Shareholders of Fidelity Bank Plc have reasons to cheer, going by the unaudited nine-month financials presented to the Nigerian Stock Exchange (NSE) on Thursday evening, showing that net profit grew at a faster pace than the 6.85% growth in gross earnings. This was helped by the N4.038bn or 55.14% drop in credit loss expense for the period; the effect of which would have been more significant, but for the rise in operating costs, at a time income slowed down.
Gross earnings rose by N8.915bn, or 6.85% from N130.086bn to N139.001bn; with interest and similar income rising to N120.399bn from N110.368bn; and interest and similar expense from N56.563bn to N62.231bn; as net interest income stood at N58.168bn, from N53.805bn. Credit loss expense dropped from N7.323bn to N3.285bn; just as net interest income after credit expense stood at N54.883bn from N46.481bn.
Fee and commission income rose to N15.068bn from N13.775bn, helped by the N2.62bn from ATM charges, from N2.541bn; accounts maintenance and charge, N2.104bn from N1.789bn; just as commission on travelers cheque and foreign bills climbed to N1.769bn from N1.37bn; among others.
Expense was flat at N2.61bn from N2.662bn; even as other operating income dropped to N3.535bn from N5.943bn, after net foreign exchange gains dropped to N4.871bn in 2017 to N2.641bn.
Personnel expense dropped slightly from N17.139bn to N16.747bn; depreciation and amortization increased slightly to N3.632bn from N2.696bn; just as other operating expenses climbed to N30.177bn from N27.651bn. The banking sector resolution cost paid to the Asset Management Corporation of Nigeria (AMCON) gulped the biggest chunk- N6.293bn, up from N4.847bn; followed by N5.581bn spent on marketing, communication and entertainment, down from N6.572bn.
Profit before tax therefore came to N20.064bn from N16.236bn; income tax expense jumped to N2.207bn from N1.786bn; resulting in N3.407bn or 23.58% growth in net profit from N14.45bn in 2017, or 56 kobo Earnings Per Share; to N17.857bn, representing 62 kobo each.
On the balance sheet, total assets stood at N1.68tr, compared to the prior N1.327bn; with loans and advancers to customers being the single largest line time, rising to N830.375bn, from N753.799bn. Total liabilities notched from N1.127tr to N1.488tr; with customer deposit standing at N986.83bn from N774.381bn; even as shareholders funds dropped to N192.387bn from N200.6bn.