FIDELITYBK Announces 11.0% Growth in Gross Earnings to N106.6 billion and PBT of N13.8 billion.


Friday, October 30, 2015 11:52AM / Press Release/ Fidelity Bank Plc

Financial Highlights

•           Gross Earnings increased by 11.0% to N106.6bn from N96.0bn in 9M 2014

•           Net Fee Income increased by 7.7% to N21.4bn from N19.9bn in 9M 2014

•           Operating Income increased by 9.7% to N62.0bn from N56.5bn in 9M 2014

•           Total Expenses increased by 10.3% to N44.8bn from N40.6bn in 9M 2014

•           Profit before Tax increased by 3.0% to N13.8bn from N13.4bn in 9M 2014

•           Profit after Tax increased by 1.8% to N11.4bn from N11.2bn in 9M 2014

•           Net Loans increased by 1.1% to N547.7bn from N541.7bn in Dec 2014

•           Deposits declined by 6.6% to N765.8bn from N820.0bn in Dec 2014

•           Total Equity increased by 4.2% to N180.3bn from N173.1bn in Dec 2014

•           Total Assets declined by 2.3% to N1,159.2bn from N1,187.0bn in Dec 2014


Nnamdi Okonkwo, Managing Director and CEO of Fidelity Bank Plc commenting on the results, stated that:
“Business operations during the quarter was challenging due to a number of factors; the difficult operating environment, the tight monetary policy stance, implementation of the Treasury Single Account (TSA) and currency devaluation concerns which culminated into negative earnings headwinds in the banking industry.

Despite these challenges, we continued with the disciplined execution of our medium term strategy. Profit before Tax (PBT) increased to N13.8bn despite the decline in our total assets due to the TSA implementation.

We are pleased with the resilience of our business model which resulted in a year-on-year (y-o-y) growth in both fund and fee based income resulting in a 3% growth in profitability.

Net Interest Income increased by 10.8% y-o-y to N40.6 billion but declined by 4.8% q-o-q due to the reduction in our earning assets. We continued to increase yields on earning assets faster than the growth in funding costs, which improved our NIM to 6.9% in Q3, 2015 placing us closer to our 2015 target of 7.0%.

Net Fee Income increased by 7.7% y-o-y to N21.4 billion but declined by 4.2% q-o-q due to lower FX Income on the back of trading restrictions in the market.

Our retail strategy continued to deliver increased revenues as electronic banking income increased by 128.4% y-o-y to N4.5 billion and 115.4% q-o-q, this was driven by the deployment of a new online banking application, increased migration of customers to our alternate channels and an increase in international card transactions.

Total Expenses grew by 10.3% y-o-y to N44.8 billion and 6.3% q-o-q driven by the following cost lines; staff remuneration, regulatory costs (NDIC/AMCON) and branding/advertisement costs. Cost-Income Ratio declined to 71.6% in 9M 2015 from 74.2% in the 2014FY as revenue growth outpaced the increase in operating cost.

Net Loans grew marginally by 1.1% YTD to N547.7 billion but declined by 4.4% q-o-q driven by customer pay-downs due to the re-alignment of their business model and a cautious approach to asset creation in line with the weaker macro environment. Cost of Risk is 1.0% while we improved our coverage ratio. NPL Ratio remained within our guidance at 3.7%.

Total Deposits declined by 6.6% YTD to N765.8 billion and 3.9% q-o-q due to regulatory initiatives e.g. the implementation of the Treasury Single Account (TSA) which impacted our deposit base by about N75bn during the quarter.

On September 3, 2015 we unveiled our new corporate identity that portrays our positive personality with a view to helping us stand-out in a very competitive market. Our new corporate identity is inspired by our past with our eyes set on the future and always staying true to our vision.

Our new identity comes with a renewed brand promise “your aspiration may prove to be a tough job but someone’s got to do it”


Related NEWS­

1.       FIDELITYBK Records 12% Below Forecast in PBT; Shares Rated NEUTRAL

2.      FIDELITYBK declares N11.45 billion PAT in Q3 '15 Result,(SP:N1.38k)

3.      FIDELITYBK The fabulous rally is on the cards

4.      FIDELITYBK Appoints Adeyeye Olawale Adepegba Nneka Chinwe Onyeali-Ikpe as Executive Directors

5.      FIDELITYBK Good risk and reward ratio for buyer just buy it

6.      Fidelity Bank Q2 2015 results - Better-than-expected Q2 2015  

Related News