Fidelity Bank grows profit by 94% to N20b

Fidelity Bank Plc has reported N20 billion Profit Before Tax (PBT) for the financial year ended December 31, 2017. The result represents 94 per cent rise in profitability when compared with 2016 figure.

The bank’s gross earnings rose from N152 billion in 2016 to N179.9 billion in 2017, represnting 18.3 per cent increase. Other details of the full year audited results released yesterday at the Nigerian Stock Exchange (NSE), showed impressive growth in all key indices.

The performance capped a remarkable 2017 fiscal year for the bank which returned to the international capital markets and successfully issued a $400 million Eurobond that was over-subscribed by over 200 per cent.

The bank is proposing to pay 11 kobo dividend to shareholders. The lender’s Profit After Tax (PAT) surged by 93.7 per cent to N18.9 billion compared with N9.7 billion recorded in the previous year.

Its Net Interest Income (NIM) increased by 15.4 per cent to N71.5 billion in 2017, Net Operating Income rose by 9.9 per cent from N86 billion to N78.3 billion while total assets grew by 6.2 per cent from N1.3 trillion to N1.4 trillion in the period under review.

In other indices, total expenses declined by 2.3 per cent to N65.7 billion from N67.2 billion whilst liquidity ratio stood at 35.9 per cent compared with 33.2 per cent in the previous year.

Fidelity Bank CEO, Nnamdi Okonkwo expressed delight with the performance. He said the bank sustained its performance through disciplined balance sheet management, strategic cost reduction, increased focus on the corporate, commercial, SME segments and continued execution of its retail and digital banking strategy.

“We are delighted at the results, which showed strong growth in key revenue lines, significant traction in our chosen business segments and a corresponding decline in our operating expenses despite the high inflationary environment”, he stated.

According to him, the implementation of initiatives from its Business Process Review Project and the bank’s digital focus, continued to impact positively on operational efficiency as “total operating expenses declined by 2.3 per cent to N65.7 billion leading to the cost-income ratio dropping to 67.5 per cent from 77.3 per cent in the 2016 fiscal year.

“The combination of the strong net revenue growth of 9.9 per cent to N7.7 billion and the 2.3 per cent decline in total expenses which translated to cost savings of N1.5 billion resulted in our increased profitability”.

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