Fidelity Financial Review & Guidance
Overview 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.
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