Fidelity Bank Reports 72.4% Profit in Half Year Balance

Fidelity Bank Plc has announced a profit before tax of N20.6 billion for half year ended June 31, 2021.

Fidelity Bank Reports 72.4% Profit in H1

The announcement established the sharp increase from N12 billion reported in half year ended June 30, 2020 to the current N20.6 billion realized this year half.

Following closely the audited results at the Nigeria Exchange Limited (NGX), it showed a 6.2 percent increase in Gross Earnings to N112.3 billion on account of 27.8 percent growth in Non-Interest Revenue (NIR) to N23.8 billion from N18.1 billion in half year of 2020.

Non-Interest Revenue was driven by strong growth in Commission on Banking Services (57.7 per cent), Account Maintenance Charges (50.6 per cent), Digital Banking Income (49.4 per cent) and Trade Income (33.7 per cent) etc. as total customer induced transactions across all distribution channels increased by 58 per cent Year-on-Year (YoY).

The Bank showed a good appetite in funding the real sector with Net Loans and Advances increasing by 15.8 per cent YTD to N1, 535 billion from N1, 326 billion in 2020FY.

Nevertheless, the actual growth was 14.7 per cent while the impact of the currency adjustment (2020FY: N400.3/$ – H1 2021: N410.6/$) accounted for a 1.1per cent YTD growth in the loan book.

Speaking on the Bank’s performance, MD/CEO of Fidelity Bank, Mrs. Nneka Onyeali-Ikpe in a statement said: “We sustained our impressive financial performance with double-digit growth in profit as increased customer transactions drove non-interest revenue while improved operational efficiency continued to moderate cost – to – serve.

“This resulted in 72.4per cent increase in profit before tax to N20.6billion from N12billion in H1 2020.Digital Banking gained further traction as we now have 55.1 per cent of our customers enrolled on the mobile/internet banking products and 89.3 per cent of customer-induced transactions were done on digital platforms, ”Onyeali-Ikpe.

“We look forward to sustaining the current momentum in H2 2021 by optimizing our balance sheet and lowering our cost – to – serve which will translate to improved earnings while we remain committed to our medium to long-term strategic objectives,”Onyeali-Ikpe sdded.

Onyeali-Ikpe had on assumption of office as the bank’s MD/CEO in January 2021, Mrs. announced a seven-point agenda hinged on innovation, brand refresh, workforce transformation, service excellence, digital transformation, performance discipline and accelerated growth all targeted at propelling the bank to tier one status by 2025.