Fidelity Financial Review & Guidance

Overview 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

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