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Fidelity Bank Announces 33% Increase In Net Profit

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Plc has announced a 33% growth in gross profit for half-year period that ended in 2020.

Fidelity Bank Announces 33% Increase In Net Profit
Fidelity Bank Announces 33% Increase In Net Profit

In its audited half-year results released on the Nigerian Stock Exchange, the bank said its profit before tax grew from N9.8 billion in 2019 to N12.0 billion and net profit grew from N8.5 billion to N11.3 billion.

The bank’s total assets were also reported to have grown by 13.7 percent from N2.1 trillion in 2019 to N2.4 trillion whilst total deposits rose by 14.8 percent from N1.2 trillion to N1.4trillion during the same period.

Savings deposits increased by 32.2 percent to N363.9 billion, accounting for 49.1 percent of the total growth in customers deposits and represented 25.9 percent of total deposits compared to 22.5 percent in full-year 2019.

Commenting on the results, Nnamdi Okonkwo, Fidelity Bank CEO, said the performance for the period reflects the resilience of the bank’s business model.

“Due to the global and domestic headwinds witnessed in H1 2020, we proactively increased our cost of risk as the impact of the pandemic slowed down economic activities whilst adapting our business model to the new risks and opportunities of the new normal” he stated.

According to him, Fidelity Bank, re-stated its H1 2019 figures from N15.1 billion to N9.8 billion to reflect the impact of IFRIC 21- levies, which was adopted for the first time on the H1 2020 financials.

“The key impact of IFRIC 21 was that our 2020FY AMCON cost was recognized 100% in our H1 2020 accounts rather than been amortized over 12 months as was done previously on our financials,” Okonkwo said.

He explained that without implementing IFRIC 21, the profit for the period would have been N17.9 billion compared to the N15.1 billion reported in the first half of 2019.

The bank said 87.3 percent of its customers are now carrying out transactions on its digital platforms; up from 82 percent in full-year 2019 while 51.2 percent of customers are now enrolled on its mobile/internet banking platforms.

“Though digital banking income dropped by 29.1 percent due to the downward fee revisions for electronic transactions in line with the new bankers’ tariff, we have continued to receive positive reviews on our digital channels.

“IVY, the bank’s chatbox is rated as the clear leader, among virtual assistants in the industry, just as our flagship instant banking product (*770#) was also rated in the top tier category in the recently released 2020 KPMG Digital Channels Scorecard.”

The bank said non-performing loans increased to 4.8 percent from 3.3 percent in full-year 2019; a reflection of the impact of the COVID-19 pandemic.

Regulatory ratios, it said, remained above the required thresholds with capital adequacy ratio increasing to 18.8 percent from 18.3 percent while liquidity ratio stood at 32.1 percent.

Okonkwo said the bank’s management will continue to monitor and manage any “evolving risks” as the economy gradually reopens and economic activities pick-up.

Adelowo Adegboyega
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