Wednesday, May 03, 2017 6:05 PM/ Proshare Markets
Fidelity Bank Plc today held its Q1’17 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.
The bank started the year on a strong note as its Gross earnings increased by 18.8% YoY to N40.8 billion. This was driven by a combination of increased yields on earning assets and an absolute growth in the volume of earning assets which led to a 24.1% YoY growth in interest income. Also, its total interest income moved up by 24.1% to N36.2bn compared to N29.2bn in Q1 2016.
The double-digit growth in interest income on loans and liquid assets reflected the higher interest rate environment witnessed in Q1 2017 as interest income on loans remains the key revenue growth line contributing the largest growth to total income in absolute terms.
The bank’s E-banking income dropped by 21.2% YoY. This was largely driven by the stoppage of international transactions on its naira denominated cards. Despite this, it still witnessed significant growth on other E-banking products which grew by over N0.8 billion in Q1 2017.
The bank’s cost optimization initiatives continued to deliver cost savings as total operating expenses declined by 10.4% YoY to N14.4 billion which was driven by a decline in over 60% of its operating expense lines in Q1 2017 with staff cost, depreciation, regulatory cost and technology accounting for about 80% of the decline.
The bank’s deposits increased by 0.9% YTD to N800.2 billion due to 5.6% (N8.7 billion) and 0.4% increase in savings and demand deposits respectively while its net loans and advances increased by 1.7% YTD to N730.4 billion as the bank remained cautious of increasing its exposure in selected sectors of the economy.
In a nutshell, below are the key takeaways from the Q1’17 earnings presentation made by the bank management;
- The bank plans to audit its Half Year 2017 Financial Results as a way of improving its processes.
- The bank is exposed to Etisalat and it is currently in talks with the telecoms company. An update will be given at the end of the discussion.
- In line with its FY 2017 guidance, the bank’s growth expectations on key indicators like Net Interest Margin, Tax rate, Cost to Income Ratio, Proposed Dividends, NPL Ratio and ROE are on track.
1. Fidelity Bank Plc Grew PBT by 21% YoY in Q1 2017
2. FIDELITYBK declares N4.32 billion PAT in Q1 2017 Results,(SP:N0.83k)
3. Fidelity Bank Plc Announces Filing of its 2016 Audited Financial Statement
4. Fidelity Bank Plc Records Marked Reductions in Loan Loss Provisions in Q4 2016 Results
5. FIDELITYBK declares N9.73 billion PAT in 2016 Audited Results; Proposes 14k Dividend, (SP:N0.84k)
6. Fidelity Bank Plc is Maintaining Underperform Rating on Weak Q3’16 Results
7. Fidelity Bank Q3'16 Earnings Presentation: The key takeaways
8. FIDELITYBK declares N8.75 billion PAT in Q3'16 Result,(SP:N0.85k)
9. Fidelity Bank Plc Reports Q3'16 Results as PAT Declines by 65% Yoy
10. Fidelity Bank Plc Appoints New Board Chairman and Two Non-Executive Directors
11. FIDELITYBK declares N8.75 billion PAT in Q3'16 Result,(SP:N0.85k)
12. Fidelity Bank Plc Reports Q2 2016 Results; Shares Rated Underperform
13. FIDELITYBK declares N5.59 billion PAT in Q2 16 Result SP N1.23k
14. Fidelity Bank Plc Board of Directors Appoints Mr. Seni Adetu As An Independent Director
15. FIDELITYBK Downgraded from Neutral to Underperform on weak Q1 16 Results
16. Fidelity Bank Appoints Alhaji Mohammed Lawal Balarabe as Ag. Managing Director
17. Fidelity Bank Q1 2016 Expect negative reaction to 15 decline in PBT
18. FIDELITYBK Declares N3.58 billion PAT in Q1 2016 Result,(SP:N1.17k)
19. Fidelity Bank Cooperates With the EFCC over Transaction Investigations
20. FIDELITYBK: Q4 2015 boosted by tax and OCI
21. FIDELITYBK Records 89% PBT Decline in Q4’15 Results; Shares Rated Underperform