Fidelity Bank Plc, on Monday became the last of its peers listed on the Nigerian Stock Exchange (NSE) to submit its audited financials for the year ended December 31, 2017, with net profit almost doubling, despite a 30.49% rise in loan loss provision for the period under review.
Earnings Per Share for the period stood at 65 kobo, up from previous year’s 34 kobo, with the directors proposing a dividend of 11 kobo per share for approval by shareholders at the next annual general meeting holding in Lagos on May 25, 2018.
The dividend is payable to those whose names are on the register of shareholders when it closes from May 14 and 18, while qualification date is on May 11, 2018, while payment is on the AGM day.
According to the result, gross earnings of Fidelity Bank rose 18.34% from N152.021bn to N179.896bn, helped by the interest and similar income of N150.742bn, representing a 22.4% growth from N123.153bn in the preceding year; while interest and similar expenses jumped from N61.225bn in 2016 to N79.278bn, representing an increase of 29.49%.
Net interest income could therefore only rise by 15.4% to N71.464bn, up from N61.928bn; while impairment charge (loan loss provision) jumped 30.49% from N8.671bn to N11.315bn; as net interest income after impairment charge improved by 12.94% to N60.149bn from N53.257bn/
Fee and commission income was down 11.32% from N20.557bn to N18.229bn; fee and commission expense increased 13.47% to N3.674bn from N3.238bn.
Other operating income jumped 31.45% up from N8.311bn to N10.925bn; net gain from financial instruments classified as held for trading stood at N348m from a loss of N625m.
Personnel expenses dropped 9.9% from N27.231bn in 2016 to N24.535bn; depreciation and amortization rose marginally from N4.308bn to N4.373bn; other operating expenses inched from N35.662bn in the previous full year to N36.767bn.
Profit before tax climbed 83.55% to N20.302bn to N11.061bn; following which the income tax expense of N1.455bn of 2017 full year resulted in net profit for the period of N18.857bn, as against the N1.327bn tax that left net profit of N9.734bn in 2016.