Fidelity Bank posts N13bn profit in H1 2018

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Fidelity Bank Plc has announced its half year financial figures showing a 27.3 per cent jump in profit before tax (PBT) from N10.2 billion in the previous period to N13 billion in the reporting period.

Details of the audited half year results for the period ended June 30, 2018, released at the Nigerian Stock Exchange (NSE) on Wednesday also showed profit after tax (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 N88.9 billion.

In other indices, total assets grew by 13.7 per cent to N1, 567.6 billion from N1,379.2 billion in the previous period.

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

Commenting on the results, the bank’s chief executive officer, Mr. Nnamdi Okonkwo attributed what he described as “impressive performance” to the disciplined approach in managing the balance sheet growth of the bank, its strategic cost containment initiatives, focused attention to chosen business segments and determined execution of its retail and digital banking strategy.

“Gross earnings, net fee and commission income all grew primarily due to the increase in transactional activities. Our digital banking initiative continues to gain traction with almost 40 percent of our customers now enrolled on our mobile/internet banking products and over 80 percent of total transactions now done on our digital platforms”.

“As shown in recent years, 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 10.6per 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” he said.

Although the 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,” he said.

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 expressed optimism that the bank will sustain this sterling performance in the second half of the year.

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