#1Fidelity Bank Investor Presentation Audited Financial Results for the 6 months ended June 30, 2021 Fidelity#2Disclaimer 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 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. Update on 2021 FY Target 13 28 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 Rated and In compliance with the NGX Corporate Governance Rating System (CGRS) OGRS Better For Business RATED > 250 Business Offices NC NW 13% 7% 200 > 6m+ Business 39% SW > 250 Offices 19% Customer Accounts SS 18% NE SE > 3,000 Professional Staff NC >135 15% NW Call Centre Agents 5% Deposit Spread 4% >N2trn 52% SW SS > 15k 13% 2% Banking Agents SE NE ■" Agusto&Co. Research, Credit Ratings, Credit Risk Management A Fitch Ratings B-/Stable/B Listings: NINGX FMDQ OTC Securities Exchange GCR S&P Global B-/Stable/B A- Irish Stock Exchange 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 6.2% N112.3bn Customer Deposits CAR 16.5% 60bps 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 Assets ROAE 9.8% ▲ 12.8% 370bps N42.2bn N3,110.8bn 14.2% PBT: ▲ 72.4% to N20.6bn 7#8Overview Operating Environment Financial Review Guidance Deepening strong growth in NII and customer reach through Digital Banking Mobile/Online Customers # 10.9% YTD > 3.3m+ 3,048 Debit Cardholders # 8.8% YTD >2.5m+ 832 ATM # 0.4% YTD POS # > 33.9k NIP Value (N'bn) 92.2% 5,859 Mkt Share H1 2020 H1 2021 Mobile/Online Transactions #'Mn 40.7 5% 75.0% 71.2 % of 2020FY -79% E-Banking Transaction #'Mn 75.4 52.8% 115.2 % of 2020FY -71% H1 2020 H1 2021 2020FY: 161m+ % E-Banking Income to NIR 20.4% 140.7% YTD H1 2020 H1 2021 2020FY: 90m+ NIR excludes gains/(losses) from financial instruments 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 grew strong in Q2 with 5.0% growth in Real GDP compared to 0.51% in Q1 2021. The growth reflects the gradual recovery of major sectors affected by the pandemic. Transportation and Trade were among the top sectors that drove the growth in Q2. Headline inflation rate dropped to 17.8% in June from 17.9% in May 2021. This represents the 3rd consecutive decline in inflation rate since March 2021. Both food inflation and core inflation dropped in June to 21.8% compared to 22.3% and to 13.1% from 13.2% in May 2021 respectively. Trading on Bonny Light in June closed at $78.0pb, the highest closing daily price since Jan 2019, while the daily crude oil production averaged 1.6 million bpd. Currently, Brent Crude is trading at $73.6pb while Bonny Light is trading at $73.3pb at spot price. External reserves stood at $33.3bn at the end of Q2 2021, compared to $34.8bn in Q1 2021. Real GDP Growth 5.0% 0.1% 0.5% Q2 '20 -6.1% Q4'20 Q2'21 -3.6% Headline Inflation Rate 17.8 17,3 15.8 14.2 18.1 12.6 13.2 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 Bonny Light ($ per barrel) 78.0 66.1 51.3 42.5 45.3 66.8 36.4 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Apr-21 Jun-21 10#11Overview Operating Environment Financial Review Guidance Key regulatory and policy changes MPR retained at 11.5% and the asymmetric corridor remain unchanged at +100/-700bps. Jan The Finance Act 2020 took effect from January 1, 2021. Feb 2021 appropriation bill signed off with an increase in aggregate revenue and planned expenditure. Mar CBN introduced Naira-for-Dollar Scheme, a N5 per USD incentive to retail beneficiaries of international money transfers through only the IMTOS. Headline Inflation hit 18.17% in March 2021 from 17.33% in Feb 2021, making it the 19th consecutive M-o-M increase and the highest inflation figure since Jan 2017 May ✰ CBN extends the deadline for Naira-4-Dollar Scheme until further notice. The N5 per USD incentive for retail beneficiaries was meant to end on May 8, 2021. ✰ CBN releases the requirement for Switching & Processing and Mobil Money Licences with the minimum required equity pegged at N2bn. Apr Jun ✰ CBN issued regulatory framework for Open Banking ❖ SEC released general rules for Collective Investment Schemes. CBN extends regulatory forbearance for restructured loans impacted by Covid-19 by another 12 months. FG plans to cut personnel cost and merge MDAs to reduce government spending. ◆ Guideline for SLF and TRF Repo released. NNPC to revoke the licences of non-operating modular refineries and issue new licences to investors The World Bank revised its estimated for the Nigeria's 2021 GDP growth rate from 1.1% to 1.8% before it will edge up to 2.1% in 2022. ✰ FG suspends the operation of Twitter in Nigeria ◆ Senate passed the Petroleum Industry Bill (PIB) 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 H1 2020 H1 2021 % VAR Gross Earnings 105,755 112,304 6.2% Interest Income Loans 63,713 74,850 17.5% Interest Income Liquid Assets 23,909 14,272 -40.3% Total Interest Income 87,622 89,121 1.7% Interest Expense Deposits -26,268 -24,345 -7.3% Interest Expense Borrowings -13,034 -14,479 11.1% Total Interest Expense -39,302 -38,824 -1.2% Net Interest Income 48,320 50,297 4.1% FX Income Digital Income Other Fee Income Net Fee Income 8,319 9,720 16.8% 3,170 4,737 49.4% 3,880 5,416 39.6% 15,369 19,873 29.3% Operating Revenue 63,689 70,171 10.2% Operating Expenses -46,841 -42,247 -9.8% Gain/(Loss) from Fin. Instrument 2,956 -4,990 -268.8% Net Impairment Losses -7,841 -2,305 -70.6% Profit Before Tax 11,963 20,628 72.4% Gross earnings increased by 6.2% YoY as the gradual recovery of business activities translated to an increase in non-interest revenue. ➤ Total customer induced transactions across all service channels increased by 58.0% YoY and 21.2% QOQ. Digital banking income now represents 23.8% (H1 2020: 20.6%) of Net Fee Income and 20.4% (H1 2020: 17.5%) of NIR. Total interest income increased by 1.7% YoY, though interest income on liquid assets dropped by 40.3% YoY caused by a combination of: N52bn YTD drop in investments as we optimize our balance sheet due to lower market yields. Maturing investments in securities carried at lower yields. 13#14Overview Operating Environment Financial Review Guidance Driving sustainable and improving earnings with non-interest income Gross Earnings N'billion Double-digit growth across key NIR Lines 5% H1 2021 18% 4% 112.3 6.2% 18% 7% 8% % Growth 27.8% 23.2 1.0 34 42% H1 2020 46% 17% 7% 20% 105.8 18.1 0.8 9.7 17 8% 8.3 ■ Others ■Credit Related Fee 1.9 51 Digital Income ■Maint'ne Charge H1 2020 H1 2021 ■FX Income ■Trade 1.2 4.7 49 49 3.2 1.7 1.4 H1 2020 H1 2021 3.3 4.1 22 23 27 Interest Income 87.6 1.7% 89.1 H1 2020 H1 2021 Trade FX Income Maint'ne Charge Non-interest Revenue 18.1 27.8% 23.2 I Digital Income Credit Related Others 14#15Overview Operating Environment Financial Review Guidance Net Interest Margin Analysis Avg. Yield on Earnings Assets 11.5% 9.4% 6.4% 5.3% H1 2020 H1 2021 Avg. Funding Cost H1 2020 H1 2021 4.3% 3.2% H1 2020 H1 2021 NIM dropped to 5.3% from 6.4% in H1 2020 (2020FY: 6.3%) as the decline in average yield on earnings assets surpassed improved average funding cost in H1 2021. Drop in average yield on earning assets was due to a combination of lower yields on liquid assets and marginal drop in average lending rates. Avg. lending rate is gradually ticking up which now stood at 11.5% in Q2 from 10.0% in Q1. The decline in avg. funding cost was caused by both improved avg. cost of deposits and the refinancing of 5yr N30bn Tier II Bonds. ➤ Avg. cost of deposits dropped by 135bps to 2.7% while the avg. borrowing cost declined by 29bps to 4.9%. 15#16Overview 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 N'billion Key drivers of OPEX: % Contributions CIR 9.8% 46.8 12.2 0.6 70.3% 20.7% 26.3% 64.8% 1.9% 8.2% 0.8%7.0% 33.5% 42.2 1.7% 11.1 0.7 14.6 14.1 1.8 0.3 Others Exp. ■Security 2.6 Depreciation ■Cons. & Outsource 3.0 3.0 0.7 0.8 3.5 Technology Cost Energy ■Regulatory Cost ■Staff 11.4 8.7 H1 2020 Staff Regulatory Cost ■Consultancy & Outsourcing Depreciation H1 2021 Energy Technology Cost ■Security ■Others Exp. H1 2020 H1 2021 We recorded N7.2bn drop in key expense lines as we deepen our operational efficiency through process improvement and cost optimization. Regulatory charges & staff cost are the largest cost lines, representing 60% of OPEX. Harnessing the benefits of remote working has continued to reflect on our overall operating cost. 16#17Overview Operating Environment Financial Review Guidance Financial Performance Highlights - SFP Statement of Financial Position N'million 2020FY H1 2021 VAR % VAR Total Assets 2,758,148 3,110,835 352,687 12.8% Earning Assets 1,828,807 1,986,144 157,337 Bank Placements 51,799 15,978 (35,821) 8.6% -69.2% Treasury Bills 264,032 265,056 1,024 0.4% Bonds 186,870 169,674 (17,196) -9.2% Net Loans 1,326,106 1,535,437 209,331 15.8% Total assets grew by 12.8% to N3,110.8bn ($7.6bn) from N2,758.1bn in 2020FY. Total FCY assets is now $2.1bn compared to total FCY liabilities of $1.8bn, translating to total NOP of $305m ➤ $662m in cash, short-terms & Investments Non-Earning Assets 929,341 1,124,690 195,349 21.0% Cash 44,751 81,633 36,882 82.4% Breakdown of FCY Assets Cash Reserve 432,741 550,654 117,913 27.2% Bal. with other Banks 339,331 324,111 (15,220) -4.5% Fixed Assets 38,446 38,361 (85) -0.2% All Other Assets 74,072 129,931 55,859 75.4% Interest Bearing Liabilities 2,268,094 2,615,059 346,965 15.3% 0.1% 25.1% > $2.1bn 6.2% Customer Deposits 1,699,026 1,980,187 281,161 16.5% Other Borrowings 99,055 105,450 6,395 6.5% 68.6% On-lending Facilities Debt Securities All Other Liabilities Equity 308,097 320,797 12,700 4.1% 161,916 208,624 46,708 28.8% 216,521 222,404 5,883 2.7% Others 273,533 273,372 (161) -0.1% Investment Securities I Cash & Short Term Funds ■Loans & Advances 17#18Overview Operating Environment Financial Review Guidance Increased customer deposits is changing our funding structure N'million 2020FY H1 2021 VAR % VAR Demand Deposits 883,300 1,046,064 162,764 18.4% Savings Deposits 424,384 437,915 13,531 3.2% Tenor Deposits 391,342 496,209 104,867 26.8% Other Borrowings 99,055 105,450 6,395 6.5% On-Lending 308,097 320,797 12,700 4.1% Debt Securities 161,916 208,624 46,708 28.8% Equity 273,533 273,372 (161) -0.1% Total 2,541,627 2,888,431 346,804 13.6% H1 2021 10% Demand 7% 11% ■Savings 6% 36% 35% ■Time 12% 2020FY 11% 4% 4% 15% 17% 17% 15% ■Other Borrowings ■ On-lending ■Debt Equity Customer deposits constitute 68.6% of total funding base from 66.8% in 2020FY. Customer deposits increased across all deposit types (including FX deposits: 23.1% YTD) by 16.5% YTD to N1.980.2bn from N1,699.2bn in 2020FY. Actual growth was 16.0% while FX rate adjustment was responsible for only 0.5% of the total growth. ➤ Low cost deposits grew by 13.5% and was responsible for 75.5% of the absolute growth in total customer deposits. ➤ Savings deposit grew by 3.2% YTD: growth is now pressured by relatively high yields in the market. 10yrs N41.2bn Tier II Bonds issued in Jan 2021 @ 8.5% led to the 28.8% YTD increase in debt securities. 18#19Overview 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% 1,405.9 300.8 1,498.4 317.8 1,699.0 298.2 1,751.3 321.2 1,980.2 367.1 Time Deposits, 25.1% Demand Deposits, 52.8% 1,400.8 1,430.1 1,613.1 1,105.2 1,180.6 H1 2020 9M 2020 2020FY Q1 2021 H1 2021 Savings Desposits, 22.1% ■LCY Deposits ■FCY Deposits ■% FCY Deposits Savings Deposits Low Cost Deposits Vs. Liquidity Ratio 25.9% 25.7% 25.0% 25.2% 22.1% 76.1% 76.7% 77.0% 78.8% 74.9% 1,484.0 424.4 441.6 437.9 363.9 385.1 1,070.3 1,148.8 1,307.7 37.8% 1,379.3 35.0% 33.9% 33.3% 32.1% H1 2020 9M 2020 2020FY Q1 2021 H1 2021 Hồ 2020 9M 2020 2020FY Q1 2021 H1 2021 ■Savings Deposits ■% Share of Total Deposits Low Cost Deposits % LCD -Liquidity Ratio 19#20Overview Operating Environment Financial Review Guidance Loans & Advances Analysis N'billion Net Loans & Advance 1,426.3 1,272.5 1,326.1 1,535.4 14.9 1,209.1 10.1 30.5 49.5 579.0 31.5 556.2 526.8 507.2 521.4 656.2 715.2 769.4 859.9 941.5 H1 2020 9M 2020 ■LCY Loans 2020FY ■FCY Loans Q1 2021 H1 2021 ■Devaluation Impact LCY Loans Vs. FCY Loans 45.7% 43.8% 42.0% 39.7% 38.7% 54.3% 56.2% 58.0% 60.3% 61.3% H1 2020 9M 2020 2020FY Q1 2021 H1 2021 ■LCY Loans ■FCY Loans Net loans & advances increased by 15.8% YTD to N1,535.4bn, with 30.7% of the loan book within the 12 months or less maturity portfolio. Actual real loan growth was 14.7% while the adjustment in exchange rate from N400.3/$ to N410.6/$ accounted for 1.1% (N14.9bn) growth in the loan book. ➤ FCY loans now constitute about 38.7% of the net loan book from 42.0% in 2020FY. ➤ 7.4% (N12.7bn) of the growth in the LCY loan book were created with on-lending and intervention facilities at concessionary rates. > Loans to funding ratio remained unchanged at 61.4% (2020FY: 61.4%) but stood at 65.1% 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 H1 2021 Impairment Charge Impairment Charge (7,537) 5,604 H1 2021 (2,305) (2,305) (372) H1 2020 Stage 1 Stage 2 Stage 3 Total H1 2020 Impairment Charge (7,841) Total Impairment Allowance by Currency - 70.6% 2020FY H1 2021 VAR % VAR (11,562) (7,841) FCY 16,716 16,023 -693 -4.14% ( 428 ) NGN 50,803 54,665 3,862 7.60% Stage 1 Stage 2 Stage 3 Total TOTAL 67,518 70,688 3,170 4.69% 4,149 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 Government; 11.5% VAR % VAR Consumer; 3.7% Communication 32,217 29,776 31,170 1,394 4.7% Oil and Gas 315,155 374,558 411,521 36,963 9.9% Oil & Gas: - Upstream 157,939 159,777 167,486 7,708 4.8% Downstream; 6.7% Downstream 71,448 99,096 107,664 8,568 8.6% Transport; 12.4% Services 85,767 115,685 136,372 20,687 17.9% Gen. Commerce; 8.9% Power 134,984 137,672 144,491 6,819 5.0% % Contribution (H1 2021) Oil & Gas: Service; 8.5% Construction; 4.7% Agriculture; 3.0% Others; 5.6% Communication; 1.9% Oil & Gas: Upstream; 10.4% Manufacturing; 13.6% Power; 9.0% Manufacturing 241,835 207,586 218,433 10,847 5.2% General Commerce 124,925 127,866 142,384 14,519 11.4% Transport 159,080 178,868 199,944 21,076 11.8% Consumer (Individuals) 53,422 54,521 59,794 5,274 9.7% Government 157,449 187,313 184,616 (2,697) -1.4% Government; 11.3% Construction 44,544 64,309 75,930 11,621 18.1% Consumer; 3.8% Agriculture 46,167 43,262 47,491 4,229 9.8% Oil & Gas: Real Estate 28,110 29,074 29,240 166 0.6% Downstream; 5.1% Education 8,404 6,883 5,411 (1,473) -21.4% Transport; 11.4% Finance & Insurance 3,668 2,028 2,295 267 13.2% Gen. Commerce; 9.0% Others 43,665 51,387 Total 1,393,624 1,495,102 53,404 1,606,125 2,017 3.9% 111,023 7.4% Manufacturing; 17.4% % Contribution (2020FY) Oil & Gas: Service; 6.2% Construction; 3.2% Agriculture; 3.3% Others; 6.0% Communication; 2.3% Oil & Gas: Upstream; 11.3% Power; 9.7% 22 22#23Overview 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% 34.2% 1.0% 25.6% - Oil & Gas Upstream 64,059 103,427 167,486 38.2% 61.8% 0.0% 10.4% - Oil & Gas Downstream 92,516 12,312 2,836 107,664 85.9% 11.4% 2.6% 6.7% - Oil & Gas Services 110,155 24,923 1,293 136,372 80.8% 18.3% 0.9% 8.5% Power 3,109 141,383 0 144,491 2.2% 97.8% 0.0% 9.0% Manufacturing 214,921 438 3,074 218,433 98.4% 0.2% 1.4% 13.6% General Commerce 137,584 92 4,708 142,384 96.6% 0.1% 3.3% 8.9% Transport 154,528 35,982 9,434 199,944 77.3% 18.0% 4.7% 12.4% Consumer (Individuals) 55,003 1,736 3,055 59,794 92.0% 2.9% 5.1% 3.7% Government 182,459 2,135 23 184,616 98.8% 1.2% 0.0% 11.5% Construction 74,488 1 1,441 75,930 98.1% 0.0% 1.9% 4.7% Agriculture 42,525 0 4,966 47,491 89.5% 0.0% 10.5% 3.0% Real Estate 6,209 22,861 170 29,240 21.2% 78.2% 0.6% 1.8% Education 4,804 9 598 5,411 88.8% 0.2% 11.1% 0.3% Finance and Insurance 1,638 20 636 2,295 71.4% 0.9% 27.7% 0.1% Others 41,894 195 11,316 53,404 78.4% 0.4% 21.2% 3.3% Total % Share of Total Coverage Ratio 1,203,614 357,019 45,491 1,606,125 74.9% 22.2% 2.8% 100.0% 74.9% 0.9% 22.2% 8.1% 2.8% 68.0% 100.0% 4.4% 223#24Overview 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 Oil and Gas 1,932 1,940 7 0.4% 6.0% 6.2% 4,469 4,130 (340) -7.6% 1.4% 1.0% - Oil & Gas Upstream 0 0.0% 0.0% 0.0% - Oil & Gas Downstream 3,559 2,836 (722) -20.3% 5.0% 3.6% - Oil & Gas Services 911 1,293 383 42.0% 1.1% 0.9% Power 0 0 0 25.0% 0.0% 0.0% Manufacturing 3,290 3,074 (216) -6.6% 1.4% 1.4% General Commerce 6,221 4,708 (1,513) -24.3% 5.0% 3.3% Transport 16,562 9,434 (7,128) -43.0% 10.4% 4.7% Consumer (Individuals) 3,636 3,055 (581) -16.0% 6.8% 5.1% Government 30 23 (7) -24.0% 0.0% 0.0% Construction 797 1,441 644 80.8% 1.8% 1.9% Agriculture 3,877 4,966 1,090 28.1% 8.4% 10.5% Real Estate 36 170 133 366.1% 0.1% 0.6% Education 566 598 32 5.6% 6.7% 11.1% Finance and Insurance 598 636 38 6.3% 16.3% 27.7% Others 11,035 11,316 282 2.6% 25.3% 21.2% Total 53,050 45,491 (7,559) -14.2% 3.8% 2.8% 24 24#25Overview 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) 4.8% 4.7% 3.8% 3.6% 2.8% H1 2020 9M 2020 2020FY Q1 2021 H1 2021 Coverage Ratio 0% H1 2021 0% 4% 4% 21% 39% 30% 31% 2020FY 0% 1% 672% 7%. 0% 10% 12% 7% 6% 3% 7% 7% 3% 0% 0% Cost of Risk ■Communication: 4% Vs 4% ■Oil & Gas: Upstream: 0% Vs 0% ■Transport: 31% Vs 21% ■Power: 0% Vs 0% ■Gen. Commerce: 12% Vs 10% Govt.: 0% Vs 0% ■ Oil & Gas: Downstream: 7% vs 6% ■Consumer: 7% vs 7% ■Oil & Gas: Service: 2% Vs 3% ■Manufacturing: 6% Vs 7% ■Construction: 2% Vs 3% Others: 30% Vs 39% 61.3 63.1 54.3 53.1 155.4% 45.5 1.4% 117.5% 139.3% 138.5% 1.3% 1.2% 115.8% H1 2020 9M 2020 0.4% 0.3% 2020FY Q1 2021 H1 2021 Coverage Ratio H1 2020 9M 2020 2020FY Q1 2021 H1 2021 25 25 Non-performing Loans#26Overview 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 250.7 262.2 273.5 264.4 273.4 Tier 1 Capital 224.3 236.0 11.7 18.8% Regulatory Adjustment (20.2) (30.2) 10.0 18.2% 18.2% 18.4% 18.8% Adjusted Tier 1 Capital 204.1 205.8 1.8 15.0% 15.0% 15.0% 15.0% 15.0% Tier 2 Capital 39.6 68.5 28.9 Total Qualified Capital 243.7 274.4 30.7 H1 2020 9M 2020 Total Equity - Fidelity CAR 2020FY Q1 2021 H1 2021 -Regulatory Minimum Credit Risk Market Risk Operational Risk Risk Weighted Assets 1,048.3 1,211.4 163.1 87.6 52.9 (34.7) 204.3 198.6 (5.7) 1,340.2 1,462.9 122.7 Capital Adequacy Ratio Tier 1 Tier 2 15.2% 3.0% 14.1% 4.7% Overall CAR 18.2% 18.8% Capitalization of H1 2021 profit led to the increase in CAR to 18.8% from 18.2% in 2020FY. Excluding the regulatory adjustment, CAR would have come in at 20.8%. Tier II Capital included our 10-Yr N41.2bn Bonds issued in Jan 2021 @ 8.5% coupon p.a. 26 26#27*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#28Overview Operating Environment Financial Review 2021FY Target Actual Vs. Target PBT Loan Growth Deposit Growth H1 2021 2021FY Target N20.6bn N35.2bn Comment On Track 15.8% 10.0% 15.0% On Track 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% Below 65.0% On Track - ROAE Post Tax Cost of Risk NPL Ratio Tax Rate 14.2% 12.20% On Track 0.3% 1.0% - 1.2% On Track 2.8% Below 5.0% On Track 6.4% - 10.0% 15.0% N/A 25-40% (of PAT) Proposed Dividends Please note: final dividend per share is subject to regulatory and shareholders' approval. On Track N/A 28#29Fidelity Bank Plc. 2 Kofo Abayomi Street, Victoria Island, Lagos, Nigeria +234 (01) 4480853 [email protected] www.fidelitybank.ng