2,268,094 2,870,711 602,617 26.6% Customer Deposits 1,699,026 2,024,806 325,780 19.2% Other Borrowings 99,055 88,974 (10,081) -10.2% 0.2% 26.9% > $2.3bn 6.0% 66.9% On-lending Facilities Debt Securities All Other Liabilities Equity 308,097 377,492 69,395 22.5% 161,916 379,439 217,523 134.3% 216,521 120,999 (95,522) -44.1% ■ Others 273,533 297,769 24,236 8.9% Investment Securities Cash & Short Term Funds Loans & Advances 17#18Overview Operating Environment Financial Review Guidance Customer deposits is the largest funding source at 63.9% of total funding base. N'million 2020FY 2021FY VAR % VAR Demand Deposits 883,300 1,031,092 147,792 16.7% Savings Deposits 424,384 477,174 52,790 12.4% Tenor Deposits 391,342 516,540 125,198 32.0% Other Borrowings 99,055 88,974 (10,082) -10.2% On-Lending 308,097 377,492 69,395 22.5% Debt Securities 161,916 379,439 217,523 134.3% Equity 273,533 297,769 24,236 Total 2,541,627 3,168,480 626,852 8.9% 24.7% 9% 2021FY 12% 11% 33% 6% 35% 12% 2020FY 12% 4% 3% 15% 17% 16% 15% Demand ■Savings ■Time ■Other Borrowings ■ On-lending ■Debt Equity Customer deposits increased across all deposit types by 19.2% YTD to N2,024.8bn from N1,699.2bn in 2020FY, in line with our 2021 FY guidance. ➤ FCY deposits increased 26.4% ($196.4m) to $941.3m from $744.8m in 2020FY, after adjusting for FX rate change. LCY deposits increased by 16.0% to N1,625.6bn. Low cost deposits grew by 15.3% and was responsible for 61.6% of the absolute growth in total customer deposits. ➤ Savings deposit grew by 12.4% YTD, making it the 9th consecutive double-digit growth in savings deposits. ➤ The combination of 10-yr N41.2bn Junior Unsecured Notes issued in Jan 2021 @ 8.5% and 5-yr $400m Senior Unsecured Notes issued in Oct 2021 @ 7.625%, led to the 134.3% increase in debt securities. 18#19Overview Operating Environment Financial Review Guidance Low cost deposits accounted for 74.5% of total customer deposits. Customer Deposits (N'bn) Customer Deposits by Type 17.5% 18.3% 18.5% 17.8% 19.7% 1,699.0 298.2 1,751.3 321.2 1,980.2 367.1 1,973.0 350.4 2,024.8 399.2 1,400.8 1,430.1 1,613.1 1,622.6 1,625.6 Time Deposits, 25.5% Savings Desposits, 2020FY Q1 2021 H1 2021 9M 2021 2021FY 23.6% ■LCY Deposits ■FCY Deposits ■% FCY Deposits Savings Deposits (N'bn) 25.0% 25.2% 22.1% Demand Deposits, 50.9% Low Cost Deposits Vs. Liquidity Ratio 21.9% 23.6% 77.0% 78.8% 74.9% 73.2% 74.5% 1,508.3 477.2 37.8% 441.6 437.9 431.5 424.4 33.9% 1,379.3 1,484.0 1,444.1 40.4% 33.3% 34.5% 1,307.7 2020FY Q1 2021 H1 2021 ■Savings Deposits 9M 2021 2021FY 2020FY Q1 2021 H1 2021 9M 2021 Low Cost Deposits % LCD ■% Share of Total Deposits 2021FY -Liquidity Ratio 19#20Overview Operating Environment Financial Review Guidance Loans & Advances Analysis N'billion Net Loans & Advance 1,535.4 1,612.9 1,426.3 1,326.1 14.9 10.1 30.4 T8.7 587.3 1,658.4 35.9 603.9 579.0 556.2 526.3 769.4 859.9 941.5 1,006.9 1,018.6 2020FY Q1 2021 ■LCY Loans H1 2021 FCY Loans 9M 2021 2021 FY ■Devaluation Impact LCY Loans Vs. FCY Loans 42.0% 39.7% 38.7% 37.6% 38.6% 58.0% 60.3% 61.3% 62.4% 61.4% 2020FY Q1 2021 H1 2021 9M 2021 2021FY ■LCY Loans ■FCY Loans Net loans & advances increased by 25.1% YTD to N1,658.4bn, with 40.0% of the loan book within the 12 months or less maturity portfolio. On-lending facilities and the impact of foreign currency rate change was responsible for 31.7% of the absolute growth in loan book. ➤ 27.8% (N69.4bn) of the growth in the LCY loan book were created with on-lending facilities at concessionary rates. ➤ FCY loans now constitute about 38.6% of the net loan book from 42.0% in 2020FY. > Loans to funding ratio came in at 60.4% compared to 61.4% in 2020FY but stood at 62.9% after weighting all permissible loans: Mortgage Loans | SME Loans | Consumer loans etc. Sufficient headroom exists for risk asset growth. 20 20#21Overview Operating Environment Financial Review Guidance Improved asset quality as the economy recover led to a drop in impairment charge 2021FY Impairment Charge Impairment Charge N'billion (9.2) (5.7) 7.9 2021FY (7.0) (7.0) 2020FY Stage 1 Stage 2 Stage 3 Total N'billion 2020FY Impairment Charge (16.9) Total Impairment Allowance by Currency -58.3% 2020FY 2021FY VAR % VAR (13.0) (16.9) FCY 16.7 17.3 0.5 3.2% (2.1) (1.7) NGN 50.8 56.9 6.1 11.9% Stage 1 Stage 2 TOTAL 67.5 74.1 Stage 3 6.6 9.8% Total 21 21#22Overview Operating Environment Financial Review Guidance Diversified loan book with focus on asset quality Gross Loans by Sector N'million 2020FY Q1 2021 H1 2021 9M 2021 2021FY VAR % VAR Communication 32,217 29,776 31,170 30,586 29,535 (1,052) -3.4% Oil and Gas - Upstream Downstream Services 315,155 374,558 411,521 421,975 452,848 30,873 7.3% 157,939 159,777 167,486 167,940 177,409 9,469 5.6% 71,448 99,096 107,664 110,236 102,770 (7,466) -6.8% 85,767 115,685 136,372 143,799 172,670 28,870 20.1% Power 134,984 137,672 144,491 143,656 149,675 6,019 4.2% Manufacturing 241,835 207,586 218,433 237,258 231,955 (5,303) -2.2% General Commerce 124,925 127,866 142,384 156,001 153,795 (2,207) -1.4% Transport 159,080 178,868 199,944 228,115 226,727 (1,388) -0.6% Consumer (Individuals) 53,422 54,521 59,794 62,576 66,658 4,083 6.5% Government 157,449 187,313 184,616 179,485 175,365 (4,120) -2.3% Construction 44,544 64,309 75,930 59,201 58,971 (230) -0.4% Agriculture 46,167 43,262 47,491 60,288 71,759 11,471 19.0% Real Estate Education Finance & Insurance Others 28,110 29,074 29,240 42,432 43,330 898 2.1% 8,404 6,883 5,411 8,254 8,075 (179) -2.2% 3,668 2,028 2,295 2,492 4,898 2,406 96.5% 43,665 51,387 53,404 52,005 58,954 6,949 13.4% Total 1,393,624 1,495,102 1,606,125 1,684,325 1,732,545 48,220 2.9% 22 22#23Overview Operating Environment Financial Review Guidance Sectoral contributions remain below internal guidance and portfolio limit of 20.0% Gross Loans by Sector % Contribution (2021FY) N'million 2020FY 2021FY VAR % VAR Government; 10.1% Oil & Gas: Service; 10.0% Communication 32,217 29,535 (2,682) -8.3% Consumer; 3.8% Oil and Gas 315,155 452,848 137,694 43.7% Oil & Gas: - Upstream 157,939 177,409 19,469 12.3% Downstream; 5.9% Downstream Services 71,448 102,770 31,322 43.8% 85,767 172,670 86,903 101.3% Transport; 13.1% Power 134,984 149,675 14,691 10.9% Gen. Commerce; 8.9% Manufacturing 241,835 231,955 (9,880) -4.1% Construction; 3.4% Agriculture; 4.1% Others; 6.7% Communication; 1.7% Oil & Gas: Upstream; 10.2% Power; 8.6% Manufacturing; 13.4% General Commerce 124,925 153,795 28,870 23.1% Transport 159,080 226,727 67,647 42.5% Consumer (Individuals) 53,422 66,658 13,236 24.8% Government 157,449 175,365 17,916 11.4% Government; 11.3% % Contribution (2020FY) Oil & Gas: Service; 6.2% Construction 44,544 58,971 14,427 32.4% Consumer; 3.8% Construction; 3.2% Agriculture 46,167 71,759 25,592 55.4% Oil & Gas: Real Estate 28,110 43,330 15,220 54.1% Downstream; 5.1% Education 8,404 8,075 (329) -3.9% Transport; 11.4% Finance & Insurance 3,668 4,898 1,230 33.5% Gen. Commerce; 9.0% Others 43,665 58,954 15,289 35.0% Total 1,393,624 1,732,545 338,921 24.3% Manufacturing; 17.4% Agriculture; 3.3% Others; 6.0% Communication; 2.3% Oil & Gas: Upstream; 11.3% Power; 9.7% 23#24Overview Operating Environment Financial Review Guidance Adequate coverage for Stage 3 Loans at 57.2%. Gross Loan Book by Stage Stage 1 Stage 2 Communication 14,666 13,886 Stage 3 982 Total Stage 1 Stage 2 Stage 3 Total 29,535 49.7% 47.0% 3.3% 1.7% Oil and Gas 321,552 127,093 4,203 452,848 71.0% 28.1% 0.9% 26.1% - Oil & Gas Upstream 97,531 79,878 177,409 55.0% 45.0% 0.0% 10.2% - Oil & Gas Downstream 82,591 17,373 2,805 102,770 80.4% 16.9% 2.7% 5.9% - Oil & Gas Services 141,430 29,842 1,398 172,670 81.9% 17.3% 0.8% 10.0% Power 3,871 145,804 0 149,675 2.6% 97.4% 0.0% 8.6% Manufacturing 221,210 7,585 3,160 231,955 95.4% 3.3% 1.4% 13.4% General Commerce 137,822 9,274 6,698 153,795 89.6% 6.0% 4.4% 8.9% Transport 210,547 5,794 10,387 226,727 92.9% 2.6% 4.6% 13.1% Consumer (Individuals) 58,743 1,390 6,525 66,658 88.1% 2.1% 9.8% 3.8% Government 175,349 0 16 175,365 100.0% 0.0% 0.0% 10.1% Construction 54,970 3,684 317 58,971 93.2% 6.2% 0.5% 3.4% Agriculture 62,866 4,567 4,326 71,759 87.6% 6.4% 6.0% 4.1% Real Estate 43,160 170 43,330 99.6% 0.0% 0.4% 2.5% Education 7,459 609 8,075 92.4% 0.1% 7.5% 0.5% Finance and Insurance 4,231 1 666 4,898 86.4% 0.0% 13.6% 0.3% Others 46,125 716 12,112 58,954 78.2% 1.2% 20.5% 3.4% Total % Share of Total Coverage Ratio 1,362,572 319,799 50,174 1,732,545 78.6% 18.5% 2.9% 100.0% 78.6% 1.4% 18.5% 8.4% 2.9% 57.2% 100.0% 4.3% 24 24#25Overview Operating Environment Financial Review Guidance Non-performing loans (NPL) analysis NPL Analysis 2020FY 2021FY VAR % VAR 2020FY 2021FY N'million N'million N'million % NPL Ratio NPL Ratio Communication Oil and Gas 1,932 982 (950) -49.2% 6.0% 3.3% 4,469 4,203 (266) -6.0% 1.4% 0.9% - Oil & Gas Upstream 0 0 0 0.0% 0.0% 0.0% - Oil & Gas Downstream 3,559 2,805 (753) -21.2% 5.0% 2.7% - Oil & Gas Services 911 1,398 487 53.5% 1.1% 0.8% Power 0 0 0 56.6% 0.0% 0.0% Manufacturing 3,290 3,160 (130) -4.0% 1.4% 1.4% General Commerce 6,221 6,698 477 7.7% 5.0% 4.4% Transport -37.3% 10.4% 4.6% 16,562 10,387 (6,175) Consumer (Individuals) 3,636 6,525 2,889 79.5% 6.8% 9.8% Government 30 16 (14) -45.5% 0.0% 0.0% Construction 797 317 (480) -60.2% 1.8% 0.5% Agriculture 3,877 4,326 449 11.6% 8.4% 6.0% Real Estate 36 170 134 367.2% 0.1% 0.4% Education 566 609 43 7.6% 6.7% 7.5% Finance and Insurance 598 666 68 11.4% 16.3% 13.6% Others 11,035 12,112 1,078 9.8% 25.3% 20.5% Total 53,050 50,174 (2,876) -5.4% 3.8% 2.9% 25#26Overview 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. 2021FY) 0% 0% 3.8% 2021FY 5% 3.6% 2.8% 21% 2.8% 2.9% 4% 36% 30% 31% ■Communication: 4% Vs 2% ■Oil & Gas: Upstream: 0% Vs 0% Transport: 31% Vs 21% ■Power: 0% Vs 0% ■Gen. Commerce: 12% vs 13% ■Govt.: 0% Vs 0% 2020FY 0% ■Oil & Gas: Downstream: 7% Vs 6% 1% 13% 0% ■Consumer: 7% Vs 13% 12% 2020FY Q1 2021 H1 2021 9M 2021 2021 FY 6% 5% 3% 13% 0% 0% ■Oil & Gas: Service: 2% Vs 3% ■Manufacturing: 6% Vs 6% ■Construction: 2% Vs 1% Others: 30% Vs 36% N'billion NPL Coverage Ratio 53.1 54.3 155.4% 45.5 152.2% 46.9 50.2 1.4% 147.8% 139.3% 138.5% Cost of Risk 0.5% 0.4% 0.3% 0.2% 2020FY Q1 2021 H1 2021 9M 2021 2021FY 2020FY Q1 2021 H1 2021 9M 2021 2021FY Non-performing Loans Coverage Ratio 26 26#27Overview Operating Environment Financial Review Guidance CAR stood at 20.1%, well above the regulatory minimum requirement of 15.0% Capital Adequacy Ratio Computation - Basel II Capital Adequacy Ratio Trend N'billion N'billion 2020FY 2021FY VAR 297.8 273.5 264.4 273.4 282.7 Tier 1 Capital 224.3 252.5 28.3 20.1% 18.2% Regulatory Adjustment (20.2) (21.1) 18.2% 18.4% 18.8% 0.9 Adjusted Tier 1 Capital 204.1 231.5 27.4 15.0% 15.0% 15.0% 15.0% 15.0% Tier 2 Capital 39.6 75.6 36.0 2020FY Q1 2021 Total Qualified Capital 243.7 307.1 63.4 Total Equity H1 2021 Fidelity CAR 9M 2021 2021FY Regulatory Minimum Credit Risk Market Risk Operational Risk Risk Weighted Assets 1,048.3 1,230.4 182.0 87.6 86.4 (1.3) 204.3 210.0 5.7 1,340.2 1,526.7 186.5 Capital Adequacy Ratio Tier 1 15.2% 15.2% Tier 2 3.0% 5.0% Overall CAR 18.2% 20.1% Capitalization of profit led to the increase in CAR to 20.1% from 18.8% in 9M 2021 (2020FY: 18.2%). Excluding the regulatory adjustment, CAR would have come in at 21.5%. Only our 10-Yr N41.2bn Junior Notes due 2031 qualified as Tier II Capital and included in the computation of CAR. 27 22#28*770# The Code You Should Never Forget Dial Now To Get Started Pay Bills Buy Airtime Transfer and more CINEMA CINEM FOLLOW US in Ο You Tube www.fidelitybank.ng MTM TAXI Fidelity#29Overview Operating Environment Financial Review Guidance Actual Vs. Target PBT Loan Growth 2021FY Actual 2021FY Target Comment 2022FY Target N38.1bn N35.2bn Achieved N48.0bn 25.1% 10.0% 15.0% Achieved 10.0% 15.0% Deposit Growth 19.2% 15.0% 20.0% Achieved 15.0% 20.0% Net Interest Margin 4.7% 6.0% - 6.5% Not Achieved 5.0% - 6.0% Cost to Income Ratio 64.9% Below 65.0% Achieved Below 65.0% - ROAE Post Tax 12.5% 12.2% Achieved 14.7% Cost of Risk 0.5% 1.0% - 1.2% Achieved 1.0% NPL Ratio 2.9% Below 5.0% Achieved Below 5.0% Tax Rate 6.5% - 10.0% 15.0% Achieved - 15.0% 20.0% Proposed Dividend 35 kobo 25 -40% (of PAT) Achieved 25-40% (of PAT) Please note: final dividend per share is subject to regulatory and shareholders' approval. 29 29#30Fidelity Bank Plc. 2 Kofo Abayomi Street, Victoria Island, Lagos, Nigeria +234 (01) 4480853 [email protected] www.fidelitybank.ng