Fidelity Bank Plc at the weekend announced it recorded a profit before tax (PBT) of N20.6 billion for the six months ended June 30, 2021.
Managing Director/Chief Executive Officer of Fidelity Bank, Mrs Nneka Onyeali-Ikpe, disclosed this in the bank’s unaudited half-year (H1) results released to the Nigerian Exchange (NGX) Limited in Lagos.
Onyeali-Ikpe 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 of last year.
Onyeali-Ikpe said the growth was made possible by 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.
The Fedelity Bank chief, also noted that the financial result for the period indicated that Gross Earnings increased by 6.2 per cent Year-on-Year (YoY) to N112.3 billion on account of 27.8 per cent growth in Non-Interest Revenue (NIR) to N23.8 billion from N18.1 billion in H1 2020, adding that this was driven by strong growth in commission on banking services by 57.7 per cent, account maintenance charges by 50.6 per cent, digital banking income by 49.4 per cent and trade income by 33.7 per cent among others.
Similarly, she stated that total customer induced transactions across all distribution channels increased by 58.0 per cent YoY and 21.2 Per cent QoQ.
Meanwhile Fidelity Bank according to the result showed a good appetite in funding the real sector with net loans and advances increasing by 15.8 per cent YTD to N1.53 billion from N1.32 billion in 2020FY.
However, the bank’s 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 stayed well above the minimum requirement, with 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 stated.