COVID-19 Impact and Financial Review
Net Interest Margin Analysis
▸ NIM improved to 6.4% from 6.2% in 2019FY, largely due a
200bps drop in average funding cost despite a drop in
yields on earnings assets.
► Drop in average funding cost was due to a combination of
270pbts decline in average cost of deposits to 4.0% and
40bpts drop in average borrowing cost to 5.1%.
► Moderation in yields on earning assets was largely caused
by a lower average lending rate which stood 11.0%.
NIM Trend
6.6%
5.8%
6.0%
6.2%
6.4%
▸ We expect the recent downward review of savings rate
would have about 20bpts positive impact on NIM.
H1 2019
9M 2019
2019FY
Q1 2020
H1 2020
Yield on Earning Assets
Funding Cost
13.5%
13.8%
13.6%
6.6%
6.7%
6.3%
11.8%
11.5%
4.4%
4.3%
H1 2019
9M 2019
2019FY
Q1 2020
H1 2020
H1 2019
9M 2019
2019FY
Q1 2020
H1 2020
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