Profits Soars By 16% To Hit N15.1bn
…Gross Earnings Soars To N103.7bn
Despite the country’s challenging and fiercely competitive business
environment, Fidelity Bank Plc delivered a solid financial performance
in the first half of 2019, recording double-digit growth in key revenue
lines whilst achieving significant traction in digital banking uptake.
Details of the audited half-year result for the period ended June 30,
2019, released at the Nigerian Stock Exchange (NSE) on Thursday showed a
15.7 percent rise in Profit Before Tax (PBT) from N13.0 billion in the
earlier period to N15.1 billion in the reporting period. Profit After
Tax (PAT) rose by 15.6 percent to close at N13.6 billion from N11.8
billion recorded in 2018, whilst gross earnings increased by 12.3
percent from N92.3 billion to N103.7 billion. In other indices, Total
Assets rose by 12.8 percent to N1.940.2bn from N1,719.9bn in the
previous period.
Total Deposits; a measure of customer confidence, increased by 12.0
percent to close at N1,097.0 trillion from N979.4 billion in 2018
Financial Year (FY).
Commenting on the results, Fidelity Bank CEO, Mr. Nnamdi Okonkwo
expressed delight with the bank’s financial performance. According to
Okonkwo, the bank remained focused on the execution of its medium-term
strategic goals and targets for the 2019FY whilst promising that the
bank would continue to sustain the momentum and deliver another strong
set of results for the 9M 2019. He said, “Gross Earnings increased by
12.3 percent to N103.7bn driven by a 52.4 percent growth in our
fee-based income and a 7.2 percent growth in Interest Income. Digital
Banking, Okonkwo stated has continued to gain traction driven by new
initiatives in retail lending segment and increased cross-selling of its
digital banking products.
“We now have 45.0 percent of our customers enrolled in the bank’s
mobile/internet banking products, 82.0 percent of total transactions now
done on digital platforms and 29.0 percent of fee-based income now
coming from digital banking”, he added. The Fidelity CEO pointed out
that retail loans were steadily on the rise after the launch of the
bank’s new digital lending product dubbed Fidelity Fastloan, further
adding that the bank has deepened lending partnerships with select
Financial Technology (FinTechs) companies.
Buoyed essentially by innovative digital technologies, Fidelity Bank’s
retail strategy has become a major game-changer for the business. This
was again evident in the H1 2019 results as savings deposits now account
for about 22.6 percent of total deposits – a clear sign of the bank’s
increasing market share in the retail segment. “We are on course to
achieving the 6th consecutive year of double-digit savings growth”, he
stated.
Total Deposits however increased by 12.0 percent to N1,097.0bn from
N979.4bn driven by double-digit growth in both local and foreign
currency deposits. Non-performing Loans (NPLs) Ratio improved to 5.4
percent from 5.7 percent in the 2018FY due to the growth in the loan
book. With regulatory ratios such as the Capital Adequacy Ratio at 17.0
percent, Liquidity Ratio at 34.8 percent, 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 4 million customers who are served across its 240 business
offices and various digital banking channels. The bank which focuses 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
0 Comments