Home Business & Economy Fidelity Bank excites shareholders with N15bn half year profit

Fidelity Bank excites shareholders with N15bn half year profit

Fidelity Bank excites shareholders with N15bn half year profit

​ COMFORT EKELEME,Asst Business Editor ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Shareholders of Fidelity Bank Plc has described the bank as a strategic financial institution which is committed to impact in the Nigerian economy.

This is coming on the heels of the recent release of the Bank’s half year result which showed a 15.7 per cent rise in Profit Before Tax (PBT) from N13.0 billion in the earlier period to N15.1 billion.

The shareholders who expressed satisfaction with the performances of the bank , maintained that the bank has a structure that believes in sustainability and focus in the Nigerian banking sector.

Speaking with Daily Champion, National President, Constance Shareholders Association of Nigeria, Alhaji Shehu Mikail said part of Fidelity Bank’s mission is to see that every Nigerian key into financial transactions service structure, stressing that, that is one of the reason the bank has made Small and Medium Scale Enterprises (SMEs) a priority.

He said, the Board and the management of the bank know that in modern banking system, there is need for a solid high technology, stressing that ICT is the way for better structuring in modern days business.

” That is why Fidelity Bank solidify their digital financial transactions system which makes their customers to have confidence in their operational system which also make a customer to say good night without doubt.

” The management believe in create a wealth for both the stakeholders and Shareholders that is why they are so prudent in actions in other to have a sustainable bank and becomes one of leading and lending financial institution in Nigeria and a trusted financial house in Nigeria.

Also speaking, Alhaji Gbadebo Olatokunbo, a shareholder activists said, if the truth must be told,shareholders owe management of Fidelity Bank led by Mr. Nnamdi Okonkwo a great gratitude because of what is happening to our investment in Fidelity Bank of today.

He said, “When he took over few years back,he made some pronouncements on his vision/mission on the future of the bank and thank God,we are witnessing some of the results to that pledges and there will be no stopping until we get to the promise land in accordance to the pledges of the oracle at the helm of affairs in today’s Fidelity Bank.

“When l got my entitlement after my retirement in year 2007, Fidelity Bank was offering a Public-offer of over N11.00 per unit and l slashed my hard earned money of almost four decades on the offer and not quite long after the great crash in the banking industry in year 2009 scattered the hard earned money, hope and aspiration of several shareholders.

“While the bank stocks had remain almost bury since then, but a messiah later emerged in the person of the current Managing Director with prophesies of great vision and mission, which we have started to witness the results and we are grateful for the results while we are patiently waiting to cross the red sea in-order to get to the promise land”.

Details of the audited half-year result for the period ended June 30, 2019, released on the floor of the Nigerian Stock Exchange (NSE) showed a 15.7 per cent rise in Profit Before Tax (PBT) from N13.0 billion in the earlier period to N15.1 billion in the reporting period.

Profit After Tax (PAT) rose by 15.6 per cent to close at N13.6 billion from N11.8 billion recorded in 2018, whilst gross earnings increased by 12.3 per cent from N92.3 billion to N103.7 billion. In other indices, Total Assets rose by 12.8 per cent to N1.940.2billion from N1,719.9billion in the previous period.

Total Deposits; a measure of customer confidence, increased by 12.0 per cent to close at N1,097.0 trillion from N979.4 billion in 2018 Financial Year (FY).

Commenting on the results, Managing Director of Fidelity Bank, Mr. Nnamdi Okonkwo expressed delight with the bank’s financial performance.

According to Okonkwo, the bank remained focused on the execution of its medium-term strategic goals and targets for the 2019 FY whilst promising that the bank would continue to sustain the momentum and deliver another strong set of results for the 9M 2019.

He said, “Gross Earnings increased by 12.3 per cent to N103.7bn driven by a 52.4 per cent growth in our fee-based income and a 7.2 per cent growth in Interest Income.

Digital Banking, Okonkwo stated has continued to gain traction driven by new initiatives in retail lending segment and increased cross-selling of its digital banking products.

“We now have 45.0 percent of our customers enrolled in the bank’s mobile/internet banking products, 82.0 percent of total transactions now done on digital platforms and 29.0 percent of fee-based income now coming from digital banking”, he added.

The Fidelity CEO pointed out that retail loans were steadily on the rise after the launch of the bank’s new digital lending product dubbed Fidelity Fastloan, further adding that the bank has deepened lending partnerships with select Financial Technology (FinTechs) companies.

Total Deposits increased by 12.0 percent to N1,097.0bn from N979.4bn driven by double-digit growth in both local and foreign currency deposits. Non-performing Loans (NPLs) Ratio improved to 5.4 percent from 5.7 percent in the 2018FY due to the growth in the loan book. With regulatory ratios such as the Capital Adequacy Ratio at 17.0 percent, Liquidity Ratio at 34.8 percent, well above required threshold, Okonkwo was optimistic that the bank will sustain this sterling performance in the second half of the year

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