Fidelity Bank grosses N139 billion in third quarter

Fidelity Bank Plc’s nine-months results for the period ended September 30, 2018, showed a 6.9 per cent rise in gross earnings to N139 billion from N130.1 billion reported in the corresponding period in 2017
   
The bank’s profit-before-tax also soared by 23.6 per cent from N16.2 billion to N20.1 billion. Similarly, total assets grew by 21.9 per cent to N1,680.8 billion from N1,379.2 billion during the review period.  
   
Total deposits; a measure of customer confidence, increased by 27.3 per cent to close at N986.8 billion from N775.3 billion in 2017.
 Despite the high inflationary environment, the bank’s expenses grew by 6.5 per cent to N50.6 billion due to increased technology investment and higher AMCON Charges.  
   
Its cost to income ratio remained relatively stable at 68.4 per cent compared to 67.5 per cent in 2017. Its Non-performing Loans (NPLs) ratio improved to 6.0 per cent from 6.4 percent in the 2017FY despite a 3.4 per cent growth in absolute NPL numbers, with the NPL coverage ratio at 109.9 percent. Other regulatory ratios remained above the required thresholds with Capital Adequacy Ratio (CAR) at 17.0 per cent, and Liquidity Ratio at 38.3 per cent. 
   
The Chief Executive Officer, Fidelity Bank, Nnamdi Okonkwo, said: “We are delighted with our nine months financial performance with the continuing execution of our medium-term strategy, which has further yielded positive results, leading to impressive growth across key performance indices including profitability, total deposits and balance sheet size.”         
   
According to him the bank has continued to grow its market share driven by significant traction in its chosen business segments such as Corporate, Commercial, SME, and digitally-led Retail Banking.  
   
“Gross earnings increased y-o-y by 6.9 per cent to close at N139.0 billion primarily driven by the growth in earning assets by 19.2% which led to a 9.1per cent increase in interest income to N120.4 billion.  
 
“Over the years, Fidelity Bank had differentiated itself from its peers by continuously introducing customer – focused digital products to grow its market share and mobilize cheaper funds. “Attesting to that, its savings deposits increased by 12.9 per cent to N201.7 billion leading to the fifth consecutive year of double-digit savings growth whilst low cost deposits, now account for 73.6 per cent of total deposits as shown in the results.”