Bank Sustains Growth Trajectory as Profits Soar by 27%, Gross Earnings now N88.9bn
By Nsikan Ikpe
Underscoring the continuing shift to the e-commerce platform in Nigeria, Fidelity Bank Plc has revealed that as much as 80 percent of its transactions are now digital.
This is even as the bank is posting very impressive half year results for 2018, in which it recorded double-digit growth in key revenue lines.
Details of the audited half year results, for the period ended June 30, 2018, released at the Nigerian Stock Exchange (NSE) showed a 27.3 percent jump in Profit Before Tax (PBT) from N10.2b in the previous period to N13 bn in the reporting period. Profit After Tax (PAT) rose by 31 percent to close at N11.8 billion from N9.03 billion recorded in 2017, whilst gross earnings rose by 3.6 percent from N85.8 bn to N88.9bn.
In other indices, Total Assets grew by 13.7 percent to N1,567.6 bn from N1,379.2 bn in the previous period. Total Deposits; a measure of customer confidence, increased by 19.7 percent to close at N927.9 bn from N775.3 bn in 2017
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% to N197.5 bn. “The bank is on track to achieving a 5th consecutive year of double-digit savings growth. Low cost deposits now account for 73.8% of total deposits” he explained further.
Although Total Operating Expenses grew by 5.7% to N32.7 bn, Okonkwo maintained that the bank’s cost to income ratio remained relatively stable at 67.7% when compared to 67.5% 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%, Liquidity Ratio at 33.2%, 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 serviced across its 240 business offices and various digital banking channels. The bank which is focused 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.
Mr. Nnamdi Okonkwo, Fidelty Bank CEO