Notwithstanding the country’s challenging and aggressively competitive business environment, Fidelity Bank Plc passed a solid financial performance in the first half of 2019, reporting a second-digit increase in key income lines whilst obtaining important traction in digital banking uptake.

Details of the audited half-year result for the period ended June 30, 2019, published at the Nigerian Stock Exchange (NSE) recently, showed a 15.7% rise in profit before tax (PBT), from N13 billion in the earlier period to N15.1 bn in the reporting period. Profit after tax (PAT) increased by 15.6% to close at N13.6 bn from the N11.8 bn recorded in 2018, whilst gross profits improved by 12.3% from N92.3 bn to N103.7 bn.

Also, the bank’s total assets rose by 12.8% to N1.940 trillion, from N1.720 trn the previous period. Total deposits, a measure of customer confidence, increased by 12% to close at N1.097 trn, from N979.4 bn in 2018 financial year (FY).

Commenting on the results, Fidelity Bank CEO, 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 2019 full-year, whilst promising that the bank would continue to sustain the momentum and deliver another strong set of results for the nine-month 2019.

He said: “Gross Earnings increased by 12.3% to N103.7 billion, driven by a 52.4% growth in our fee-based income and a 7.2% growth in interest income.”

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

“We now have 45% of our customers enrolled in the bank’s mobile/internet banking products, 82% of total transactions now done on digital platforms and 29% 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.

Buoyed essentially by innovative digital technologies, Fidelity Bank’s retail strategy has become a major game-changer for the business. This was again evident in the first half of 2019 results as savings deposits now account for about 22.6% of total deposits – a clear sign of the bank’s increasing market share in the retail segment.

“We are on course to achieving the 6th consecutive year of double-digit savings growth,” the CEO stated.

In addition, total deposits increased by 12% to N1.097 trillion, from N979.4 billion, driven by double-digit growth in both local and foreign currency deposits. Also, non-performing loans (NPLs) ratio improved to 5.4% from 5.7% in 2018 full year, due to growth in the loan book.

With regulatory ratios such as the Capital Adequacy Ratio at 17%, liquidity ratio at 34.8%, well above required threshold, Okonkwo was optimistic that the bank would sustain this sterling performance in the second half of the year.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over four million customers who are served across its 240 business offices and various digital banking channels.

The bank, which focuses on select niche corporate banking sectors as well as micro, small and medium scale enterprises (MSMEs), has in recent times won accolades as the Best SME Friendly Bank, Best in Mobile Banking and the Most Improved Corporate/Investment Bank among several industry awards and recognition.

SOURCE: https://brandspurng.com/2019/09/02/fidelity-bank-records-double-digit-half-year-earnings-profitability-growth/