Fidelity Bank grows PBT by 72.4% for H1 2021 on the Back of Increased Customer Transactions and Improved Operational Efficiency

Leading tier-2 lender, Fidelity Bank Plc has announced a profit before tax of N20.6bn (from N12.0bn in H1 2020) for the half year ended 30 June 2021. This is as reported in the Bank’s audited H1 results for 2021 released to the Nigerian Stock Exchange (NGX) and made available to financial correspondents in Lagos, Nigeria.

Speaking on the Bank’s performance, Mrs. Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank Plc commented, “We sustained our impressive financial performance with double-digit growth in profit as increased customer transactions drove non-interest revenue while improved operational efficiency continued to moderate cost – to – serve. This resulted in 72.4% increase in profit before tax to N20.6bn from N12.0bn in H1 2020.

A review of the financial result for the period indicates that Gross Earnings increased by 6.2% YoY to N112.3bn on account of 27.8% growth in Non-Interest Revenue (NIR) to N23.8bn from N18.1bn in H1 2020. NIR was driven by strong growth in Commission on Banking Services (57.7%), Account Maintenance Charges (50.6%), Digital Banking Income (49.4%) and Trade Income (33.7%) etc. as total customer induced transactions across all distribution channels increased by 58.0% YoY and 21.2% QoQ.

Digital Banking gained further traction as we now have 55.1% of our customers enrolled on the mobile/internet banking products and 89.3% of customer-induced transactions were done on digital platforms”, explained Onyeali-Ikpe.

The Bank showed a good appetite in funding the real sector with Net Loans and Advances increasing by 15.8% YTD to N1,535.4bn from N1,326.1bn in 2020FY. However, the actual growth was 14.7% while the impact of the currency adjustment (2020FY: N400.3/$ – H1 2021: N410.6/$) accounted for a 1.1% YTD growth in the loan book. Cost of risk came in at 0.3% and the NPL ratio (Stage 3 Loans) dropped to 2.8% from 3.8% in 2020FY. Other regulatory ratios remain well above the minimum requirement: CAR at 18.8% from 18.2% in 2020FY.

Total Deposits increased by 16.5% YTD to N1,980.2bn from N1,699.0bn in 2020FY, driven by increased deposit mobilization across all deposits types. Foreign currency deposits increased by 23.1% YTD ($149m) and now accounts for 18.5% of total deposits from 17.5% in 2020FY, as the bank continues to harness the benefits of its renewed drive in the diaspora banking space.

“We look forward to sustaining the current momentum in H2 2021 by optimizing our balance sheet and lowering our cost – to – serve which will translate to improved earnings while we remain committed to our medium to long-term strategic objectives,” concluded Onyeali-Ikpe.

It will be recalled that following her assumption of office as the bank’s MD/CEO in January 2021, Mrs. Nneka Onyeali-Ikpe announced a seven-point agenda hinged on innovation, brand refresh, workforce transformation, service excellence, digital transformation, performance discipline and accelerated growth all targeted at propelling the bank to tier one status by 2025.

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