Fidelity Bank’s half year profit hits N13 billion

Fidelity Bank

Amid harsh operating environment, Fidelity Bank Plc has posted Profit After Tax (PAT) of N11.8 billion in its half year (H1) performance, against N9.03 billion achieved in the corresponding period in 2017.

Specifically, the bank’s performance for the half-year period ended June 30, 2018, showed that PAT rose by 31 per cent to close at N11.8 billion from N9.03 billion recorded in 2017 while gross earnings rose by 3.6 per cent from N85.8 billion to N88.9billion.

The bank attributed the improved performance to its disciplined approach in managing the balance sheet, as well as strategic cost containment initiatives in terms of focused attention to chosen business segments, and determined execution of its retail and digital banking strategy.

Similarly, its Profit Before Tax (PBT) stood at N13 billion, representing 27.3 per cent rise compared to N10.2 billion posted a year earlier.

The bank’s total assets grew by 13.7 per cent to N1.567 trillion from N1.379.2 trillion in the previous period.

Total deposits, a measure of customers’ confidence, also increased by 19.7 per cent to close at N927.9 billion from N775.3 billion in 2017.

Fidelity Bank’s Chief Executive Officer, Nnamdi Okonkwo, said gross earnings, net fee, and commission income grew primarily due to the increase in transactional activities.

According to him, the bank’s digital banking initiative has continued to gain traction with almost 40 per cent of our customers now enrolled on mobile/internet banking products and over 80 per cent of total transactions now done on the platforms.

“Fidelity Bank’s retail digital banking strategy has continued to positively impact the business.

This was again evident in the HI 2018 results, as savings deposits increased by 10.6 per cent to N197.5 billion.

The bank is on track to achieving a 5th consecutive year of double-digit savings growth. Low cost deposits now account for 73.8 per cent of total deposits.

Although Total Operating Expenses grew by 5.7 per cent to N32.7 billion, Okonkwo maintained that the bank’s cost to income ratio remained relatively stable at 67.7 per cent when compared to 67.5 per cent reported in the previous year.

“This is in spite of the double-digit inflationary environment in Nigeria. With regulatory ratios such as the Capital Adequacy Ratio at 17 per cent, Liquidity Ratio at 33.2 per cent, well above required threshold, Okonkwo was optimistic that the bank will sustain this sterling performance in the second half of the year.

“Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over four million customers, who are serviced across its 240 business offices and various digital banking channels.

“The bank, which is focused on select niche corporate banking sectors as well as Micro Small and Medium Enterprises (MSMEs), has in recent times won accolades as the Best SME Friendly Bank, Best in Mobile Banking and the Most Improved Corporate/Investment Bank among several industry awards and recognition.”

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