Investor Presentation June 2013 Outline 1 Fidelity overview 2 2 - PowerPoint PPT Presentation

Investor Presentation June 2013

Outline 1 Fidelity overview 2 2 Nigerian Economy and Banking Sector overview 5 3 Business overview 11 4 Financials highlight 19 5 Looking into the Future 28 1 12KLD0346_Client template1 21/06/2013 12:07:13

Fidelity: a leading financial institution in Nigeria Fidelity Overview Key Financials ₦ Balance Sheet FY 2012 US$  Established in 1987 and received a universal banking Assets 5.88bn 914.4bn licence by the Central Bank of Nigeria in 2001 Loans and advances to customers 2.31bn 345.5bn Non-Performing Loans (ratio) 88.78mn 13.8bn (3.9%)  Solid balance sheet with diversified sources of funding Deposits 4.61bn 716.7bn  The Bank currently has over 400,000 shareholders with Income Statement FY 2012 Net Income 117.1mn 18.2bn the majority being Nigerian citizens and corporations. All ROAE 11.8% shares are listed on NSE with no controlling interest. ROAA 2.8% Capital  One of the highest CAR amongst Nigerian banks at CAR (Total and 100% Tier 1) 29% Other Figures 29%, well above the CBN requirement of 10% Employees 3,491  Over 85% of the branch network located in key business Total Customers 2,000,000 Branches 200 centres and the most economically viable regions of ATMs 388 Nigeria Fidelity’s Ratings (S&P / Fitch) B / B Senior Unsecured Ratings (S&P / Fitch) B / B  A leading partner to the Nigerian power, oil and gas and telecom industries Note: All figures are as of 31 December 2012 unless otherwise stated Figures are translated using an Average FX rate of USD/Naira of 155.44 as of December 2012 2 21/06/2013 12:07:13

Key Investment Highlights Market leading position Experienced Strong franchise management team Consistent financial Sustained quality performance and and asset growth profitability Sound risk Rapidly growing management distribution network practice Transparent corporate governance The Banker Magazine’s 2012 Report ranks Fidelity as “The Soundest Bank” in Nigeria on a CAR basis 3 12KLD0346_Client template1 21/06/2013 12:07:13

Outline 1 Fidelity overview 2 2 Nigerian Economy and Banking Sector overview 5 3 Business overview 11 4 Financials highlight 19 5 Looking into the Future 28 4 12KLD0346_Client template1 21/06/2013 12:07:13

Economy: Strong fundamentals, solid growth Annual GDP Growth Rate Annual Foreign Trade Volume N'billion 33,644 35,000 7.98 29,069 7.43 7.27 27,360 6.93 25,862 6.75 28,000 6.61 21,881 19,658 21,000 14,000 7,000 - 2010 2011 2012 2013f 2014f 2015f 2010 2011 2012 2013f 2014f 2015f Source: Nigerian Bureau of Statistics (NBOS) Source: Nigerian Bureau of Statistics (NBOS) Annual Headline Inflation Rate Monetary Policy Rate & Real Int. Rate % RIR % MPR 4 15 12.3 12.0 11.7 11.3 3.4 2.9 3.0 3.0 3 12 9.5 9.1 9.0 9.0 8.6 2.5 2 9 1 6 0.7 0.3 - 0 3 (0.3) -1 0 Real Interest Rate (RIR) Monetary Policy Rate (MPR) 5 Source: Nigerian Bureau of Statistics (NBOS) Source: Central Bank of Nigeria (CBN) 5 12KLD0346_Client template1 21/06/2013 12:07:13

Stable growth pattern and moderate debt levels Comparative Growth Total Debt Stock/Gross Domestic Product % Growth 25 Angola 28.6% Gabon 20 Ghana Nigeria 19.2% Zambia 18.3% 18.0% 15 13.9% 12.4% 11.8% 11.7% 10 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e 2013e 2005 2006 2007 2008 2009 2010 2011 2012 Tot al Debt S t ock/ GDP -5 Source: IMF, WEO October 2012: Central Bank of Nigeria (CBN)  Nigeria’s GDP growth has been remarkably stable since 2003, averaging 7.1% in the last 9 years.  Debt burden is within manageable levels as government plans to progressively scale down both exiting and fresh borrowing. 6 6 12KLD0346_Client template1 21/06/2013 12:07:13

Nigerian banking sector reform  Post the turbulence witnessed by the sector in 2010, the CBN took decisive measures built on four pillars  Banks report periodically to the CBN via the EFASS, meet with the CBN once a year for approval of the Year End audited financials and are subject to risk based audits carried out by the CBN Ensure financial sector Enhance the quality of Establish financial Enable healthy financial contributes to real banks stability sector evolution economy Key regulatory changes and impact Mandatory ratios Key ratios  New Code of Conduct for banks  Capital adequacy ratio – 10%  Separation of executive and non-executive bodies  Single borrower limit –  Risk-based supervision by CBN and full financial 20% of Equity disclosure  Liquidity ratio – 30%  Adoption of International Financial Reporting Standard (“IFRS”)  Cash Reserve – 12%  Graded capital structure banks: Regional, National or International Banks 7

Overview of the top 10 Nigerian banks Bank Deposits Total Equity Loans and Advances ₦ million ₦ million ₦ million First Bank 2,400,860 Zenith First Bank 462,956 1,953,116 Zenith 1,929,244 First Bank Zenith 438,847 989,814 UBA 1,720,008 GT Bank GT Bank 283,441 783,915 Access 1,201,482 Access Diamond 241,494 725,003 GT Bank 1,148,197 UBA UBA 192,467 687,437 Diamond 910,234 Fidelity Access 161,455 608,638 Skye 790,092 FCMB 132,015 Skye 540,380 Fidelity 716,749 Diamond 108,856 Fidelity 443,500 FCMB 646,217 Skye 106,894 FCMB 357,799 Stanbic IBTC 355,419 Stanbic IBTC 85,651 Stanbic IBTC 320,662 The Nigerian banking sector is composed of 20 banks following CBN’s intervention in 2010 Source: Respective Banks Financial statements as of 31 December 2012 8 12KLD0346_Client template1 21/06/2013 12:07:13

Outline 1 Fidelity overview 2 2 Nigerian Economy and Banking Sector overview 5 3 Business overview 10 4 Financials highlight 19 5 Looking into the Future 28 9 12KLD0346_Client template1 21/06/2013 12:07:13

25 years serving the Nigerian economy Strategic alliances with international financial Institutions, award winning innovative products and a vision to become a market leader is the way forward for Fidelity  Obtained ISO  Fidelity incorporated  Accepted by  Finalised merger 27001 as a Private Limited and quoted on and integration Certification by Liability Company the Nigeria  Grew branch the British  Commenced Stock Exchange network to 82 from Standard Institute  Raised equity operations as a 19 in 2004  Grew branch Merchant Bank through an IPO network to 200 1987-1989 1999 - 2001 2005 - 2006 2007 - 2008 2005 2006 2010 - 2012  Registered as a  Raised US$1bn in  Acquired FSB Int’l Public Limited equity through Bank Plc and Liability Company GDR & Public Offer Manny Bank Plc  Converted to a  Appointed Primary  Folded FSB and Commercial Bank Dealer in Treasury Manny Bank PLC  Licensed as a Bills and Money into the Fidelity Market Instruments Universal Bank brand by CBN 10

Over 25 Years . . . and getting better Some Recent Awards and Recognitions:  Africa Oil & Gas Deal of the Year 2013 – Euromoney Project Finance, UK.  Worldwide Award for Excellence in Transaction Processing– Deutsche Bank – 2013  Telecoms Financing Bank of the Year 2012 – Nigeria Telecoms Awards  Great Place to Work 2012 – Great Place to Work Institute, U.S.A  Worldwide Award for Excellence in Transaction Processing– Deutsche Bank – 2012  Project Finance Bank of the Year 2012 - Euromoney Project Finance, UK  Most Efficient Bank in Clearing Data Transmission 2011 – Nigerian Interbank Settlement Scheme  Most Socially Responsible Bank in Nigeria – SERA Awards – 2010, 2009, 2008, 2007  Africa’s Most Socially Responsible Bank – The Banker Magazine, Washington DC, 2008  6 th Biggest Bank in Nigeria in Mandated by Debt Mgt Office (DMO) in Today, Fidelity is one of the 2006 as: 2012.  17 th in Africa safest, soundest and most  Dealer in FGN Bonds  618 th in the World in 2012.  Dealer in Pensioners Bond stable financial institutions  The Soundest Bank in Nigeria  Dealer in Contractors Bond 2012 in Nigeria.  Best Bond Dealer and Market Maker in 2006, 2008 11

Improving key indicators Fidelity Diamond Bank GTBank Access Bank ( ₦ billion) FYE Dec-12 FYE Dec-11 FYE Dec-12 FYE Dec-12 FYE Dec-12 Asset quality 737.9 1,059.1 1,620.3 1,515.8 Total assets 914.4 Loans and advances 443.5 378.2 636.8 604.1 557.6 NPL ratio 3.9% 7.8% 5.3% 3.4% 5.0% Loans and advances /total assets 48.5% 51.2% 60.1% 46.7% 36.8% Capital adequacy Equity 161.5 146.1 107.3 288.2 237.6 Total Capital Adequacy Ratio 29.0% 24.0% 17.3% 24.2% 22.0% 17.7% 19.8% 10.1% 17.8% 15.7% Equity/total assets Liquidity Deposits 716.7 563.7 831.3 1,061.3 1,118.5 Deposits/total assets 78.3% 76.4% 78.5% 65.5% 73.8% Profitability 2.6 22.2 85.3 36.4 Net Income 18.2 Market share 6.5% 5.9% 4.7% 12.1% 10.3% Equity Deposits 4.9% 3.8% 6.0% 8.8% 8.3% Fidelity’s Strong Capital and Liquidity position is unrivalled among peers Note: Financial Statements are based on IFRS Source: 2012 Respective Financial Statements 12