Fidelity Bank Plc has posted a profit before tax (PBT) of N20.6 billion for the six months ended June 30, 2021, the lender’s audited half-year (H1) results released to the Nigerian Exchange (NGX) Limited on Sunday showed.
The Managing Director/Chief Executive Officer of Fidelity Bank, Nneka Onyeali-Ikpe, in the H1 results, said that the bank’s PBT represented a 72.4 per cent growth when compared to N12.0 billion recorded in the comparative period of 2020.
She added that profit after tax (PAT) rose to N19.31 billion from N11.30 billion recorded in the corresponding period.
She said the growth was on the back of increased customer transactions and improved operational efficiency.
“We sustained our impressive financial performance with double-digit growth in profit as increased customer transactions drove non-interest revenue while improved operational efficiency continued to moderate cost-to-serve,” she said.
Onyeali-Ikpe further stated that the financial results for the period showed that Gross Earnings climbed by 6.2 per cent Year-on-Year (YoY) to N112.3 billion, with Non-Interest Revenue (NIR) increasing by 27.8% to N23.8 billion from N18.1 billion in H1 2020.
She added that the bank’s NIR was boosted by high growth in commission on banking services (57.7%), account maintenance charges (50.6%), digital banking income (49.4%), and trade income (33.7%), among other things.
Total customer-induced transactions climbed by 58.0 per cent year over year and 21.2 per cent quarter over the quarter across all distribution channels.
The bank showed a strong desire to assist the real sector, raising net loans and advances by 15.8% YTD to N1.53 billion from N1.32 billion in 2020FY.
However, the actual growth was 14.7 per cent while the impact of the currency adjustment (2020FY: N400.3/dollars-H1 2021: N410.6/dollars) accounted for a 1.1 per cent YTD growth in the loan book. Cost of risk came in at 0.3 per cent and the NPL ratio (stage 3 loans) dropped to 2.8 per cent from 3.8 per cent in 2020FY.
Other regulatory ratios remain well above the minimum requirement: capital adequacy ratio at 18.8 per cent from 18.2 per cent in 2020FY.
Total Deposits increased by 16.5 per cent YTD to N1.98 billion from N1.69 billion in 2020FY, driven by increased deposit mobilisation across all deposit types.
“Digital Banking gained further traction as we now have 55.1 per cent of our customers enrolled on the mobile/internet banking products and 89.3 per cent of customer-induced transactions were done on digital platforms.”
She also explained that the bank’s foreign currency deposits increased by 23.1 per cent YTD to 149 million dollars and now accounted for 18.5 per cent of total deposits from 17.5 per cent in 2020FY.
According to her, this is as the bank continues to harness the benefits of its renewed drive in the diaspora banking space.
“We look forward to sustaining the current momentum in H2 by optimising our balance sheet and lowering our cost–to–serve.
“This will translate to improved earnings while we remain committed to our medium to long-term strategic objectives,” Onyeali-Ikpe said.
Copyright: News Central TV
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.