- OPEX Impacts Bottomline Growth
Fidelity Bank Plc, on Tuesday presented its financials for the half-year ended June 30, 2022, showing such highlights as a 37.87% growth in gross earnings, helped by interest and similar income, while there was a drastic decline in net losses from financial assets. Profit growth at 20.72% could, however, not match that of earnings, due to the N15.758bn or 56.96% rise in other operating expenses.
The directors, nonetheless, approved a dividend per share of 10 kobo, from its earnings per share of 80 kobo, up from the previous half-year’s 67 kobo. Payment of the dividend is slated for September 20, to shareholders whose names appear on the register as of the close of business September 12, 2022.
According to the audited result, gross earnings rose by N42.539bn to N154.843bn, from N112.304bn in the comparative period of last year; the bulk of which was the N126.348bn interest and similar income, which rose from N85.09bn; and other interest and similar income of N9.877bn, improving from N4.031bn. Interest and similar expenses also increased from N38.824bn to N60.587bn, resulting in a net interest income of N75.638bn, up from N50.297bn.
Credit loss expense improved from N2.305bn in the preceding half-year, to N1.99bn; resulting in net interest income after credit loss expense of N73.648bn, compared to the previous N47.992bn.
Fee and commission income jumped from N12.726bn to N16.084bn; while expense increased from N3.309bn to N6.026bn. Other operating income fell sharply from N10.456bn to N2.535bn; just as net losses from financial assets from N4.99bn to N866m.
Personnel expenses increased to N15.23bn from N11.101bn; depreciation and amortization, N3.485bn; and other operating expenses soared from N27.661bn to N43.419bn; resulting in a profit before income tax of N25.079bn, up from the previous N20.628bn.
Income tax expense increased from N1.322bn to N1.772bn; resulting in a net profit of N23.307bn, up from the N19.306bn reported in the corresponding period of last year.
There was, however, a sluggish growth in total assets at N3.692tr, compared to the previous N3.289tr; with total customer loans and advances limping from N1.658tr to N1.912tr. Total liabilities also limped to N3.381tr from N2.991tr, boosted by customer deposits amounting to N2.29tr, from N2.024tr.