Fidelity Bank Plc its bottom-line by 23.5 per cent to cross the N20 billion mark in the third quarter, putting the commercial bank on a stronger footing for better returns for the 2018 business year.
Fidelity Bank’s share price rose by 4.50 per cent to N2.09 at the announcement of the results at the Nigerian Stock Exchange (NSE) at the weekend, the highest price gain in the banking sector.
Key extracts of the interim report and accounts of Fidelity Bank for the nine-month period ended September 30, 2018 showed that profit before tax rose from N16.24 billion in third quarter 2017 to N20.06 billion in third quarter 2018. After taxes, net profit rose from N14.45 billion to N17.86 billion. Gross earnings had risen from N130.07 billion to N139 billion.
The balance sheet showed that total assets grew by 21.9 per cent to N1.68 trillion in 2018 compared with N1.38 trillion recorded in comparable period of 2017. Total deposits; a measure of customer confidence, also increased by 27.3 per cent to close third quarter 2018 at N986.8 billion as against N775.3 billion in corresponding period of 2017.
Despite inflationary trend, the bank’s expenses grew by 6.5 per cent to N50.6 billion due to increased technology investment and higher charges due to the Asset Management Corporation of Nigeria (AMCON). However, cost to income ratio remained relatively stable at 68.4 per cent in September 2018 compared with 67.5 per cent at the beginning of the year. Non-performing Loans (NPLs) ratio improved to 6.0 per cent as against 6.4 percent at the beginning of the year. Other regulatory ratios remained above the required thresholds with Capital Adequacy Ratio (CAR) at 17.0 per cent and Liquidity Ratio at 38.3 per cent.
Chief Executive Officer, Fidelity Bank Plc, Mr Nnamdi Okonkwo, said the has continued to grow its market share by achieving significant traction across its business segments of corporate, commercial, Small and Medium Enterprises and digitally led retail banking.
“We are delighted with our nine-month financial performance as we continue execution of our medium-term strategy, which has further yielded positive results, leading to impressive growths across key performance indices including profitability, total deposits and balance sheet size,” Okonkwo said.