Fidelity Bank Plc H1 2016 Financial Results

FIDELITY BANK PLC CONDENSED UNAUDITED HALF YEAR FINANCIAL STATEMENTS

JUNE 2016

FIDELITY BANK PLC

STATEMENT TO THE NIGERIAN STOCK EXCHANGE AND SHAREHOLDERS ON THE BANK'S UNAUDITED RESULTS FOR THE PERIOD ENDED 30 JUNE 2016 INCOME STATEMENT FOR THE PERIOD ENDED 30 JUNE, 2016 30 June 2016 N'million

30 June 2015 N'million

31 December 2015 N'million

70,415

72,291

146,891

57,163 (25,535)

56,027 (29,180)

121,158 (60,294)

31,628

26,846

60,864

(4,798)

(3,140)

(5,764)

26,830

23,706

55,100

12,036 (1,322) (776) 1,216 (31,701)

10,210 (1,084) (401) 6,055 (28,821)

17,237 (2,411) (291) 8,496 (64,107)

Share of profit / (loss) of associates accounted for using the equity method Profit before income tax from continuing operations

6,284

9,664

14,024

Profit before income tax from continuing operations

6,284

9,664

14,024

NOTE Gross Earnings Interest and similar income Interest and similar expense

1 2

Net interest income Impairment charge for credit losses

3

Net interest income after impairment charge for credit losses Fee and commission income Fee and commission expense Net gains / (losses) from financial instruments classified as held for trading Net gains/(losses) on investment securities Other operating income Other operating expenses

4 4 5 7 8

Income tax expense from continuing operations

(691)

(1,450)

(120)

Profit after income tax from continuing operations

5,593

8,215

13,904

PROFIT FOR THE PERIOD

5,593

8,215

13,904

Profit attributable to: Equity holders of the bank Non-controlling interests

5,593

8,215

13,904

39

57

48

Earnings per share for profit attributable to owners of the parent Basic (kobo)

SIGNED ON BEHALF OF THE BOARD OF DIRECTORS

NNAMDI OKONKWO

EZINWA UNUIGBOJE

10

FIDELITY BANK PLC STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE, 2016 30 June 2016 N'million PROFIT FOR THE PERIOD Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Net gains/(losses) on Available-for-sale financial assets - Unrealised net gains/(losses) arising during the period - Net reclassification adjustments for realised net gains/(losses) Tax effect of revaluation of equity financial assets Items that may not be reclassified subsequently to profit or loss Remeasurement Gains/(losses) Share of other comprehensive income of associates Tax effect of other comprehensive income of associates

Other comprehensive income for the period, net of tax

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD Total comprehensive income attributable to: Equity holders of the bank Non-controlling interests

5,593

(1,702) -

(1,702)

3,891

30 June 2015 N'million 8,215

995 -

31 December 2015 N'million 13,904

5,163 (783) -

-

(2,667) -

995

1,713

9,210

15,617

FIDELITY BANK PLC STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE, 2016 30 June 2016 N'million


253,613 63,285 711,139

231,978 40,334 572,839

185,332 79,942 578,203

14 14 14

4,930 88,421 174,395 42,823

53,482 99,504 104,022 40,028

4,070 116,607 180,736 40,930

15

59,261

50,498

45,902

1,397,867

1,192,684

1,231,722

17

829,928 950 87,268

796,550 1,221 1,410 70,364

769,636 2,332 58,568

18 19 20

9,336 71,943 102,393 112,584

6,468 48,334 89,780

9,431 51,854 66,264 90,121

1,214,403

1,014,127

1,048,206

14,481 101,272 34,397

14,481 101,272 16,171

14,481 101,272 8,797

23,016 764 9,530 4 183,464

20,930 764 23,950 988 178,556

23,016 764 33,480 1,706 183,516

183,464

178,556

183,516

1,397,867

1,192,684

1,231,722

ASSETS

Note

Cash and balances with central banks Due From Banks Loans and advances to customers Investments: Held for trading(Fair value through profit and loss) Available for sale Held to maturity Property and equipment Intangible assets Deferred tax asset Other assets Assets classified as held for sale

11,12 13

TOTAL ASSETS


LIABILITIES Deposits from customers Current income tax liability Deferred income tax liability Other liabilities Liabilities included in assets classified as held for sale Retirement benefit obligations Other Borrowed Funds On-Lending Facilities Debt Issued Securities

TOTAL LIABILITIES

EQUITY Share capital Share premium Retained earnings Other reserves Statutory reserve SSI Reserve Contingency reserve Non-distributable reserve Revaluation reserve

16

Non-controlling interest Total equity

TOTAL EQUITY & LIABILITIES

FIDELITY BANK PLC STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2016 Share capital N'million At 31 December 2014

14,481

Share premium N'million 101,272

Attributable to equity holders Small scale Retained investment Statutory earnings reserve reserve N'million N'million N'million 11,721

20,930

Contingency reserve N'million

NDR N'million

764

-

23,950

Revaluation reserve N'million

Total equity N'million (7)

173,111

Profit for the year Other comprehensive income

-

-

13,904

-

-

-

-

-

13,904 -

Unrealised net gains/(losses) arising during the year

-

-

-

-

-

-

-

5,163

5,163

13,904 (5,213) (11,615) 8,796

2,086 23,017

764

-

9,530 33,480

(783) (2,667) 1,713 1,706

Net reclassification adjustments for realised net gains/(losses) Remeasurement loss Total comprehensive income Dividend Transfer between reserves At 31 December 2015

14,481

101,272

(783) (2,667) 15,617 (5,213) 183,515

Profit for the year Other comprehensive income

-

-

6,284

-

-

-

-

-

6,284 -

Unrealised net gains/(losses) arising during the year

-

-

-

-

-

-

-

(1,702)

(1,702)

Net reclassification adjustments for realised net gains/(losses) Arising during the year Actuarial losses (Note 27) Total comprehensive income Dividend Transfer between reserves

-

-

6,284 (4,634) 23,950

-

-

-

(23,950)

(1,702) -

-

34,395

23,017

764

-

9,530

As at 30 June, 2016

14,481

101,272

4

4,582 (4,634) 183,464

FIDELITY BANK PLC STATEMENT OF CASHFLOWS FOR THE PERIOD ENDED 30 JUNE 2016 30 June 2016 N'million


Operating Activities Cash flow generated/ (used in) from operations Income taxes paid Interest received Retirement benefits paid Interest paid

(21,599) 51,393 (1,376) (26,082)

60,093 (917) 108,144 (1,997) (58,191)

Net cash flows (used)/ from operating activities

2,336

107,132

Investing activities Purchase of property, plant and equipment Proceeds from sale of property and equipment Purchase of intangible assets Proceeds from sale of unquoted securities Purchase of AFS and HTM financial assets Redemption of HTM financial assets at maturity Proceeds from sale of AFS financial assets Dividend received

(3,044) 65 (4) (35,828) 19,896 18,242 32

(5,920) 151 (739) 1,309 (148,701) 2,112 17,023 1,393

(641)

(133,372)

Financing activities Dividend paid Repayment of long term borrowings Proceeds of debt issued and other borrowed funds

(4,634) (2,502) 36,129

(5,213) (26,268) 41,059

Net cash flows from Financing activities

28,993

9,578

Increase in cash and cash equivalents

30,688

(16,662)

Note

Net cash flows (used)/from investing activities

Cash and cash equivalents at begining of year

114,135

Net foreign exchange difference on cash and cash equivalents

Cash and cash equivalents at end of year

-

12

144,823

126,743

4,054

114,135

FIDELITY BANK PLC NOTES TO THE ACCOUNTS FOR THE PERIOD ENDED 30 JUNE 2016 30 June 2016 N'million


39,598

35,741

80,267

1,926 5,316 8,027 2,124 173 57,163

4,125 6,988 6,413 2,225 534 56,027

12,387 14,150 8,723 4,566 1,065 121,158



16,652 5,999 503 2,275 106 25,535

22,052 3,253 403 1,736 1,736 29,180

44,745 10,815 621 3,963 150 60,294

(4,798)

(3,140)

(5,764)




Commision on E-banking activities Maintenance Charge Commission on travellers cheque and foreign bills Commision and fees on banking services Commision and fees on NXP Credit related fees ATM charges Remittance fees Letters of credit commissions and fees Commission on fidelity connect Commissions on off-balance sheet transactions Collection fees Telex fees Cheque issue fees Other fees and commissions Fee and commission income

5,928 856 763 394 335 509 1,017 375 259 519 229 257 178 108 308 12,036

1,338 1,083 942 545 692 245 473 173 366 157 322 110 180 109 3,476 10,210

6,180 2,143 1,365 1,116 1,006 1,005 978 685 642 408 491 241 273 231 473 17,237

Fee and commission expense

(1,322)

(1,084)

(2,411)

Net fee and commission income

10,715

9,126

14,826

1.0 Interest and similar income Loans and advances to customers Treasury bills and other investment securities: -Held For Trade -Available For Sale -Held To Maturity Advances under finance lease Placements and short term funds

2.0 Interest and similar expense Term deposits Debt issued and other borrowed funds Current accounts Savings deposits Inter-bank takings

3.0 Impairment charge

4.0 Net fee and commission income

5.0 Net gains from financial instruments classified as held for trading through profit and loss Net gains arising from: Bonds Treasury bills






18 (794) (776)

367 (768) (401)

(287) (4) (291)




6.0 Gain/Loss on investment securities Equities investment in subsidiaries that were disposed

7.0 Other operating income Net foreign exchange gains

963

4,994

6,213

Dividend income Profit on disposal of unquoted securities Profit/loss on disposal of investment property Other income

8.0 Other operating expenses Banking sector resolution cost Marketing, communication & entertainment Deposit insurance premium Contractor compensation Repairs and maintenance Computer expenses Security expenses Training expenses Corporate finance expenses Litigations and claims Bank charges Legal expenses Consultancy expenses Travelling and accomodation Telephone expenses Postage and courier expenses Insurance expenses Office expenses Cash movement expenses Stationery expenses Rent and rates Directors' emoluments Electricity Auditors' remuneration Other expenses Personnel expenses Depreciation

9.0 Personnel expenses Salaries and wages Pension costs (Note 27): - Staff Gratuity Plan - Staff Retirement benefit plan

10.0 Earnings per share

10.0 Basic and Dilluted Basic earnings per share is calculated by dividing the net profit attributable to

32 (4) 224 1,216

791 15 (7) 262 6,055

1,393 86 (57) 861 8,496




3,063 3,738 1,846 1,745 1,272 1,527 694 165 290 127 148 226 294 216 57 157 207 277 127 112 114 206 94 620 12,268 2,107 31,701

2,994 811 1,788 1,712 1,074 731 629 254 213 248 120 211 226 117 57 145 186 309 100 108 134 170 94 1,497 12,970 1,923 28,821



10,987

11,689

25,062

1,282 12,268

1,282 12,970

2,063 27,125



-

39

57

5,935 5,845 3,332 3,533 2,457 1,627 1,295 650 606 545 434 432 407 531 251 111 319 395 591 218 315 346 372 150 2,300 27,125 3,985 64,107



48

Profit/(loss) attributable to equity holders of the Bank Weighted average number of ordinary shares in issue Basic& Diluted earnings per share (expressed in kobo per share per annum)

11.0 Cash and balances with central bank

Cash Balances with central bank other than mandatory reserve deposits Included in cash and cash equivalents Mandatory reserve deposits with central bank Carrying amount Cash and Cash Equivalents Cash and cash equivalents comprise balances with less than three months' maturity from the date of acquisition, including cash in hand, deposits held at call with other banks and other short-term highly liquid investments with original maturities less than three months. 12.0 Cash and balances with central bank



22,150 59,388 81,538 172,074 253,613

22,801 (6,687) 16,114 215,863 231,978




20,335 13,858 34,193 151,139 185,332

31 December 2015 N'million 34,193

Loans and advances to banks Total cash and cash equivalents

13.0 Loans and advances to customers

Overdrafts Term loans Advances under finance lease Other loans Impairment

63,285 144,823

40,334 56,449

79,942 114,135




91,234 613,731 31,222 527 (25,574) 711,139

91,143 474,483 21,105 6,679 (20,571) 572,839

78,446 495,528 22,640 2,364 (20,776) 578,202




4,929 1 4,930

53,490 (29) 21 53,482

238 3,832 4,070

60,144 12,971 7,942 7,364 88,421

79,215 2,652 9,118 8,519 99,504

71,750 32,186 5,428 7,243 116,607

78,698 73,229 5,479 16,990 174,395

66,935 15,005 5,944 16,137 104,022

95,481 63,313 5,795 16,147 180,736

267,746

257,007

301,413




17 9 26

16 9 26

2 6 9




18,639 8,345 26,984

7,911 24,429 32,340

27,780 12,364 40,144

33,463 213 33,677 (1,400) 32,277 59,261

19,519 304 19,824 (1,665) 18,158 50,498

6,580 560 7,140 (1,382) 5,758 45,902

14.0 Investments

Debt and equity securities 14.1 Fair value through profit and loss Treasury bills - At fair value through profit and loss Federal Government bonds - At fair value through profit and loss Corporate Bonds-At fair value through profit and loss State Bonds- At Fair value through profit and loss Listed equity investments - At fair value through profit and loss

14.2 Available for sale Treasury bills - Available-for-sale (At fair value) Federal Government bonds - Available-for-sale (At fair value) State bonds - Available-for-sale (At fair value) FMB Zero Coupoun Bonds Corporate Bonds- Available -for-Sale Equity investments - Available-for-sale (At fair value)-gross

14.3 Held to maturity Treasury Bills- Held-to Maturity Federal Government bonds - Held-to-maturity (At amortised cost) State Government bonds - Held-to-maturity (At amortised cost) Corporate Bonds- Held To Maturity AMCON - Held-to-maturity (At amortised cost)

Total investments

14.4 Pledged assets Treasury Bills and Bonds are pledged to the Nigerian Inter Bank Settlement The nature and carrying amounts of the assets pledged as collaterals are as follows:

Treasury bills Federal Government bonds Other assets

15.0 Financial assets

Sundry receivables Non-Propreitory assets Others Less: Specific allowances for impairment Non financial assets Prepayments Other non financial assets Specific allowances for impairment Total



Demand Savings Term Domicilliary Others

319,267 138,104 235,908 88,610 48,038 829,928

285,878 105,214 302,086 97,966 5,406 796,550

269,495 119,140 321,947 54,391 4,663 769,636

Current Non-current

829,928

796,550

769,636

829,928

796,550

769,636



2,890 36,425 1,278 8,345 3,020 35,311 87,268

9,497 29,892 1,829 24,429 1,537 3,180 70,364

16.0 Deposits from customers

17.0 Other liabilities

Customer deposits for letters of credit Accounts payable Manager's cheque Non-Propreitory Liabilities Provisions Other liabilites/credit balances



5,607 33,485 2,866 12,364 1,945 2,301 58,568

Provisions include staffs year end bonus and other provisions of which there is a constructive and legal obligation on the part of the bank.

18.0 Other Borrowed Funds

Long term loan from SCB London Long Term loan from PROPACO Long term loan from African Development Bank (ADB) (see note 28.4) Long term loan from Citibank and HSBC London European Invest AFDB

19.0 On-Lending Facilities

Central Bank of Nigeria - Salary Bailout facilities Central Bank of Nigeria - Excess Crude Account Central Bank of Nigeria - Real Sector Funds

20.0 Debt Issued Securities

6.875% EuroBond 16.48% Local Bond



10,182 11,200 35,000 5,761 9,800 71,943

3,183 7,958 7,958 24,869 4,366 48,334



71,355 29,938 1,100 102,393

-



83,811 28,773 112,584

59,099 30,681 89,780


7,960 14,925 24,875 4,094 51,854


56,264 10,000 66,264


61,071 29,050 90,121