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Fidelity Bank grows profits by 30.6% to N25bn

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FIDELITY Bank Plc has said that its profit before tax (PBT) grew by 30.6 percent to N25.1 billion in the financial year ended December 31, 2018 from N19.2 billion in the previous year.

The bank disclosed this in a statement released on Friday to announce its performance for the 2018 financial year.

The statement shows that the bank recorded 4.8 percent  growth in gross earnings from N180.2 billion to N188.9 billion while profit after tax grew by 29 percent  from N17.7 billion in 2017 to N22.9 billion in 2018, whilst operating income rose by 13.9 percent  from N85.9 billion to N97.2 billion. Customer deposit, which is a measure of consumer confidence rose by 26.3 percent from N775.2 billion  to N979.4 billion just as total assets grew by 24 percent  from N1.4 trillion to N1.7 trillion.

People waiting at Fidelity Bank’s Automated Teller Machine [ATM] gallery along Rumuola Road, Port Harcourt weekend. Photo: Nwankpa Chijioke
In other indices, Non-Performing Loans (NPLs) Ratio dropped to 5.7 percent from 6.4 percent in the 2017 full year (FY) due to a combination of recoveries, loan write-offs and the absolute growth in the loan book. Other regulatory ratios remained above the required thresholds with Capital Adequacy Ratio (CAR) at 16.7 percent and Liquidity Ratio at 39.0 percent.

Buoyed by the strong results, the bank is proposing a N3.2 billion payout which translated to11 kobo dividend to shareholders.

Fidelity Bank rewards savings culture with N13m

Commenting, Fidelity Bank Chief Executive Officer, Nnamdi Okonkwo, said, “We are delighted by our 2018 numbers, which clearly shows a sustained performance trajectory. We are growing our market share with continued traction in our chosen business segments. We recoded double digits growth in interest income on our liquid assets, digital banking, FX and other income lines.”

As seen in recent years, the bank’s digital retail banking approach has continued to yield positive results. Savings recorded its 5th consecutive year of double digit growth with a 27.7 percent increase to peak at N228 billion.  ”Savings accounts for over 23 percent of our total deposits, an attestation of our increasing market share in the retail segment”, he stated.

Okonkwo was also stated that over 42 percent of customers are now enrolled on the bank’s mobile/ internet banking products and more than 81 percent of total transactions done on digital platforms, resulting in 25 percent  of fee-based income, coming from digital banking.

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