Fidelity Bank Plc grew profit before tax by 72.4 per cent in the first half (H1) of 2021.
The bank’s results released on the Nigerian Exchange (NGX) Limited at the weekend showed a strong financial performance in the period under review.
Details of the unaudited results showed that its gross earnings rose by 6.2 per cent to N112.304 billion as against N105.755 billion. Similarly, net interest income in the period increased from N48.320 billion in the H1 2020, to N50.297 billion at the end of June 2021.
Profit before tax stood at N20.628 billion higher than N11.963 billion in H1, 2021, while profit after tax grew to N19.306 billion from N11.303 billion. Earnings per share stood at 67 kobo, compared to 39 kobo in 2020.
Speaking on the bank’s performance, managing director/ chief executive officer of Fidelity Bank, Mrs. Nneka Onyeali-Ikpe said, “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 added that “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.”
Further analysis of the results showed that the net loans and advances increased by 15.8 per cent to N1.535.4 trillion from N1.326 billion as at December 2020. 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 2020 full year.
ulatory ratios remain well above the minimum requirement: CAR at 18.8 per cent from 18.2 per cent in 2020 full year.
Total Deposits increased by 16.5 per cent year-to-date to N1.980 trillion from N1.699 trillion in 2020 full year, driven by increased deposit mobilisation across all deposit types.
Total assets for the period stood at N3.110 trillion as against N2.758 trillion as at December 2020, while total equity amounts to N273.372 billion compared to N273.533 billion in 2020 year end.
Onyeali-Ikpe said that “We look forward to sustaining the current momentum in H2, 2021 by optimising our balance sheet and lowering our cost-to-serve which will translate to improved earnings while we remain committed to our medium to long-term strategic objectives.”
Recall that following her assumption of office as the bank’s MD/CEO in January 2021, Onyeali-Ikpe announced a seven-point agenda hinged on innovation, brand refresh, workforce transformation, service excellence, digital transformation, performance discipline and accelerated growth all targeted at propelling the bank to tier one status by 2025.