BY MICHAEL EBOH
Fidelity Bank Plc has announced a profit before tax of N7.67 billion for the 2011 financial year. This, according to a statement by the bank, announcing its year end, December 31, 2011, financial result, represents a decline of 11.3 per cent from N8.65 billion recorded in the 2010 financial year.
The bank’s gross earnings increased by 25 per cent to N70.05 billion compared to N56.05 billion in 2010; Net Interest and Discount Income grew by 9.6 per cent to N29.08 billion from N26.54 billion recorded in 2010.
The bank’s Non-interest Income grew by 41.3 per cent to N21.95 billion from N15.54 billion in 2010, due to the increasing linkage effect from its new branches.
Its operating expenses rose by 30 per cent to N38.88 billion in 2011 from N29.86 billion recorded in 2010.
The increase in its operating expenses, according to the bank, is due to its sustained branch development activity, impact of industry resolution cost which gulped N1.5 billion in 2011, and one-off additional provision of N2.2 billion needed to write up the actuarial valuation of the net present value of future staff retirement benefit obligations preparatory to full compliance with International Financial Reporting Standards (IFRS).
Commenting on the result, Mr. Reginald Ihejiahi, Group Managing Director/Chief Executive Officer, Fidelity Bank, said, “The financial year ended December 31 2011 was an exciting and challenging one for us. We are thrilled by the progress made in improving key operating parameters including gross earnings, deposits and the loan book.
“Our focus on reworking our funding base to a more sustainable and balanced deposit mix, through excellent branch roll-out strategy and increased recruitment of key businesses, has continued to show in strong positive growth in sustainable low cost deposits while expanding the base for non interest income.