Fidelity Bank Plc says it recorded N23.1 billion Profit After Tax (PAT) in the first half of 2021.
The PAT which is contained in its unaudited half-year financials sent to the Nigerian Stock Exchange (NGX) Limited represents a 20.72% Year on Year (YoY) growth.
OduNews analysis of the report shows that the bank’s gross earnings rose by 37.87% to N154.843 billion from N112.304 billion reported in 2021, driven by a 50% growth in net interest income.
Profit before tax stood at N25.079 billion from N20.628 billion posted in 2021, representing a growth of 21.57%.
Interest and similar income using the effective interest rate method rose by 48.45% from N 85.090 billion recorded in the first quarter (Q1) of 2021 to N 126.348 billion in the period under review.
Based on the result the Board of Directors under the powers vested in it by Section 426 of the Companies and Allied Matters Act (CAMA 2020), proposed an interim dividend of 10 Kobo per share amounting to N2,896,258,569.20 from Retained Earnings as of 30 June 2022.
This will be presented for ratification by Shareholders at the next Annual General Meeting. Payment of the interim dividend is subject to withholding tax at the applicable rate of 10% which will be deducted before payment.
The bank’s Profit before income tax for Q1’2022 had inched slightly up by 1.9% from N10.134 billion in Q1 2021 to N10.324 billion.
Profit after tax stood at N9.515 billion, almost the same amount, as N9.590 billion realised in the corresponding quarter of 2021.
Speaking on the bank’s performance, the MD/CEO, Fidelity Bank Plc Nneka Onyeali-Ikpe noted that prominence was given to digital banking by promoting new initiatives in the bank’s retail business and enhancing existing digital banking products.
She added, “We now have 56.0% of our customers enrolled on the mobile/internet banking products and 90.0% of total customer-induced transactions done on digital platforms with digital banking business contributing 27.6% to net fee income.
“We now have 56.0% of our customers enrolled on the mobile/internet banking products and 90.0% of total customer-induced transactions done on digital platforms with digital banking business contributing 27.6% to net fee income.”
Fidelity Bank’s interest income after credit loss expense rose to N73.648 billion from N47.992 billion in 2021. This is as the bank’s fee and commission income hit N16.084 billion in 2022 from N12.726 billion in 2021.
The fee and commission expense stood at N6. 026 billion as against N3.309 billion in 2021 while the income tax expense increased to N1.772 billion in 2022 from N1.322 billion in 2021.
