#1Fidelity Fidelity Bank Investor Presentation Unaudited Financial Results for the 3 months ended March 31, 2021 www.fidelitybank.ng#2Outline 1. Overview of Fidelity Bank 2. The Operating Environment 3. Financial Highlights 4. Financial Review 5. Q1 2021 Actual Vs. 2021FY Guidance 2 www.fidelitybank.ng#31. Overview of Fidelity Bank Nothing Binds Us More To You Than A Promise Kept We Are Fidelity, We Keep Our Word Retail Banking Managed SMEs | Commercial Banking | Corporate Banking | Private Banking 3 Fidelity #OurWord#4Overview of Fidelity Bank Ownership Total Assets: N2.893bn 32.0bn Authorized Shares Issued And Fully Paid 28.96bn $7.1bn Listings: NINGX FMDO 28.96bn Shares NNGX Nigerian Exchange Group OTC Securities Exchange Irish 10yr N41.2bn due Jan 2022 NGN Bonds Stock Exchange $400m Oct 2022 Eurobond Operations & Contact Channels Governance 14 Board Members Non-Executives: 8 Executives: 6 Professional Staff 3,002 Male: 54% Female: 46% 250 Branches 5.8 Million Accounts 3.1m Mobile Customers 5 Board Committees CARDHOLDER 828 ATMs 2.4m Cards 19,076 POS Agusto&Co. Research, Credit Ratings, Credit Risk Management. GCR ANG (Stable) A-NG (Stable) Foreign Currency Rating: Executive Management Team 8 Fitch Ratings S&P Global B-/Stable/B B-/Stable/B www.fidelitybank.ng#5Overview of Fidelity Bank Retail And Digital Banking Evolution / Progress Report Number of Customer Accounts (#'m) Savings deposits (N'bn) 8% 3% 17% 15% 5.3 5.7 5.8 4.5 3.9 Retail Risk Assets (N'bn) 2% -1% 424.4 441.6 -16% 43% 53.8 53.4 54.5 44.8 37.6 4% 54% 28% 21% 178.6 228.0 275.2 2017 2018 2019 2020 Q1 2021 2017 2018 2019 2020 Q1 2021 2017 2018 2019 2020 Q1 2021 Mobile/Internet Banking Cust. (#'000) Number of Debit Cardholders (#'000) 4% 21% 31% 11% 6% 4% 3,000 3,133 2% 38% 2,488 1,906 1,005 1,059 1,937 2,206 2,338 2,441 1,982 1,382 795 513 345 1,036 1,393 1,693 1,995 2,074 2017 2018 ■Mobile Banking 2019 2020 Q1 2021 2017 2018 2019 2020 Q1 2021 ■Internet Banking 5 * Electronic Banking Penetration (%) 5%* 5%* 1%* 7%* 42.4% 47.4% 52.8% 53.7% 35.4% 2017 2018 2019 2020 Q1 2021 Approximated difference between 2 values www.fidelitybank.ng#6Transaction Volume Statistics Internet Banking (#' Mn) Q1 2021 10.1 2020FY 2019FY 15.2 POS (#' Mn) Q1 2021 2020FY 8.4 2019FY 18.2 Mobile Banking (# 'Mn) Q1 2021 23.5 27.0 2020FY 2019FY ATM (#' Mn) Q1 2021 10.5 26.3 2020FY 2019FY 46.0 44.6 63.2 24.7 NIP (# 'Mn) 38.8 19.9 2019FY 2020FY Q1 2021 31.2 In-Branch (# 'Mn) 20.6 5.9 58.4 2019FY 2020FY Q1 2021 www.fidelitybank.ng#72. Operating Environment Grow Your Investment Back Home With Fidelity Theme: The New CBN FX Policy, Implications and Positive Impact to Diaspora Investments in Nigeria. XXXX XX Diaspora Webinar Series Fidelity Guest Speakers Prof. Okey Oramah Chairman/ President, Afrexim Bank Hon. Abike Dabiri Erewa Chairman, CEO, NIDCOM (Nigerians In Diaspora Commission) Prof. Olawale Sulaiman CEO, RNZ Global Yemi Osinbajo Vice President of Nigeria Special Guest Godwin Emefiele Governor, CBN Chief Host Nneka Onyeali-Ikpe Managing Director/CEO of Fidelity Bank Host Visit http://bit.ly/DiasporaSeries to register for the Webinar today Prof Ndubuisi Ekekwe Chairman Fasmicro Group 7 E A Mr. Alistair Soyode Mentoring Cmdt, NIDMECORP#8The Operating Environment IMF revised its 2021 GDP growth forecast for Nigeria to 2.5% from its earlier projection of 1.5%, citing stronger economic recovery as the count of Covid-19 vaccination increase. Headline inflation inched up further for the 19th consecutive months from 11.0% in Aug 2019 to 18.2% in March 2021. High food prices, insecurity and the pass-through effect of the Covid-19 pandemic etc. led to constantly rising inflation rate. Average crude oil prices (Bonny Light) increased by 45.4% to $61.3pb in Q1 2021 from $42.1pb in 2020FY with the highest and lowest prices at $69.4pb in Mar and $50.7 in Jan 2021 respectively. Crude prices are currently above $65.0pb while the daily crude oil production averaged 1.48mbpd in Q1 2021. External reserves stood at $34.8bn on 31 Mar 2021. Real GDP Growth 2.6% 1.9% 0.1% Q1 '19 Q2'20 Q4'20 -3.6% -6.1% Headline Inflation (%) 18.2 13.7 12.3 16.5 14.9 12.4 12.8 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 Bonny Light ($ per Barrel) 63.0 43.6 46.7 39.7 55.2 15.3 33.9 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 www.fidelitybank.ng#9Key Regulatory & Policy Changes MPR the retained at 11.5% and asymmetric corridor remain unchanged at +100/-700bps. ■ Also, CRR and Liquidity Ratio were kept at 27.5% and 30.0% respectively. ■ The Finance Act 2020 took effect from January 1, 2021. ■ 2021 appropriation bill signed off with an increase in aggregate revenue and planned expenditure. JAN 2021 FEB 2021 CBN issued regulatory framework for Open Banking in Nigeria. for - SEC released general rules Collective Investment Schemes prescribing that all units/securities of a collective investment scheme shall be registered by the Commission. CBN extends regulatory forbearance for restructured loans impacted by Covid-19 for another 12 months. ■ MPC left all policy rates (MPR, CRR and Liquidity Ratio) unchanged at its March 2021 meeting. CBN introduced Naira-for-Dollar Scheme, a N5 per $ 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. MAR 2021 www.fidelitybank.ng#102. Financial Review GROW YOUR EXPORT BUSINESS WITH FIDELITY Visit any of our branches today for: •Ready Market Access •Enhanced Capacity • Financing. 10#11Financial Highlights ☐ Gross Earnings increased by 7.7% YoY to N55.1bn in Q1 2021 on account of 66.7% increase in Non-Interest Revenue to N12.1bn from N7.2bn in Q1 2020. In absolute figure, the increase in NIR came from FX Related Income, Digital Banking Income and Account Maintenance Charge etc. NIM was unchanged at 6.3% compared to 2020FY, however, we sustained YoY drop in Interest Expenses which translated to 17.1% increase in Net Interest Income despite 4.3% YTD growth in our Interest Bearing Liabilities. Total Operating Income increased by 13.4% to N34.4bn while Operating Expenses grew by only 6.2% to #23.0bn, resulting in 53.9% YoY increase in PBT to N10.1bn from N6.6bn in Q1 2020. We converted our FCY Balance Sheet at FX Rate of N407.6/$ compared to N400.3/$ in Dec 2020. Total Deposits grew by 3.1% YTD to N1,751.3bn driven by a strong growth in Low Cost Deposit which led to N5.1bn (26.2% YoY) decline in Interest Expenses as Avg. Funding Cost dropped to 2.5% from 3.6% in 2020FY. FCY Deposits increased by 7.7% YTD to #321.2bn while LCY Deposits increased by 2.1% YTD to N1,430.1bn. Savings Deposits grew by 4.1% YTD to N441.6bn from N424.4 in 2020FY and was responsible for 32.9% of the absolute growth in Total Deposits, an attestation of our increasing market share in the retail segment. Risk Assets increased by 7.6% YTD to #41,426.3bn from N1,326.1bn in 2020FY. However, the actual growth was 6.8% while the impact of the currency adjustment accounted for 0.8% growth in the loan book. 11 www.fidelitybank.ng#12Financial Highlights Summary of Income Statement: YoY Change N'million Q1 2020 Q1 2021 VAR % VAR Gross Earnings 51,159 55,122 3,963 7.7% Interest Income Loans 32,340 33,941 1,601 5.0% Interest Income Liquid Assets 11,586 9,121 (2,465) -21.3% Total Interest Income 43,926 43,062 (864) -2.0% Interest Expense Customer Deposits (12,673) (7,681) (4,992) -39.4% Interest Expense Borrowings (6,653) (6,584) (69) -1.0% Total Interest Expense (19,326) (14,265) (5,061) -26.2% Net Interest Income 24,600 28,797 4,198 17.1% FX Income 1,965 5,936 3,971 202.1% Digital Income 1,624 2,203 579 35.7% Other Fee Income (Net) 2,126 (2,574) (4,700) -221.1% Net Fee Income 5,715 5,566 (149) -2.6% Net Revenue 30,315 34,363 4,048 13.4% Total Expenses (21,628) (22,963) 1,335 6.2% Operating Profit 8,687 11,400 2,713 31.2% Net Impairment Losses (2,103) (1,266) -837 -39.8% Profit Before Tax 6,583 10,134 3,550 53.9% Please note: Gross earnings was calculated based on total fees & commission income Net fee income includes net gains/(losses) from financial instruments 12 www.fidelitybank.ng#13Financial Highlights Statement of Financial Position: YTD Change N'million 2020FY Q1 2021 VAR % VAR Total Assets Earning Assets 2,758,148 2,893,205 135,057 4.9% 1,828,807 1,896,527 67,720 3.7% Bank Placements 51,799 56,320 4,521 8.7% Treasury Bills Bonds Customer Loans (Naira) 264,032 259,171 (4,861) -1.8% 186,870 154,781 (32,089) -17.2% 769,401 859,896 90,495 11.8% Customer Loans (FCY) 556,705 566,360 9,655 1.7% Non-Earning Assets 929,341 996,678 67,337 7.2% Cash 44,751 62,605 17,854 39.9% Cash Reserve 432,741 494,961 62,220 14.4% Bal. with other Banks/Settlement Acct 339,331 315,506 (23,825) -7.0% Fixed Assets 38,446 38,801 355 0.9% All Other Assets 74,072 84,804 10,732 14.5% Interest Bearing Liabilities 2,268,094 2,366,474 98,380 4.3% Demand 883,300 937,695 54,395 6.2% Savings Time Deposits Other Borrowings 424,384 441,572 17,188 4.1% 391,342 372,070 (19,272) -4.9% 99,055 89,142 (9,913) -10.0% On-lending Facilities 308,097 315,388 7,291 2.4% Debt Securities 161,916 210,608 48,692 30.1% All Other Liabilities 216,521 262,307 45,786 21.1% Equity 273,533 264,424 (9,109) -3.3% Please note: The Balance Sheet was converted at an exchange rate of N407.6/USD 13 www.fidelitybank.ng#14Gross Earnings Analysis N'million Q1 2020 Q1 2021 VAR % VAR Total Earnings: Q1 2020 Total Earnings 51,159 55,122 3,963 7.7% Maint. Fee, 1% Trade, 1% Maint. Fee, 2%. Total Earnings: Q1 2021 Trade, 1% Interest Income Loans 32,340 33,941 1,601 Int. Inc. Liquid Assets 11,586 9,121 (2,465) 5.0% -21.3% Digital, 3% Others, 5% Digital, 4% Others, 5% FX Income, 4% FX Income, 11% FX Income 1,965 5,936 3,971 202.1% Digital Income 1,624 2,203 579 35.7% A/C Maintenance fee 735 899 164 22.3% Trade Income 543 432 (111) -20.5% Other Income 2,366 2,590 224 9.5% Int. Inc. Liquid Assets, 23% Int. Income Loans, 63% Int. Inc. Liquid Assets, 17% Int. Income Loans, 62% N'million Q4 2020 Q1 2021 VAR % VAR Total Earnings: Q4 2020 Total Earnings: Q1 2021 Total Earnings 51,174 55,122 3,948 7.7% Maint. Fee, 2% Interest Income Loans 33,555 33,941 386 1.1% Digital, 4% Int. Inc. Liquid Assets 10,729 9,121 (1,608) -15.0% FX Income 4% Trade, 1% Maint. Fee, 2% Others, 3% Digital, 4% FX Income, 11% Trade, 1% Others, 5% FX Income 2,019 5,936 3,917 194.0% Digital Income 2,217 2,203 (14) -0.6% A/C Maintenance fee 821 899 77 9.4% Trade Income 440 432 (8) -1.8% Other Income 1,392 2,590 1,198 86.0% Int. Inc. Liquid Assets, 21% Int. Income Loans, 66% Int. Inc. Liquid Assets, 17% Int. Income Loans, 62% Gross earnings increased by 7.7% YoY (7.7% QoQ) as economic recovery translate to increased non-interest revenue: total customer induced transactions across all service channels increased by 30.4% YoY and 17.1% QOQ. However, total interest income dropped by 2.0% YoY due to lower yields on earning assets in the review period. 14 www.fidelitybank.ng#15Net Interest Margin Analysis NIM remained unchanged at 6.3% compared to 2020FY, as drop in avg. funding cost compensated for the decline in yields on avg. earning assets. ▸ The decline in avg. funding cost was led by improved deposit mix: Low cost deposits is now 78.8% of total deposits from 77.0% in 2020FY (Q1 2020: 77.4%). ► Avg. cost of deposits dropped by 129bpts to 1.8% while the avg. borrowing cost declined by 61 bpts to 4.5%. NIM Trend 6.6% 6.4% 6.3% 6.3% 6.3% Moderation in yields on earning assets was largely caused by a lower average yields on liquid assets. Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 Yield on Earning Assets Funding Cost 11.8% 11.5% 4.4% 4.3% 11.1% 10.7% 4.0% 3.6% 9.4% 2.5% Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 15 Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 www.fidelitybank.ng#16Total Expense Analysis N'million Q1 2020 Q1 2021 VAR % VAR Total Expenses: Q1 2020 Total Expenses 21,628 22,963 1,335 6.2% Others Exp., 38% Staff Cost, 30% Others Exp., 26% Total Expenses: Q1 2021 Staff Cost, 24% Staff Cost 6,398 5,494 (904) -14.1% Depreciation 1,415 1,686 271 19.2% Energy, 2% Energy, 1% NDIC/AMCON Cost 4,285 8,608 4,323 100.9% Technology Cost 920 823 (97) -10.5% Energy Cost 330 314 (17) -5.1% Security 335 320 (15) -4.4% Technology Branding & Advert 2,659 1,548 (1,111) -41.8% Cost, 4% Depreciation, 7% Technology Cost, 4% Depreciation, 7% Other Expenses 5,286 4,170 (1,116) -21.1% Regulatory, 20% Regulatory, 37% N'million Q4 2020 Q1 2021 Total Expenses 19,843 22,963 VAR 3,120 Staff Cost 6,747 5,494 (1,253) % VAR 15.7% -18.6% Total Expenses: Q4 2020 Total Expenses: Q1 2021 Others Exp., 45% Staff Cost, 34% Others Exp., 26% Staff Cost, 24% Depreciation 1,634 1,686 52 3.2% Energy, 1% NDIC/AMCON Cost 1,437 8,608 7,171 499.0% Technology Cost 843 823 (20) -2.3% Energy Cost 331 314 (17) -5.1% Security Energy, 2%. 374 320 (54) -14.4% Branding & Advert 2,769 1,548 (1,221) Other Expenses 5,708 4,170 (1,538) -44.1% -26.9% Technology Cost, 4% Regulatory, 37% Total operating expenses inched up by 6.2% YoY to N23.0bn, largely due to N4.3bn growth in regulatory charges (AMCON & NDIC). We recognized AMCON Charge of N6.7bn in Q1 2021 Vs. NO.0 in Q4 2020 (Q1 2020: N3.0bn) which led to the 15.7% QoQ growth in OPEX. 16 www.fidelitybank.ng Technology Cost, 4% Depreciation, 8% Depreciation, 7% Regulatory, 7%#173. Financial Review SFP Enjoy True Freedom With Fidelity E-Banking *770# Online Banking Cards mVisa Dial Download Request Online *770# Banking Cards www.fidelitybank.ng EEE 17 N CINEMA Fidelity We Are Fidelity, We Keep Our Word#18Funding Base Analysis N'million Q1 2020 Q1 2021 VAR % VAR Funding Structure: Q1 2020 Funding Structure: Q1 2021 Demand Deposits 734,787 937,695 202,908 27.6% Debt, 9% Equity, 12% Debt, 8% Equity, 10% Savings Deposits 312,109 441,572 129,463 41.5% Tenor Deposits 305,366 372,070 66,704 21.8% Other Borrowings On-Lending 50,479 89,142 38,663 76.6% Demand, 35% On-lending, On-lending, 12% Demand, 36% 252,174 315,388 63,214 25.1% 12% Debt Securities 191,383 210,608 19,224 10.0% Equity 242,384 264,424 22,039 9.1% Savings, 15% Savings, 17% Total 2,088,683 2,630,898 542,215 26.0% Other Borrowings, 2% Time, 15% Other Borrowings, 3% Time, 14% N'million 2020FY Q1 2021 VAR % VAR Funding Structure: 2020FY Funding Structure: Q1 2021 Demand Deposits Savings Deposits Tenor Deposits Other Borrowings On-Lending Debt Securities 883,300 424,384 441,572 391,342 372,070 99,055 89,142 308,097 315,388 937,695 Equity Total 6.2% 17,188 4.1% (19,272) -4.9% (9,913) -10.0% 7,291 2.4% 161,916 210,608 48,692 273,533 264,424 (9,109) 2,541,627 2,630,898 89,271 54,395 Debt, 6% Equity, 11% Debt, 8% Equity, 10% Demand, 35% On-lending, 12% On-lending, 12% Demand, 36% 30.1% -3.3% 3.5% Savings, 17% Savings, 17% Other Borrowings, 4% Time, 15% Other Borrowings, 3% Time, 14% Deposits still represent a chunk of our funding base, accounting for 66.6% of total funding base and 74.0% of interest-bearing liabilities. 30.1% YTD increase in debt securities was due to the 10-Yr N41.2bn Tier II Bonds issued in Jan 2021 @ 8.5% coupon p.a. 18 www.fidelitybank.ng#19Deposits Analysis ► Total customer deposits increased by 3.1% YTD to N1,751.3bn from N1,699.0bn in 2020FY. ▸ While actual growth was 2.8%, the impact of FX rate adjustment accounted for only 0.3% growth in deposits. ➤ Low-cost deposits grew by 5.5% YTD to 1,379.3bn while pricy deposits declined by 4.9% YTD which was responsible for the 26.2% YoY decline in total interest expenses. ▸ FCY deposits grew by 7.7% and accounts for 18.3% of total deposits. A combination of our renewed drive in diaspora banking and the CBN remittance incentive led to the growth. Deposits by Products - 2020FY Vs. Q1 2021 N'billion 883.3 937.7 424.4 441.6 391.3 372.1 N'billion 23.7% 21.4% Total Deposits 21.2% 17.5% 18.3% 1,699.0 1,751.3 1,352.3 320.8 1,405.9 300.8 1,498.4 317.8 298.2 321.2 1,400.8 1,430.1 1,031.4 1,105.2 1,180.6 Q1 2020 ■LCY Deposits H1 2020 9M 2020 ■FCY Deposits 2020FY ■% FCY Deposits Q1 2021 1,699.0 1,751.3 Time Deposit. 21.2% Demand Savings Time 1 Total Deposits 2020FY ■ Q1 2021 19 Deposits by Products - Q1 2021 Savings Deposit 25.2% Demand Deposit 53.5% www.fidelitybank.ng#20Retail Banking Analysis (Personal Banking) ▸ Savings deposits grew by 4.1% and now represent 25.2% of total deposits from 25.0% in 2020FY. ▸ Savings deposits accounted for 32.9% of the growth in total customer deposits from 25.2% in 2020FY, which has continued to reflect on retail deposits growth. ► Growth was as a result of the disciplined execution of our retail banking strategy and improved cross-selling of our digital products. ► Retail assets increased by 2.1% YTD. We expect an increase in subsequent quarters as business activities improve further. Savings Deposits Trend N'billion 23.1% 25.9% 25.7% 25.0% 25.2% 441.6 424.4 385.1 363.9 312.1 Q1 2020 H1 2020 ■Savings Deposits 9M 2020 2020FY Q1 2021 1% Share of Total Deposits Retail Assets Trend N'billion 4.1% 4.0% 4.0% 40.7% 38.8% 3.8% 38.0% 3.6% Retail Low Cost Deposits N'billion 37.7% 41.8% 50.4 507.3 524.5 51.2 53.0 53.4 54.5 468.0 446.9 395.1 www.fidelitybank.ng Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 ■Retail Deposits ■% Share of Low Cost Deposits ■Retail Assets ■% Share of Total Loan Book 20 20#21Liquid Assets Position Short-term Funds Placements Treasury Bills Bonds 30.2% 1.9% As a % of Total Assets Liquidity Ratio 9.0% As a % of Total Assets As a % of Total Assets 5.3% As a % of Total Assets Gross Loans to Funding Ratio 37.8% 66.0% 65.9% 64.5% 35.0% 61.4% 63.2% 33.9% 31.6% 32.1% 30.0% 30.0% 30.0% 30.0% 30.0% Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 Fidelity LR ―Regulatory Minimum Liquidity Ratio has been sustained above the regulatory minimum of 30.0% with 62.6% of eligible liquid assets invested in T-bills and FGN bonds from 62.0% in 2020FY. LDR was 63.2% from 61.4% in 2020FY but stood at 66.5% after weighting all permissible loans: Mortgage | SME | Consumer loans. 21 www.fidelitybank.ng#22Loan Portfolio Analysis Breakdown of Loans & Advances to Customers: 2020FY Vs. Q1 2021 N'million 2020FY Q1 2021 VAR % VAR Communication 32,217 29,776 -2,441 - 7.6% Oil and Gas 315,155 374,558 59,403 18.8% Upstream Downstream Services 157,939 159,777 1,838 1.2% 71,448 99,096 27,648 38.7% 85,767 115,685 29,918 34.9% Power 134,984 137,672 2,688 2.0% Manufacturing 241,835 207,586 -34,249 - 14.2% General Commerce 124,925 127,866 2,941 2.4% Transport 159,080 178,868 19,788 12.4% Consumer (Individuals) 53,422 54,521 1,099 2.1% Government 157,449 187,313 29,864 19.0% Construction 44,544 64,309 19,765 44.4% Agriculture 46,167 43,262 -2,905 - 6.3% Real Estate 28,110 29,074 964 3.4% Education 8,404 6,883 -1,521 - 18.1% Finance and Insurance 3,668 2,028 -1,640 - 44.7% Others 43,665 51,387 7,722 17.7% Total 1,393,624 1,495,102 101,477 7.3% 22 22 www.fidelitybank.ng#23Loan Portfolio Analysis Breakdown of Loans & Advances to Customers N'million Communication Oil and Gas Upstream 31,521 309,576 145,864 H1 2020 9M 2020 2020FY 30,548 32,217 324,884 315,155 Q1 2021 Agriculture, 2.9%. Others, 6.0% 29,776 374,558 Construction 4.3% Loan Analysis - Q1 2021 Communication, 2.0% Oil & Gas: Upstream, 10.7% 152,278 157,939 Oil & Gas: 159,777 Service, 7.7% - Downstream 88,587 92,736 71,448 99,096 - Services 75,126 79,870 85,767 115,685 Power 127,925 131,139 134,984 137,672 Consumer, 3.6%. Manufacturing 209,632 224,732 241,835 207,586 Gen. Commerce 115,244 117,321 124,925 127,866 Oil & Gas: Downstream, 6.6% Transport 144,476 145,436 159,080 178,868 Government, 12.5% Power, 9.2% Manufacturing, 13.9% Gen. Commerce, 8.6% Transport, 12.0% Loan Analysis - 2020FY Consumer 51,197 52,961 53,422 54,521 Construction,. Government 137,442 159,026 157,449 187,313 3.2% Agriculture, 3.3% Others, 6.0% Construction 37,000 40,290 44,544 64,309 Oil & Gas: Service, 6.2% Agriculture 37,896 39,719 46,167 43,262 Real Estate 26,508 26,747 28,110 29,074 Government, 11.3% Education 5,644 5,752 8,404 6,883 Consumer, 3.8% Fin. & Insurance 1,743 1,123 3,668 2,028 Others 31,483 34,969 43,665 51,387 Oil & Gas: Downstream, 5.1% Total 1,267,289 1,334,648 1,393,624 1,495,102 Transport, 11.4%/ Communication, 2.3% Oil & Gas: Upstream, 11.3% Power, 9.7% Manufacturing, 17.4% Gen. Commerce, 9.0% 23 23 www.fidelitybank.ng#24Loan Book Analysis ▸ Net loans & advances increased by 7.6% to 1,426.3bn, with 87.1% of the loan book in term loans. Net Loans and Advances to Customers N'billion ▸ Actual real loan growth was 6.8% while the adjustment in exchange rate from N400.3/$ to 407.6/$ accounted for 0.8% (#10.1bn). 1,426.3 1,326.1 1,165.8 1,209.1 1,272.5 10.1 30.5 49.5 31.5 556.2 526.8 507.2 501.2 521.4 ▸ FCY loans now constitute about 39.7% of the net loan book from 42% in 2020FY. 664.6 656.2 715.2 769.4 859.9 ▸ Only 8.1% (N7.3bn) of the growth in the LCY loan book were created with on-lending and intervention facilities. Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 ■LCY Loans ■FCY Loans ■Devaluation Impact Net Loans & Advances: LCY Vs. FCY Total Loans by Type – Q1 2021 Lease Finances, 2.2% 43.0% 45.7% 43.8% 42.0% 39.7% 57.0% 54.3% 56.2% 58.0% 60.3% Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 ■LCY Loans ■FCY Loans 24 24 Term Loans, 87.1% Overdrafts, 10.7% www.fidelitybank.ng#25Impairment Analysis Q1 2021 Impairment Charge Impairment Charge: Q1 2020 Vs. Q1 2021 (3,121) 582 Q1 2021 (1,266) (1,266) Stage 1 Stage 2 Stage 3 Total Q1 2020 1,273 Q1 2020 Impairment Charge (2,103) Total Impairment - 39.8% 2020FY Q1 2021 VAR % VAR (7,201) (2,103) FCY 16,716 16,231 -485 -2.90% Stage 1 1,405 Stage 2 Stage 3 Total NGN 50,803 52,616 1,813 3.57% 3,692 25 25 TOTAL 67,518 68,846 1,327 1.97% www.fidelitybank.ng#26Loan Book Breakdown - Stage 1|2|3 Breakdown of Loans & Advances to Customers N'million Communication Stage 1 16,097 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total 12,088 1,591 29,776 54.1% 40.6% 5.3% 2.0% Oil and Gas 264,477 106,334 3,747 374,558 70.6% 28.4% 1.0% 25.1% Upstream 87,191 72,586 0 159,777 54.6% 45.4% 0.0% 10.7% Downstream 93,717 2,453 2,926 99,096 94.6% 2.5% 3.0% 6.6% Services 83,569 31,295 821 115,685 72.2% 27.1% 0.7% 7.7% Power 12,100 125,573 0 137,672 8.8% 91.2% 0.0% 9.2% Manufacturing 193,018 10,872 3,697 207,586 93.0% 5.2% 1.8% 13.9% General Commerce 108,233 13,422 6,211 127,866 84.6% 10.5% 4.9% 8.6% Transport 146,392 15,433 17,043 178,868 81.8% 8.6% 9.5% 12.0% Consumer 48,232 2,389 3,899 54,521 88.5% 4.4% 7.2% 3.6% Government Construction 187,013 228 72 187,313 99.8% 0.1% 0.0% 12.5% 58,466 5,214 628 64,309 90.9% 8.1% 1.0% 4.3% Agriculture 35,555 3,560 4,147 43,262 82.2% 8.2% 9.6% 2.9% Real Estate 28,384 103 587 29,074 97.6% 0.4% 2.0% 1.9% Education 5,876 409 599 6,883 85.4% 5.9% 8.7% 0.5% Finance & Insurance 1,394 0 633 2,028 68.8% 0.0% 31.2% 0.1% Others 38,222 1,720 11,445 51,387 74.4% 3.3% 22.3% 3.4% Total 1,143,459 297,343 54,300 1,495,102 76.5% 19.9% 3.6% 100.0% % Share of Total 76.5% Coverage Ratio 0.7% 19.9% 8.2% 3.6% 100.0% 66.2% 4.6% 26 26 www.fidelitybank.ng#27Loan Book Breakdown - Stage 1|2|3 YTD Change In Loan Book Stages: 2020FY Vs. Q1 2021 N'million Communication Oil and Gas Stage 1 (2,187) Stage 2 Stage 3 Total 87 (341) (2,441) 29,207 30,918 (722) 59,403 Upstream Downstream Services (322) 2,160 0 1,838 30,581 (2,301) (633) 27,648 (1,051) 31,059 (90) 29,918 Power 8,566 (5,877) 0 2,689 Manufacturing (29,689) (4,966) 407 (34,249) General Commerce (9,646) 12,597 (10) 2,941 Transport 28,202 (8,896) 481 19,788 Consumer (Individuals) (1,259) 2,095 263 1,099 Government 30,006 (185) 42 29,864 Construction 14,720 5,214 (169) 19,764 Agriculture (4,710) 1,535 270 (2,905) Real Estate 354 60 551 964 Education (1,944) 391 33 (1,520) Finance and Insurance (1,675) (0) 34 (1,640) Others 6,281 1,031 410 7,722 Total 66,225 34,003 1,249 101,477 27 22 www.fidelitybank.ng#28NPL Analysis ▸ NPL ratio (Stage 3 Loans) dropped to 3.6% from 3.8% in 2020FY due to 7.3% increase in absolute Loan Book to N1,495.1bn. Gross Loans and Advances N'billion 1,495.1 ►FCY NPL accounted for 17.2% of total NPL Book and were largely in the Transport sector etc. 1,393.6 1,334.6 1,218.9 1,267.3 54.3 58.1 61.3 63.1 53.1 ▸ Coverage remains high at 138.5% with specific provisions on Stage 3 Loans currently at 66.2%. 1,160.8 1,206.0 1,271.6 1,340.6 1,440.8 ▸ Key sectors: Oil & Gas Downstream, Agriculture and Telecoms etc. have over 90.0% cover. Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 ■Performing Loans ■Non-performing Loans N' billion NPL Coverage Ratio % Ratio Non-performing Loans 61.3 63.1 58.1 53.1 54.3 4.8% 4.7% 3.8% 3.8% 115.2% 139.3% 138.5% 117.5% 115.8% 3.6% Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 Non-performing Loans Coverage Ratio 28 88 www.fidelitybank.ng#29NPL Portfolio Analysis Breakdown of Non-performing Loans: 2020FY Vs. Q1 2021 2020FY Q1 2021 VAR % VAR N'million N'million N'million % 2020FY NPL Ratio Q1 2021 NPL Ratio Communication Oil and gas 1,932 1,591 (341) -17.7% 6.0% 5.3% 4,469 3,747 (722) -16.2% 1.4% 1.0% - Oil & Gas Upstream 0.0% 0.0% 0.0% - Oil & Gas Downstream 3,559 2,926 (633) -17.8% 5.0% 3.0% - Oil & Gas Services 911 821 (90) -9.8% 1.1% 0.7% Power 0 0 0 11.7% 0.0% 0.0% Manufacturing 3,290 3,697 407 12.4% 1.4% 1.8% General Commerce 6,221 6,211 (10) -0.2% 5.0% 4.9% Transport 16,562 17,043 481 2.9% 10.4% 9.5% Consumer (Individuals) 3,636 3,899 263 7.2% 6.8% 7.2% Government 30 72 42 142.0% 0.0% 0.0% Construction 797 628 (169) -21.2% 1.8% 1.0% Agriculture 3,877 4,147 270 7.0% 8.4% 9.6% Real Estate 36 587 551 1511.6% 0.1% 2.0% Education 566 599 33 5.8% 6.7% 8.7% Finance and Insurance 598 633 34 5.7% 16.3% 31.2% Others 11,035 11,445 410 3.7% 25.3% 22.3% Total 53,050 54,300 1,249 2.4% 3.8% 3.6% 29 22 www.fidelitybank.ng#30NPL Portfolio Analysis Breakdown of Non-performing Loans N'million H1 2020 9M 2020 2020FY Q1 2021 Communication, 2.9% Communication 4,014 2,982 1,932 1,591 Others, 32.1% Oil and Gas 19,309 19,852 4,469 3,747 NPL Analysis - Q1 2021 Power, 0.0% Oil & Gas: Upstream, 0.0% Manufacturing, 6.8% Upstream 0 0 0 0 - Downstream 18,843 Construction 1.2% 19,116 3,559 2,926 Gen. Commerce, 11.4% Oil & Gas: Services 467 736 911 821 Service, 1.5% Power 0 0 0 0 Manufacturing 9,606 11,715 3,290 3,697 Govt., 0.1% Transport, 31.4% Oil & Gas: Downstream, Consumer, 7.2% 5.4% Gen. Commerce 4,178 4,769 6,221 5,859 Transport 9,949 10,779 16,562 17,043 Consumer 4,012 3,338 3,636 3,899 Communication, 3.6% Power, 0.0% Government 164 26 30 72 Others, 30.4% Construction 3,863 1,763 797 628 Agriculture 3,184 3,404 3,877 4,147 Construction 1.5% Real Estate 383 381 36 587 NPL Analysis - 2020FY Oil & Gas: Upstream, 0.0% Manufacturing, 6.2% Gen. Commerce, 11.7% Education 468 697 566 599 Oil & Gas: Service, 1.7% Fin. & Insurance 4 598 633 Transport, 31.2% Others 2,198 3,351 11,035 11,445 Govt., 0.1% Total 61,334 63,062 53,050 53,947 Consumer, 6.9% Pressure NPL Sectors Oil & Gas: Downstream, 6.7% 30 30 www.fidelitybank.ng#31Capital Adequacy Ratio ▸ CAR stood at 18.4%, well above the regulatory minimum requirement of 15.0%. Excluding the regulatory adjustment, CAR would have come in at 19.6%. ▸ Tier II Capital included our 10-Yr N41.2bn Bonds issued in Jan 2021 @ 8.5% coupon p.a.. Total Equity dropped by 3.3% YTD to №4264.4bn from N273.5bn in 2020FY due to N18.7bn (47.2%) decline in Fair Value Reserves to N20.9bn. Capital Adequacy Ratio Computation - Basel II N'billion 2020FY Q1 2021 VAR Tier 1 Capital 224.3 224.3 0.0 Regulatory Adjustment Adjusted Tier 1 Capital (20.2) (17.8) (2.3) 204.1 206.4 2.3 Tier 2 Capital 39.6 74.8 35.1 Total Qualified Capital 243.7 281.2 37.5 Capital Adequacy Ratio Credit Risk 1,048.3 1,257.5 209.1 N'billion % Ratio Market Risk 87.6 65.6 (22.1) 262.2 273.5 Operational Risk 204.3 205.9 1.6 264.4 242.4 250.7 Risk Weighted Assets 1,340.2 1,528.9 188.7 17.7% 18.8% 18.2% 18.2% 18.4% 15.0% 15.0% 15.0% 15.0% 15.0% Capital Adequacy Ratio Tier 1 15.2% 13.5% Tier 2 3.0% 4.9% Q1 2020 H1 2020 9M 2020 2020FY Q1 2021 Overall CAR 18.2% 18.4% Total Equity Fidelity CAR Regulatory Minimum 31 www.fidelitybank.ng#32Strategic Business Units Analysis Corporate & Investment Banking Business Description Handles the bank's institutional clients with turnover in excess of 5.0 billion and treasury business ➤ Key focus sectors include: Treasury □ Conglomerates □ Energy (Oil & Gas) ☐ Telecoms Power FMCG ☐ Fintechs Manufacturing Handles retail, commercial, SME customers, and clients not matching the corporate banking criteria etc. PBT Location Based Analysis Deposits 15.6% 42.6% Loans 32.3% Lagos & SW Bank ➤ Drives retail deposits, lending, payroll and e-products etc. 34.2% 29.4% 33.5% Operates at 101 locations ➤ Handles retail, commercial, SME customers, and clients not matching the corporate banking criteria etc. North Bank 10.3% ➤ Drives retail deposits, lending, payroll and e-products etc. 14.9% 23.4% ➤ Operates at 59 locations including FCT. South Bank Handles retail, commercial, SME customers, and clients not matching the corporate banking criteria etc. ➤ Drives retail deposits, lending, payroll and e-products etc. Operates at 90 locations 32 17.7% 26.8% 19.3% www.fidelitybank.ng#335. Q1 2021 Actual Vs. 2021 FY Guidance SME Banking Tailor-Made For You Take your business to greater heights with our range of SME Banking products and services. FSBA SCHOOL Fidelity Eduloan FPBA Quick SME Loans Business Advisory 3080 33#34Q1 2021 Actual Vs. 2021FY Guidance GROWTH EXPECTATIONS ON KEY INDICATORS S/N Index 1 PBT Q1 2021 Actual N10.1bn 2021FY Target N35.2bn Comment On Track 2 Loan Growth - 3 Deposit Growth 7.6% 10.0% 15.0% 3.1% 15.0% 20.0% Behind Target On Track 4 Net Interest Margin 6.3% 6.0% - 6.5% On Track 5 Cost to Income Ratio 66.8% Below 65.0% On Track 6 RoAE - Post Tax 14.5% 12.2% On Track 7 Cost of Risk 0.4% 1.0% - 1.2% On Track 8 NPL Ratio 3.6% Below 5.0% On Track 9 Tax Rate 5.4% 10.0% 15.0% On Track 10 Proposed Dividends N/A 25-40% (of PAT) N/A 34 =4 www.fidelitybank.ng#35Thank You Fidelity Bank Plc 2 Kofo Abayomi Street, Victoria Island, Lagos, Nigeria +234 (01) 4480853 [email protected] www.fidelitybank.ng