Fidelity Bank Grows Profit after Tax by 66% to N9bn in Six Months

THISDAY - - MARKET NEWS -

Share­hold­ers of Fidelity Bank Plc should ex­pect a boun­teous har­vest at the end of the cur­rent year given its im­pres­sive per­for­mance for the half year (H1) ended June 30, 2017.

The re­sults re­leased to the Nige­rian Stock Exchange (NSE) yes­ter­day showed that Fidelity Bank Plc posted gross earn­ings of N85.8 bil­lion in H1 of 2017, up 22 per cent from N70.2 bil­lion recorded in the cor­re­spond­ing pe­riod of 2016. In­ter­est in­come grew by 27.8 per cent, while in­ter­est ex­penses grew faster by 48 per cent to hit N38.2 bil­lion com­pared with 25.7 bil­lion in 2016. As a re­sult, net in­ter­est in­come stood at N34.7 bil­lion in 2017 com­pared with N31.2 bil­lion, in­di­cat­ing a rise of 11 per cent. Im­pair­ment charges re­mained flat at N4.8 bil­lion in 2017 as against N4.79 bil­lion in 2016.

De­spite the high in­fla­tion­ary trend, the bank re­duced op­er­at­ing ex­penses by 1.7 per cent to N30.9 bil­lion, from N31.4 bil­lion in the cor­re­spond­ing pe­riod of 2016.

Con­se­quently, profit be­fore tax (PBT) rose by 66.6 per cent to N10.2 bil­lion, from N6.131 bil­lion in 2016, while profit after tax (PAT) im­proved by 65.6 per cent from N5.457 bil­lion to N9.04 bil­lion in 2017. Earn­ings per share sim­i­larly im­proved to 31 kobo as against 19 kobo in 2016.

When the Fidelity Bank opened the 2017 with sim­i­lar dou­ble digit growth in the first quar­ter, its man­ag­ing di­rec­tor/CEO, Mr. Nnamdi Okonkwo had at­trib­uted the per­for­mance to the dis­ci­plined ex­e­cu­tion of its medium-term strat­egy and a busi­ness model that en­ables the bank to con­tinue to de­liver im­proved per­for­mance in line with its 2017 fi­nan­cial year tar­gets.

“Gross earn­ings growth was driven by a com­bi­na­tion of in­creased yields on earn­ing as­sets and an ab­so­lute growth in the vol­ume of earn­ing as­sets which led to growth in in­ter­est in­come” he had said.

Speak­ing on the cost ef­forts to re­duce costs, he said the cost op­ti­mi­sa­tion ini­tia­tives con­tin­ued to de­liver cost sav­ings.

“We will con­tinue to op­ti­mise our cost pro­file with­out im­pact­ing ser­vice de­liv­ery through the dis­ci­plined ex­e­cu­tion of the ini­tia­tives from our re­cently com­pleted busi­ness op­ti­mi­sa­tion project,” Okonkwo had as­sured.

Mean­while, trad­ing at the stock mar­ket closed on bear­ish note yes­ter­day for the third con­sec­u­tive day as profit tak­ing ac­tiv­i­ties con­tin­ued.

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