Finally, the board of Fidelity Bank Plc finally presented its audited financials for the half-year ended June 30, 2018, without proposing a dividend unlike its peers that submitted similar results. The result, became due for submission to the NSE since August 15, 2018, but the management asked for waiver (READ)
Highlights of the financials showed that despite a sluggish 3.61% gross earnings limp, after interest and similar income crawled 2.5% up at a time expense rose 10% up, net profit improved by a more impressive 31.06%, on the back of the 46.09% drop in loan impairment charge. There was also the impact of the 45.61% rise in fee and commission income.
Specifically, gross earnings stood at N88.917bn, from N85.821bn in the previous half-year, with interest and similar income increased from N71.097bn to N72.876bn; while expenses grew to N41.989bn from N38.153bn.
Net interest income dropped to N30.887bn from N32.944bn; just as impairment charge slowed down from N4.81bn to N2.593bn; following which net interest income after impairment charge stood flat at N28.294bn, from N28.134bn.
The bank’s fee and commission income soared to N13.703bn from N9.411bn; expense dropped by 11.52% from N1.988bn to N1.759bn; with other operating income sliding to N2.338bn from N3.557bn.
Net gains from financial assets at fair value through profit also jumped 54.19% from N2.006bn to N3.093bn; just as personnel expenses was down 5.19% from N11.074bn to N10.499bn; depreciation and amortization stood at N2.816bn from N1.855bn.
Other operating expenses rose from N17.972bn to N19.344bn; leaving profit before tax at N13.01bn from N10.219bn, a 27.31% rise; income tax expense stood at N1.167bn from N1.183bn; following which net profit rose to N11.843bn from N9.036bn, resulting in Earnings Per Share of N0.41, from N0.31.
On the balance sheet size, total assets rose by 19.78% from N1.308tr to N1.567tr, as its customer loan book grew by N64.151bn, or 122.69% to N116.264bn from N52.287bn. Total liabilities increased to N1.383tr, as against the previous half-year’s N1.116tr, or 23.92% rise, boosted by N927.933bn customer deposits, which increased from N775.276bn, or N152.657bn, or 19.69%. Loan loss provisions dropped to N1.242bn, representing a N1.503bn or 54.75%, from N2.745bn in the preceding half-year.
Shareholders’ funds however decreased to N184.165bn from N203.315bn.