| Corporate Results |    4774 VIEWS  |
| Corporate Results | |
| 4774 VIEWS | |
 |
Thursday, October 25, 2018 / 08:57PM / NSE
Nnamdi Okonkwo, MD/CEO of Fidelity Bank Plc
commenting on the results, stated that:
“We are delighted with our 9M 2018 Results which
showed strong double-digit growth in Deposits, Revenues and Profitability. We
continued to increase our market share driven by significant traction in our
chosen business segments. We were able to sustain our performance trend on a
y-o-y basis through the following: disciplined balance sheet growth, increased
focus on the Corporate|Commercial|SME segments and continued execution of our
retail and digital banking strategy.
Gross earnings increased y-o-y by 6.9% to close at
N139.0 billion primarily driven by the growth in earning assets by 19.2% which
led to a 9.1% increase in interest income to N120.4 billion. Net Fee income
declined by 8.7% y-o-y to N15.7 billion. We reclassified N7.2 billion from
non-interest income to interest and similar income in Q3 2018 after a review of
the underlying transactional income with our Auditors.
Digital Banking continues to gain traction with
over 40% of our customers now enrolled on the mobile/internet banking products
and over 80% of total transactions are now done on our digital platforms.
NIM remained resilient at 6.7% despite the
reduction in yields on earning assets. Though the decline in yields on earning
assets outpaced the drop in funding costs, NIM still remains within our
guidance for the year. Our average yield on earning assets stood at 13.8%
compared to an average funding cost of 6.2%.
Despite the double digit inflationary environment,
expenses grew by 6.5% to N50.6 billion due to increased technology investment
and higher AMCON Charges. Our cost to income ratio remained relatively stable
at 68.4% compared to 67.5% in the 2017FY. The strong double digit revenue
growth of N6.9 billion (10.8% growth) and the moderate growth in total expenses
by N3.1 billion (6.5%) translated to a N3.8 billion (23.6%) increase in Profit
Before Tax (PBT) to N20.1 billion from N16.2 billion in 9M 2017.
Total deposits increased by over N211.6 billion
(27.3%) to N986.8 billion from N775.3 billion as we recorded strong
double-digit growth on all the deposit products (Demand|Savings|Time) whilst
lowering funding costs. Our retail banking strategy continued to deliver
impressive results as savings deposits increased by 12.9% to N201.7 billion
leading to the 5th consecutive year of double-digit savings growth. Low cost
deposits now account for 73.6% of total deposits.
Risk assets increased by 8.0% to N830.4 billion
from N768.7 billion in the 2017FY. Cost of risk declined to 0.5% from 1.5% in
the 2017FY due to impairment charges passed through equity on IFRS 9 adoption
and reduced impairment charges in the telecommunications and downstream
sectors. Non-performing Loans (NPLs) Ratio improved to 6.0% from 6.4% in the
2017FY despite a 3.4% growth in the absolute NPL numbers with the NPL coverage
ratio at 109.9%.
Other regulatory ratios remained above the required
thresholds with Capital Adequacy Ratio (CAR) at 17.0% and Liquidity Ratio at
38.3%.
We remain focused on the execution of our medium
term strategic objectives and targets for the 2018FY while we look forward to
sustaining the momentum and delivering another strong set of results for the
2018FY”
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3. Fidelity Bank Plc H1 2018 Conference Call and Earnings Presentation - The Key Takeaways
4. Fidelity Bank H1''18 Results - Lower Impairments; Higher Non-Interest Income Propels Earnings
5. Fidelity Bank Shares Have Declined by -30.9% YTD, Underperforming The NSEASI by 17%
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