Fidelity Bank Plc, on Friday evening published its audited result for the year ended December 31, 2016, indicating that gross earnings was flat, managing to rise by just N5bn or 3.45%, as profit before and after tax fell on the back of a slight increases in impairment charge and other operating expenses for the period.
There was also the impact of a huge 1,005.83% rise in income tax expenses from N120m in 2015 to N1.327bn, all of which left net profit at N9.734bn from N13.904bn in the corresponding period of 2015, from which the directors have recommended a dividend of N4.05bn or 14 kobo per share for distribution to shareholders.
Details of the result showed that gross earnings rose to N152.021bn from N146.948bn, with interest and similar income of N123.153bn, a flat growth from N121.158bn in 2015; and interest and similar expense of N61.225bn as against the previos N60.294bn. This left net interest income at N61.928bn from N60.764bn.
Impairment charge rose to N8.671bn from N5.764bn; resulting in net interest income after impairment charge of N53.257bn, slightly lower than the N55.1bn recorded in prior year.
Fee and commission income for the period increased slightly to N20.557bn from N17.237bn, just as expense from N2.411bn to N3.238bn; while other operating income was flat also at N8.311bn from N8.553bn; while personnel expenses stood at N27.231bn, compared with the previous N27.125bn.
Depreciation rose to N4.308bn lightly also from N3.985bn; just as other operating expenses rose from N33.054bn to N35.662bn; bringing profit before tax to N11.061bn; compared to the previous N14.024bn; while profit for the year was N9.734bn from N13.904bn, a drop of about N4.17bn, which translated to earnings per share of 34 kobo from 48 kobo in 2015.
On the balance sheet side, total assets stood at N1.298tr, as against previous year’s N1.231tr, with customer loans and advances rising by N139.858bn or 24.18% to N743.12bn; while cash and balance held with the Central Bank of Nigeria rose to N207.061bn from N185.332bn.
Total liabilities rose slightly to N1.112tr from N1.048tr, with customer deposit remaining flat at N792.971bn, from the preceding year’s N769.636bn, an increase by about N23.335bn or 3.03%, slower than the growth rate of loans and advances for the year.
A breakdown of the loan book showed that the bank’s exposure to the oil and gas sector stood at N188.217bn or 25.32% of gross loans, from N147.407bn or 24.6% in 2015; followed by government with N101.007bn or 13.59%; while power accounted for N87.845bn or 11.82%; among others.
By location, the bulk of the loan was concentrated in the south west zone, which accounted for N535.04bn or 71.99%.