Fidelity Bank has reported N20.1 billion Profit Before Tax (PBT) for the nine month period of its operations ended September 30 this year, amidst other positive financial tractions during the period.
Details of the results for the period under review released on Thursday at the Nigerian Stock Exchange (NSE) showed a double-digit growth in revenues and profitability as well as proofs that the lender was strongly on track to surpass its 2018 financial year growth projections.
An analysis of the financial statement showed that the lender’s Gross Earnings grew by 6.9% to N139.0 billion from N130.1 billion reported in the same period in 2017 whilst profit-before-tax soared by 23.6% from N16.2 billion to N20.1 billion.
Similarly, its total assets grew by 21.9 % to N1,680.8 billion from N1,379.2 billion in the same period last year. Total deposits; a measure of customer confidence, increased by 27.3 % to close at N986.8 billion from N775.3 billion in 2017
Commenting on the bank’s performance so far, the Managing Director, Mr. Nnamdi Okonkwo expressed delight over the nine months financial performance with the continuing execution of our medium-term strategy which had yielded positive results, leading to impressive growth across key performance indices including profitability, total deposits and balance sheet size, amongst others.
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 % to close at N139.0 billion primarily driven by the growth in earning assets by 19.2 % which led to a 9.1% increase in interest income to N120.4 billion”, he explained.
Over the years, Fidelity Bank has been introducing customer – focused digital products to grow its market share and mobilize cheaper funds.
For instance, its savings deposits increased by 12.9% to N201.7 billion leading to the fifth consecutive year of double-digit savings growth whilst low cost deposits, now account for 73.6 % of total deposits as shown in the results.
The growth in deposits is further complemented by its digital banking push with has resulted in having over 40% of its customers enrolled on the mobile/internet banking products and recording over 80 % of total transactions on digital platforms.
Despite the high inflationary environment, the bank’s expenses grew by 6.5% to N50.6 billion due to increased technology investment and higher AMCON charges while its cost to income ratio remained relatively stable at 68.4 % compared to 67.5% in the 2017FY.
The bank’s Non-performing Loans (NPLs) Ratio improved to 6.0 % from 6.4 percent in the 2017FY despite a 3.4 % growth in the 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 % and Liquidity Ratio at 38.3 %
