From Kunle Aderinokun in Abuja, 08.17.2010
Fidelity Bank Plc has said, its profitability increased at the end of its financial year-ended December 2009, despite decline in gross earning, as a result of cost-saving measures put in place by the management of the bank.
Chairman of the bank, Chief Christopher Ezeh, told shareholders that the decline in gross revenue was due to the slowdown experienced in all segments of the bank’s business, particularly the credit market where the bank had to reappraise its lending structures in compliance with new thresholds in regulatory standards.“This performance, though modest, is a demonstration of the success of our cost management strategy which emphasises a low-cost operation model in the face of shrinking revenue flow and strict loan provisioning,” he said.
Ezeh put the gross earning of N34.72 billion for a six-month period from July and December 2009.The half year result, he noted, was announced in line with the Central Bank of Nigeria’s new directive, which aligns all banks to a common year end- that is, January to December. He explained that on an annualised basis, the gross earning showed a decrease of 3.91 per cent when compared with the N72.27bn announced for the full financial year ended on June 30, 2009.
“On the earning side, our bank posted N1.75bn in profit attributable to shareholders, in contrast to the N1.83bn recorded at the end of 2008/2009 financial year in June. However, the annualised December 2009 figure shows 73 per cent increase over the 12 months full year figure in June,” he added