Top Nigerian lender, Fidelity Bank Plc, has continued to demonstrate resilience and stability, declaring a profit of N22.9 billion in the year that ended 2018 and proposing a dividend payout of N3.2 billion.
On Friday, the bank announced an impressive financial result for the year-ended December 31, 2018, with the performance capping a remarkable year, and showing strong growth in Gross Earnings, Profits and other key financial indicators.
Fidelity which has become the clear leader among Tier 2 banks, posted a 4.8 per cent growth in Gross Earnings from N180.2 billion to N188.9bn, with Profit Before Tax soaring by 30.6 per cent to N25.1 billion, when compared with the 19.2 billion it recorded in 2017.
Profit After Tax grew by 29 per cent from N17.7 billion in 2017 to N22.9 billion in 2018, while Operating Income rose by 13.9 per cent from N85.9 billion to N97.2 billion. Customer Deposit, which is a measure of consumer confidence, rose by 26.3 per cent from N775.2 billion to N979.4 billion just as Total Assets grew by 24 per cent from N1.4 trillion to N1.7 trillion.
In other indices, Non-Performing Loans (NPLs) Ratio dropped to 5.7 percent from 6.4 percent in the 2017FY due to a combination of recoveries, loan write-offs and the absolute growth in the loan book. Other Regulatory Ratios remained above the required thresholds with Capital Adequacy Ratio (CAR) at 16.7 percent and Liquidity Ratio at 39.0 percent.
Buoyed by the strong results, Fidelity Bank is proposing a N3.2 billion payout, which translates to 11 kobo dividend to shareholders.
According to a statement from the bank, the Managing Director/Chief Executive Officer of the Fidelity Bank, Nnamdi Okonkwo said: “We are delighted by our 2018 numbers, which clearly shows a sustained performance trajectory. We are growing our market share with continued traction in our chosen business segments. We recorded double digits growth in interest income on our liquid assets, digital banking, FX and other income lines.”
As seen in recent years, the bank’s digital retail banking approach has continued to yield positive results. Savings recorded its 5th consecutive year of double digit growth with a 27.7 per cent increase to peak at N228 billion.
“Savings accounts for over 23 per cent of our Total Deposits, an attestation of our increasing market share in the retail segment,” Okonkwo stated.
The Fidelity Bank CEO was also very enthused with the progress of its digital banking play stating that over 42 per cent of customers are now enrolled on the bank’s mobile/ internet banking products and more than 81 per cent of total transactions done on digital platforms, resulting in 25 per cent of fee-based income, coming from digital banking.