Home Business Fidelity Bank Reports Impressive 9 Months Results As Profit Hits 21.3bn.

Fidelity Bank Reports Impressive 9 Months Results As Profit Hits 21.3bn.

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… Disburse over N50bn in intervention funds in 3 months.

Fidelity Bank Plc has continued to sustain its impressive run of financial performance with the strong 3rd quarter results for the year was released at the Nigerian Stock Exchange (NSE).

Details of the results show improvements in key indices though Gross Earnings dropped marginally by 3.7per cent from N161.1billion in 2019 to N155billion.

Profits were however up by 3.6 per cent, closing at a Profit Before Tax (PBT) of N21.3billion whilst Profits After Tax (PAT) rose by seven per cent from N19billion to N20.4billion in the period under review.

In other indices, Customer Deposits, Net Loans and Total Assets grew in double digits. Total Assets grew by 21 per cent from N2.1billion in 2019 to N2.5billion; Customer Deposits were up by 22.3 per cent  from N1.23billion to N1.5billion whilst Net Loans rose by 12 per cent from N1.12billion to N1.27billion to cap the good outing by the top lender.

“Our 9 months results reflect our resilient business model, particularly in a very challenging operating environment. We worked closely with our customers to gradually recover from the economic impact of the pandemic and the attendant effect of the lockdown” said Fidelity Bank CEO, Mr. Nnamdi Okonkwo.

He explained that the drop in Gross Earnings was due to the decline in interest and similar income caused by lower yields and drop in fee income.  “Net fee income declined by N1.3billion largely due to a reduction in FX related income on account of the revaluation gains recorded in H1 2020. Digital Banking however continued to gain traction as we now have 52.3 per cent of our customers enrolled on the mobile/internet banking products from 47.4 per cent in 2019FY and 88.2 per cent of customer-induced transactions are done on digital platforms. Similarly, digital banking income increased by 20 per cent quarter on quarter due to improved adoption by customers and new services migrated to our digital channels” he stated.

Fidelity Bank has over the years implemented a retail digital banking strategy and that has continued to deliver, with the bank on course to achieving the 7th consecutive year of double digits growth. “The growth in Savings Deposits accounted for 40.2 per cent of total growth in in Customer Deposits and Savings Deposits now represent 25.7 per cent of total deposits, up from 22.3 per cent in 2019” he enthused.

He further disclosed that the bank has disbursed over N50billion in intervention funds to customers in the last three months, in critical sectors to kick-start the economy after the lockdown and was quite optimistic about finishing the year strongly. “We will continue to monitor and pro-actively manage evolving risks as business activities improve and look forward to delivering another set of resilient results in the remaining quarter of 2020FY”, Okonkwo noted.

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