Fidelity Bank’s PAT rises by 93.7 per cent
Details of the full year audited results showed 93.7 per cent increase in PAT to N18.9billion compared with N9.7billion recorded in the previous year.
The bank attributed the improved performance to strategic cost reduction adopted by the management as well as increased focus on the corporate, commercial, SME segments coupled with continued execution of its retail and digital strategy of the bank.
Also, the bank’s gross earnings grew by 18.3 per cent to N179.9billion from N152.0billion achieved in the corresponding period in 2016. Net Interest Income (NIM) increased by 15.4 per cent to N71.5billion in 2017, while total assets grew by 6.2 per cent from N1.3 trillion to N1.4trillion during the period under review.
Total Expenses declined by 2.3 per cent to N65.7billion from N67.2billion whilst Liquidity Ratio stood at 35.9 per cent compared with 33.2 per cent in the previous year.
Commenting on the results, the Chief Executive Officer, Nnamdi Okonkwo, said the bank sustained its performance through strategic cost reduction, increased focus on the corporate, commercial, SME segments and continued execution of its retail and digital banking strategy.
“We are delighted at the results, which showed strong growth in key revenue lines, significant traction in our chosen business segments and a corresponding decline in our operating expenses despite the high inflationary environment,” he stated.
According to him, the implementation of initiatives from its Business Process Review Project, and the bank’s digital focus, continued to impact positively on operational efficiency as total operating expenses declined by 2.3 per cent to N65.7billion leading to the cost-income ratio dropping to 67.5 per cent from 77.3 per cent in the 2016.
“The combination of the strong net revenue growth of 9.9 per cent to N7.7billion and the 2.3 per cent decline in total expenses which translated to cost savings of N1.5billion resulted in our increased profitability.
He added: “Increased digitisation has resulted to over 25 per cent of the bank’s fee-based income as customers’ adoption of its mobile/internet platforms improved to 35 per cent in the 2017 and led to a 21.0 per cent reduction in vault cash holding.
“Similarly, the Bank’s retail banking strategy continued to deliver good results. Savings Deposits grew by 15.2 per cent to N178.6billion, accounting for 23.0 per cent of total deposits from 19.5 per cent in the 2016FY. This has improved the bank’s low-cost deposits ratio to 77.0 per cent of total deposits.”
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