Fidelity Bank grows profit to ₦16.2 billion in Q3
Leading Nigerian lender, Fidelity Bank Plc, has posted another impressive financial performance for the nine months period ended September 30, 2017.
The bank said its gross earnings grew by 17.9 per cent to ₦130.1 billion, from ₦110.3 billion reported in the same period in 2016 while profit before tax rose by 65.1 per cent, from ₦9.8 billion to ₦16.2 billion.
Details of the nine months financial results released at the Nigerian Stock Exchange (NSE) Monday showed growth in key revenue lines and improved efficiency and regulatory ratios.
Speaking on the results, the bank’s CEO, Nnamdi Okonkwo said, “We are delighted with our nine months financial performance which showed strong growth in key revenue lines and a corresponding decline in our operating expenses, despite the high inflationary environment,”
He attributed the consistent delivery of strong financial results to the disciplined execution of the bank’s medium term strategy, which centred on optimal balance sheet management, strategic cost reduction and increased play in the digital and retail banking space.
“The implementation of the initiatives from our Business Process Review Project continued to impact positively on our operational efficiency as total operating expenses declined by 2.6 per cent to ₦47.5 billion, leading to our cost-income ratio dropping to 66.8 per cent from 77.3 per cent in 2016 FYE.
“The combination of the strong net revenue growth of ₦5.1 billion (8.8 per cent growth) and the decline in total expenses by ₦1.3 billion (2.6 per cent) translated to a ₦6.4 billion (65.1 per cent) increase in profit before tax (PBT) to ₦16.2 billion.
“The 9M 2017 PBT of ₦16.2 billion is higher than the annual profit numbers in any of the last fourt financial years (2013 to 2016),” he further explained.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 3.8 million customers who are serviced across its 240 business offices and various digital banking channels.
The bank has in recent times won accolades as the Best SME Friendly Bank, Best in Mobile Banking and the Most Improved Corporate/Investment Bank, among several industry awards and recognitions.
The bank was also ranked the Fourth Best Bank in the Retail Banking Segment in the 2017 Banking Industry Satisfaction Survey conducted by KPMG.
Focused on select niche corporate banking sectors as well as Micro Small and Medium Enterprises (MSMEs), Fidelity Bank is rapidly implementing a digital-based retail banking strategy which has resulted in a 93 per cent growth in savings deposits over the last three years, 50 per cent customer enrollment on debit cards, and 30 per cent of its customers now using its flagship mobile/internet banking products.
Last week, the bank successfully issued a $400 million Eurobond, which was priced at 10.50 per cent coupon.
The transaction regarded as the largest combined new issue and liability management offering by a Nigerian issuer has reopened the international bond markets for Nigerian Tier II banks.
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