• Monday, May 27, 2024
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Fidelity Bank records impressive 9 months results as pre-tax profit hits N21.3bn

Fidelity-Bank

Fidelity Bank Plc has continued to sustain its impressive run of financial performance with the strong third-quarter (Q3) results for the year, released at the Nigerian Stock Exchange (NSE). Details of the results show improvements in key indices though Gross Earnings dropped marginally by 3.7percent from N161.1billion in 2019 to N155billion. Pre-tax profits however went up by 3.6percent, closing at N21.3billion while Profits After Tax (PAT) rose by 7percent from N19billion to N20.4billion in the period under review.

In other indices, Customer Deposits, Net Loans and Total Assets grew in double digits. Total Assets grew by 21percent from N2.1billion in 2019 to N2.5billion; Customer Deposits were up by 22.3percent from N1.23billion to N1.5billion whilst Net Loans rose by 12percent from N1.12billion to N1.27billion to cap the good outing by the top lender.

“Our 9 months results reflect our resilient business model, particularly in a very challenging operating environment. We worked closely with our customers to gradually recover from the economic impact of the pandemic and the attendant effect of the lockdown” said Fidelity Bank CEO, Nnamdi Okonkwo.

He explained that the drop in Gross Earnings was due to the decline in interest and similar income caused by lower yields and drop in fee income. “Net fee income declined by N1.3billion largely due to a reduction in FX related income on account of the revaluation gains recorded in first half (H1) 2020. Digital Banking however continued to gain traction as we now have 52.3percent of our customers enrolled on the mobile/internet banking products from 47.4percent in 2019FY and 88.2percent of customer-induced transactions are done on digital platforms. Similarly, digital banking income increased by 20percent quarter on quarter due to improved adoption by customers and new services migrated to our digital channels” he stated.

Fidelity Bank has over the years implemented a retail digital banking strategy and that has continued to deliver, with the bank on course to achieving the 7th consecutive year of double digits growth. “The growth in Savings Deposits accounted for 40.2percent of total growth in in Customer Deposits and Savings Deposits now represent 25.7percent of total deposits, up from 22.3percent in 2019” he enthused.

He further disclosed that the bank has disbursed over N50billion in intervention funds to customers in the last three months, in critical sectors to kick-start the economy after the lockdown and was quite optimistic about finishing the year strongly. “We will continue to monitor and pro-actively manage evolving risks as business activities improve and look forward to delivering another set of resilient results in the remaining quarter of 2020FY”, Okonkwo noted.