Fidelity Bank on course to 2018 targets as 9 months profit jumps to N20b
Leading financial institution, Fidelity Bank Plc has posted an impressive performance for the 3rd Quarter of 2018, a pointer that it is on course to finishing strong in the 2018 financial year. Details of the 9-months results for the period ended September 30, 2018, released at the Nigerian Stock Exchange (NSE) showed a double-digit growth in revenues and profitability.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 4 million customers who are serviced across its 240 business offices and various digital banking channels. The bank is focused on select niche corporate banking sectors as well as Micro Small and Medium Enterprises (MSMEs).
According to the result, whereas Gross Earnings grew by 6.9% to N139.0 billion from N130.1 billion reported in the same period in 2017, profit-before-tax soared by 23.6% from N16.2 billion to N20.1 billion. In other indices, 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
In his remarks, the elated chief executive officer of the bank, Mr. Nnamdi Okonkwo averred that “We are delighted with our 9 months financial performance with the continuing execution of our medium-term strategy which has further yielded positive results, leading to impressive growth across key performance indices including profitability, total deposits and balance sheet size etc”.
He noted that 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.
Business Hilights recalls that over the years, Fidelity Bank has differentiated itself from its peers by continuously introducing customer – focused digital products to grow its market share and mobilize cheaper funds. Attesting to that, 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.
Analysts say the jumping 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.
Besides, 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. Its cost to income ratio remained relatively stable at 68.4 % compared to 67.5% in the 2017FY. 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 %
