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Fidelity Bank Reports 66.67% 2017Half-Year Net Profit Growth

Fidelity Bank Plc, on Tuesday became the last of its like to present their audited financials for the half year ended June 30, 2017 to the Nigerian Stock Exchange (NSE), indicating that net profit rose faster than gross earnings.
Gross earnings rose by N15.562bn or 22.14% from N70.259bn to N85.821bn for the period under review; with investment banking contributing N31.88bn; while corporate banking yielded N30.214bn; followed by N23.727bn from retail bank; while the bank did not earn revenue from its public sector business segment.
The bank’s earnings for the period got a boost with the N15.847bn or 27.79% rise in interest and similar income to N72.853bn, up from N57.006bn; while interest and similar expenses grew from N38.153bn, representing N12.378bn or 48.02%. Net interest income therefore stood at N34.7bn, from N31.231bn.
Impairment charge was flat at N4.81bn, compared to the previous N4.797bn; following which net interest income after impairment charge climbed from N26.434bn to N29.89bn.
Fee and commission income dropped to N9.411bn, down by N2.623bn or 21.79% to N9.411bn from N12.034bn; just as fee and commission expenses climbed to N1.988bn from N1.322bn.
Other operating income soared to N3.557bn from N1.219bn; net gains from financial instruments classified as held for trading stood at N250m, compared to the preceding loss of N776m.
Personnel expenses dropped to N11.074bn from N12.03bn; depreciation and amortization reduced to N1.855bn from N2.107bn; just as other operating expenses was closed flat for the period at N17.972bn from N17.321bn.
Profit before tax therefore rose to N10.219bn from N6.131bn; while income tax expense almost doubled to N1.183bn, as against prior half-year’s N6.131bn; following which net profit for the period improved by N4.088bn or 66.67% from N5.457bn in the corresponding period of 2016 to N9.036bn, N6.35bn of which came from the retail banking; while corporate banking fetched N2.098bn; and investment banking, N588m. Also, the net profit represented earnings per share of 31 kobo, as against the previous 19 kobo; while net profit margin stood at a mere 11.9% for banks within its ranks; compared to 8.72% in 2016.
Total assets for the period grew to N1.308tr from N1.298tr, with customer loans and advances crawling to N720.163bn from N718.401bn; just as total liabilities increased slightly from N1.112tr to N1.116tr, with deposits from customers declining from N792.971bn to N761.069bn; even as shareholders’ funds grew to N192.339bn from N185.402bn

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