| Corporate Results |    4715 VIEWS  |
| Corporate Results | |
| 4715 VIEWS | |
 |
Friday March 29, 2019 / 9:40 AM / NSE
With Additional Comments From FBNQuest Research
Initial Reaction - FBNQuest
Implications
Fidelity Bank’s FY2018 PBT surprised negatively
relative to consensus forecast of N26.5bn. Relative to our forecast, PBT also
came in well behind our N27.4bn estimate. The bank’s PAT of N20.7bn implies a
2018 ROAE of 10.5%, which is in line with management’s guidance of 10.0%.
Positives
Q4 2018 PBT grew 69% y/y to N5.0bn, mainly driven by a
-77% y/y reduction in loan loss provisions. Non-interest income also advanced
by 35% y/y and surprised positively (+166%) relative to our forecast. The
bank’s loan loss provisions of N4.2bn for 2018 implies a cost of risk of
0.5%, in line with our 0.5% forecast and well below management’s guidance of
1.25%.
Negatives
Funding income declined by -20% y/y, largely a
reflection of lower yields on earning assets. It missed our forecast by 41%.
Management has proposed a dividend per share of N0.11,
much lower than our N0.25 dividend forecast (N0.18 consensus) and implies a yield
of 4.9%.
Year-to-date, Fidelity shares have outperformed the
ASI. The shares have gained +11.3% compared with the -1.9% return
delivered by the NSE ASI.
We rate the stock Neutral. Our estimates are under review.
Fidelity Bank Q4 2018 results: actual vs. FBNQuest Capital Research estimates (N millions)
Related News
1. FIDELITYBK Declares N17.86 billion PAT in Q3'18
Results (SP:N2.00k)
2. Q3 2018 Accounts - Fidelity Bank Plc Announces
Closed Period From Oct 19, 2018
3. Fidelity Bank
Launches GAIM Season 3 Promo to Boost Savings Culture in Nigeria
4. Fidelity Bank Plc H1 2018 Conference Call and
Earnings Presentation - The Key Takeaways
5. Fidelity Bank H1''18 Results - Lower
Impairments; Higher Non-Interest Income Propels Earnings
6. Fidelity Bank Shares Have Declined by -30.9%
YTD, Underperforming The NSEASI by 17%
7. FIDELITYBK Declares N11.84bn PAT in Q2 2018
Results,(SP:N1.65k)
8. Fidelity Bank, BOI, Ford Foundation Unveils
Lending Scheme for Aba Leather Manufacturers
9.
Fidelity Bank Partners with World Remit for Instant Money
Transfers to Nigeria
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