Fidelity Bank Nets N5.859bn 2020Q1 Profit, After 103% Credit Loss Growth

Fidelity Bank Plc, on Monday, submitted its unaudited financials for the first quarter ended March 31, 2020, highlights of which included the flat growth in gross earnings, made worse by a 103.19% growth in credit loss expense, among others, following which net profit stayed flat at N5.859bn, down from the previous N5.939bn.
Specifically, gross earnings for the period stood at N51.159bn, up by N2.736bn or 5.65% from the previous first quarter’s N48.423bn; with interest income accounting for N43.926bn from N39.431bn, representing an increase of N4.495bn or 11.39%. Interest expense, however, dropped by N3.574bn or 15.61% from N22.497bn to N19.326bn; resulting in net interest income of N24.6bn, which represents N8.07bn or 48.91% improvement over the N16.53bn reported in the preceding first quarter.
Credit loss expense jumped by N1.068bn from N1.035bn to N2.103bn, resulting in net interest income after credit loss expense stood at N22.497bn, compared to the previous N15.495bn, representing an increase by N6.967bn or 44.96%.
Fee and commission income reduced from N6.499bn to N5.571bn, representing a N928m or 14.28% drop, of which credit-related fees rose to N1.042bn from N784m, while ATM charges fetched N801m, a drop from the previous N925m; while fee and commission expense increased by N413m or 36.13% from N1.143bn to N1.556bn.
Other operating income dropped to N1.662bn to 2.494bn, representing a decline of N832m or 33.36%; which arose principally from the N1.449bn net foreign exchange income, representing a drop from N2.25bn. Personnel expenses climbed from N6.398bn to N5.347bn; while other operating expenses jumped by N3.463bn or 33.45%.
Profit before tax stood at N6.583bn, 1.36% down from N6.674bn in 2019Q1; even as the net profit translated to Earnings Per Share of 20 kobo, a marginal decline from 21 kobo.
The bank’s balance sheet however recorded robust growth, with total assets rising by N376.664bn or 20.14% from N1.87tr in 2019, to N2.246tr; lifted by the N199.572bn or 20.64% growth in customer loans, from N966.254bn to N1.165tr.
Total liabilities grew by N336.309bn or 20.16% to N2.004tr, from N1.668tr, boosted by the N1.352tr customer deposits, representing a N335.263bn or 32.96% growth from N1.016tr.
Shareholders’ funds for the period improved by 40.354 or 19.97% from N202.03bn to N242.384bn