Tuesday, October 19, 2021

    Fidelity Bank reports N21.3bn profit for FY’2020 as gross earnings slump

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    Godwin Okaforhttps://naija247news.com
    Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

    Fidelity Bank’s drop in Gross Earnings was due to the decline in interest and similar income caused by lower yields and drop in fee income, outgoing CEO Okonkwo explains

    Meanwhile Fidelity Bank Plc has continued to sustain its financial performance with the strong 3rd quarter results for the year, released Monday at the Nigerian Stock Exchange (NSE).

    Details of the results show improvements in key indices though Gross Earnings dropped marginally by 3.7 per cent from N161.1bn in 2019 to N155bn.

    Profits were however up by 3.6 per cent, closing at a Profit Before Tax (PBT) of N21.3 billion whilst Profits After Tax (PAT) rose by 7 per cent from N19bn to N20.4 billion in the period under review.

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

    “Our nine 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, Mr. 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 N1.3bn largely due to a reduction in FX related income on account of the revaluation gains recorded in H1 2020.

    Digital Banking however continued to gain traction as we now have 52.3 per cent of our customers enrolled on the mobile/internet banking products from 47.4 per cent in 2019FY and 88.2 per cent of customer-induced transactions are done on digital platforms.

    Similarly, digital banking income increased by 20.0per cent 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 seventh consecutive year of double digits growth.

    “The growth in Savings Deposits accounted for 40.2 per cent of total growth in in Customer Deposits and Savings Deposits now represent 25.7 per cent of total deposits, up from 22.3 per cent in 2019” he enthused.

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