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Fidelity Bank records 70.9% profit after tax

Posted On 13 Sep 2021
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Fidelity Bank records 70.9% profit after tax

 

Fidelity Bank Plc has recorded a 70.9% growth in profit after tax (PAT) to N19.31 billion in the first six months ended June 30, 2021, from N11.30 billion recorded in half-year 2020.

The report released to the Nigerian Exchange (NGX) Limited showed that profit before tax grew by 72.4% to N20.6 billion compared with N12.0 billion recorded in the comparative period of 2020.

The Managing Director/Chief Executive Officer of Fidelity Bank, Mrs. Nneka Onyeali-Ikpe in her comment on the result said the growth was on the back of increased customer transactions and improved operational efficiency.

“We sustained our impressive financial performance with double-digit growth in profit as increased customer transactions drove non-interest revenue while improved operational efficiency continued to moderate cost-to-serve,”

she said.

Fidelity Bank records 70.9% profit after tax

Onyeali-Ikpe also said that the financial result for the period indicated that Gross Earnings increased by 6.2 percent Year-on-Year (YoY) to N112.3 billion on account of 27.8 percent growth in Non-Interest Revenue (NIR) to N23.8 billion from N18.1 billion in H1 2020.

She added that the bank’s NIR was driven by strong growth in commission on banking services by 57.7 percent, account maintenance charges by 50.6 percent, digital banking income by 49.4 percent, and trade income by 33.7 percent among others.

Total customer-induced transactions across all distribution channels increased by 58.0 percent YoY and 21.2 percent QoQ. The bank showed a good appetite in funding the real sector with net loans and advances increasing by 15.8 percent YTD to N1.53 billion from N1.32 billion in 2020FY.

However, the actual growth was 14.7 percent while the impact of the currency adjustment (2020FY: N400.3/dollars-H1 2021: N410.6/dollars) accounted for a 1.1 percent YTD growth in the loan book. Cost of risk came in at 0.3 percent and the NPL ratio (stage 3 loans) dropped to 2.8 percent from 3.8 percent in 2020FY.

Other regulatory ratios remain well above the minimum requirement: capital adequacy ratio at 18.8 percent from 18.2 percent in 2020FY.

Total Deposits increased by 16.5 percent YTD to N1.98 billion from N1.69 billion in 2020FY, driven by increased deposit mobilisation across all deposit types.

“Digital Banking gained further traction as we now have 55.1 percent of our customers enrolled on the mobile/internet banking products and 89.3 percent of customer-induced transactions were done on digital platforms.”

She also explained that the bank’s foreign currency deposits increased by 23.1 percent YTD at 149 million dollars and now accounted for 18.5 percent of total deposits from 17.5 percent in 2020FY.

According to her, “this is as the bank continues to harness the benefits of its renewed drive in the diaspora banking space.

“We look forward to sustaining the current momentum in H2 by optimising our balance sheet and lowering our cost–to–serve. “This will translate to improved earnings while we remain committed to our medium to long-term strategic objectives.”

About the Author
Philomena  Ngozi Christopher-Oji was born to the family of the late Michael and Cecilia Ojeogwu of Ubulu-Uku, in Aniocha South Local Government Area, Delta State. She had her primary and secondary education in Nwanoli and Ezemu Girls College, in Ubulu-Uku, before she proceeded to the Delta State University, Abraka, where she studied English and Literary Studies. READ MORE ABOUT AUTHOR 

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