Fidelity Bank’s profit rises by 20% to N21.5bn in 9 months

Fidelity Bank
Fidelity Bank

FIDELITY Bank Plc has reported a growth of 20 percent in profit after tax, PAT, to N21.5 billion for the nine months ended September 30, 2019. The profit increased from N17.9 billion recorded in the corresponding period of 2018 to N21.5 billion.

According to the unaudited results, Fidelity Bank Plc recorded gross earnings of N161 billion in 2019, showing an increase of 15 percent. Net interest income stood at N58.2 billion, compared with N58.1 billion in 2018. Fees and commission income rose from N15.1 billion to N19.2 billion.

The bank ended the period with profit before tax (PBT) of N23 billion, showing an increase of 15 percent, while PAT grew faster by 20 percent to N21.5 billion, from N17.9 billion.

A further analysis of the figures showed that total assets grew by 14.6 percent to N1.971 trillion, from N1.719 trillion in the same period last year. Total deposits, a measure of customer confidence, increased by 14.0 percent to close at N1.116 trillion from N979.4 billion in 2018 full year.

Commenting, Nnamdi Okonkwo, managing director, Fidelity Bank Plc, said: “We look forward to sustaining the momentum in fourth quarter (Q4) 2019 and achieving our set targets for 2019 financial year. The retail banking has continued to deliver impressive results as savings deposits increased by 9.2 percent to N248.9 billion.

“The bank is on course to achieving the sixth consecutive year of double-digit savings growth. Savings deposits now accounts for about 22.3 percent of total deposits, an attestation of our increasing market share in the retail segment,” he said

Okonkwo explained that the growth in deposits was further complemented by the bank’s digital banking push which has resulted in having over 46.4 percent of its customers enrolled on the mobile/internet banking products and recording over 82.0 percent of total transactions on digital platforms. “Digital banking continued to gain traction driven by the bank’s new initiatives in the retail lending and increased cross-selling of our digital banking products.”

The banks’ non-performing loans ratio improved to 4.8 percent from 5.7 percent in 2018, while absolute NPL declined by 4.9 percent in the third quarter 2019, compared to second 2019. Okonkwo said all other regulatory ratios remained above the required thresholds with Capital Adequacy Ratio, CAR, at 16.4 percent and Liquidity Ratio at 32.6 percent.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over five million customers who are serviced across its 250 business offices and various digital banking channels. According to the bank, it is focused on select niche corporate banking sectors as well as Micro Small and Medium Enterprises, MSMEs, and it is currently driving its retail banking businesses through its robust digital banking channels.

– Nov. 1, 2019 @ 16:15 GMT |

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