- As company’s gross earnings hit N88.9bn, digital retailing rose to 80%
An audited half year results for the period ended June 30, 2018 released by Fidelity Bank Plc at the Nigerian Stock Exchange (NSE) on Wednesday shows a double-digit growth in the bank’s key revenue lines.
The bank’s financial statements shows a 27.3% jump in Profit Before Tax (PBT) from N10.2 billion in the previous half year to N13 billion in the reporting period; and Profit After Tax (PAT) rising 31% to close at N11.8 billion from N9.03 billion recorded in 2017, with gross earnings rising by 3.6 percent from N85.8 billion to N88.9 billion on increased “transactional activities.”
“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,” CEO of the bank, Nnamdi Okonkwo said.
While the bank’s total assets grew 13.7% to N1.57 billion from from N1.38 billion in in 2017, total deposits rose 19.7 percent to close at N927.9 billion from N775.3 billion in 2017 and the bank’s savings deposits increased 10.6% to N197.5 billion.
“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,” Okonkwo said.
The bank’s total operating expenses however grew 5.7% to N32.7 billion while it’s cost to income ratio remained relatively stable at 67.7% when compared to 67.5% reported in the previous year, 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 said he’s optimistic that the bank will sustain this “sterling performance” in the second half of the year.
Fidelity Bank is a commercial bank operating in Nigeria with over 4 million customers who are serviced across its 240 business offices and various digital banking channels.