Wednesday, May 02, 2018 06:37 PM / Proshare Markets
Fidelity Bank Plc held its FY 2017 and Q1 2018 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.
The bank in its description of the operating environment stated that the MPC maintains CRR at a relatively stable rate of 22.5% in FY2017 and the benchmark rate also retained at 14%. The Naira has also been relatively stable while credit to the private sector foreign reserves and the country’s GDP has been improving.
Fidelity Bank Plc recorded a gross earning of N179.9bn in FY 2017 as against N152.0bn in 2016, up by 18.3% YoY on account of double digit growth across key income lines: trade income (61.6%), account maintenance charge (49.8%), interest income on loans (23.1%), FX Income (20.9%) and interest income on liquid assets (20.4%) while it recorded a gross earning of N43.7bn in Q1 2018 as against N40.8bn in Q1 2017, representing by 6.9% growth YoY.
Profit Before Tax grew by 83.5% from N11.06bn in FY2016 to N20.3bn in FY2017 while the bank recorded N4.98bn in Q1 2018, up by 2.7% from N4.85bn in Q1 2017.
In a nutshell, below are the key takeaways from the FY 2017 and Q1 2018 earnings presentation made by the bank’s management;
1. Its NPL ratio declined to 6.3% from 6.4% in 2017FY due to a 0.7% decline in NPLs coming from largely the downstream and transports sectors.
2. Fidelity’s CAR is now 16% which is above regulatory minimum requirements of 15%. It remained unchanged at 16% in Q1 2018
3. Only 80% of its N30.0 billion local debt is recognized in Tier II Capital. This is expected to drop to 60% in H1 2018
4. The bank is on track in relation to its 2018FY target on NPL ratio, cost of risk and ROE
5. The bank is behind target in relation to its 2018FY target on YTD loan growth and cost to income ratio.
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