September 26, 2018
Lagos (INVESTADVOCATE)-Lender Fidelity Bank Plc said on Wednesday its pretax profit for the half-year (H1) period ended June 30, 2018 increased 27.3 percent to N13.01 billion from N10.21 billion posted a year ago.
Post-tax profit of the Bank rose 31.1 percent to N11.84 billion from N9.03 billion reported the same period of 2017.
Gross earnings of Fidelity Bank surged from N85.82 billion in the H1 period of 2017 to N88.91 billion declared the review period of 2018; indicating a rise of 3.6 percent, the lender said in a filing with the Nigerian Stock Exchange (NSE).
Commenting on the results, Fidelity Bank CEO, Mr. Nnamdi Okonkwo attributed the impressive performance to the disciplined approach in managing the balance sheet growth of the bank, it’s strategic cost containment initiatives; focused attention to chosen business segments and determined execution of its retail and digital banking strategy.
He stated that “Gross earnings, net fee and commission income all grew primarily due to the increase in transactional activities. Our digital banking initiative continues to gain traction with almost 40 percent of our customers now enrolled on our mobile/internet banking products and over 80 percent of total transactions now done on our digital platforms”.
As shown in recent years, Fidelity Bank’s retail digital banking strategy has continued to positively impact the business. This was again evident in the HI 2018 results as savings deposits increased by 10.6 percent to N197.5 billion. “The bank is on track to achieving a 5th consecutive year of double-digit savings growth. Low cost deposits now account for 73.8 percent of total deposits” he explained further.
Although Total Operating Expenses grew by 5.7 percent to N32.7bn, Okonkwo maintained that the bank’s cost to income ratio remained relatively stable at 67.7 percent when compared to 67.5 percent reported in the previous year.
This is in spite of the double-digit inflationary environment in Nigeria. With regulatory ratios such as the Capital Adequacy Ratio at 17 percent, Liquidity Ratio at 33.2 percent, well above required threshold, Okonkwo was optimistic that the bank will sustain this sterling performance in the second half of the year,” the lender said in a statement.