In the first half of 2021, Fidelity Bank Plc increased earnings before taxes by 72.4 per cent.
The bank’s reports, which were issued over the weekend on the Nigerian Exchange (NGX) Limited, revealed a solid financial performance in the time under review.
According to the unaudited data, gross earnings increased by 6.2 per cent to ₦112.304 billion from ₦105.755 billion. In the same way, net interest income climbed from ₦48.320 billion in the first half of 2020 to ₦50.297 billion by the end of June 2021.
Profit before tax increased to ₦20.628 billion from ₦11.963 billion in the first half of 2021, while profit after tax increased to ₦19.306 billion from ₦11.303 billion. Earnings per share were 67 kobo in 2018, up from 39 kobo in 2020.
“We sustained our impressive financial performance with double-digit growth in profit as increased customer transactions drove non-interest revenue while improved operational efficiency continued to moderate cost-to-serve,” said Mrs Nneka Onyeali-Ikpe, managing director/chief executive officer of Fidelity Bank.
She added that “digital banking gained further traction as we now have 55.1 per cent of our customers enrolled on the mobile/internet banking products and 89.3 per cent of customer-induced transactions were done on digital platforms”.
Further study of the data revealed that net loans and advances grew by 15.8% to ₦1.535.4 trillion in December 2020, up from ₦1.326 billion in December 2019. The cost of risk was 0.3 per cent, while the NPL ratio (Stage 3 Loans) was 2.8 per cent, down from 3.8 per cent in the full year of 2020.
Circulatory ratios are still far above the minimal requirement: CAR is 18.8%, up from 18.2% in the entire year of 2020. Total deposits have climbed by 16.5% year-to-date to ₦1.980 trillion, up from ₦1.699 trillion in the entire year of 2020, owing to higher deposit mobilization across all account kinds.
“We look forward to sustaining the current momentum in H2, 2021 by optimising our balance sheet and lowering our cost-to-serve which will translate to improved earnings while we remain committed to our medium to long-term strategic objectives”, Onyeali-Ikpe added.
In January 2021, after taking over as the bank’s MD/CEO, Onyeali-Ikpe announced a seven-point agenda centred on innovation, a brand refresh, workforce transformation, service excellence, digital transformation, performance discipline, and accelerated growth, to propel the bank to tier one status by 2025.