Fidelity Bank Plc has delivered another set of strong financial results, posting a 94% growth in profits for the year ended December 31, 2017 and is proposing to pay 11 kobo dividend to shareholders.
Details of the full year audited results for the top Nigerian lender, released on Monday at the Nigerian Stock Exchange (NSE), shows impressive growth in all key indices. The performance capped a remarkable 2017FY for the bank which returned to the international capital markets and successfully issued a $400m Eurobond that was over-subscribed by over 200%
Gross Earnings grew by 18.3% to N179.9 bn from N152.0bn in 2016, whilst Profit After Tax (PAT) surged by 93.7% to N18.9 bn compared with N9.7bn recorded in the previous year. Net Interest Income (NIM) increased by 15.4% to N71.5bn in 2017, Net Operating Income rose by 9.9% from N86.0bn to N78.3bn whilst Total Assets grew by 6.2% from N1.3trillion to N1.4 trillion in the period under review.
In other indices, Total Expenses declined by 2.3% to N65.7bn from N67.2bn whilst Liquidity Ratio stood at 35.9% compared with 33.2% in the previous year.
Commenting on the results, Fidelity Bank CEO, Mr. Nnamdi Okonkwo expressed delight with the performance. According to him, the Bank sustained its performance through disciplined balance sheet management, strategic cost reduction, increased focus on the corporate, commercial, SME segments and continued execution of its retail and digital banking strategy.
“We are delighted at the results, which showed strong growth in key revenue lines, significant traction in our chosen business segments and a corresponding decline in our operating expenses despite the high inflationary environment”, he stated.
According to him, the implementation of initiatives from its Business Process Review Project and the Bank’s digital focus, continued to impact positively on operational efficiency as “total operating expenses declined by 2.3% to N65.7 billion leading to the cost-income ratio dropping to 67.5% from 77.3% in the 2016FY. The combination of the strong net revenue growth of 9.9% to N7.7 billion and the 2.3% decline in total expenses which translated to cost savings of N1.5 billion resulted in our increased profitability”.
Increased digitization has resulted to over 25% of the Bank’s fee-based income as customers’ adoption of its mobile/internet platforms improved to 35% in the 2017FY and led to a 21.0% reduction in vault cash holding. Similarly, the Bank’s retail banking strategy continued to deliver good results. Savings Deposits grew by 15.2% to N178.6bn, accounting for 23.0% of total deposits from 19.5% in the 2016FY. This has improved the Bank’s low-cost deposits ratio to 77.0% of total deposits.
Similarly, Fidelity Bank has strengthened the financial inclusion initiative of the Federal Government with about N215 million in two years.
Nnamdi Okonkwo, the bank’s Managing Director, stated this at the sixth/final draw of the ‘Fidelity Get Alert in Millions Promo Reloaded’ in Lagos.
Okonkwo said the bank, through the promo, had distributed about N215 million to 140 customers in the last two years.
He said N105 million was “splashed” to customers during the first promo, while N110 million was distributed under the Get Alert in Millions Reloaded.
Okonkwo said 192 customers were also rewarded with consolation prizes ranging from television sets, refrigerators and generators bringing the total winners to 332.
He said the reloaded promo, which commenced in October 2017, had impacted positively on the bank’s customers and savings base.
Okonkwo said that the adoption of retail banking strategy generated a lot of deposits from existing customers, attracted new customers and enhanced financial inclusion in Nigeria.
He said the bank would continue to embrace initiatives that would improve lives of its customers.
According to him, the promo was introduced to improve lives of customers and reward those who had been banking with the bank over the years.
He said: “The believability of it is because of how we have delivered on our promises. We are Fidelity and we keep to our word.”
He commended the bank’s customers for their loyalty in the past years, adding that the bank would announce a new promo initiative in the next couple of weeks.
Okonkwo said: “I am happy to see that we have come to the end of the promo. This is the seventh promo of the bank in the last 10 years.”
The News Agency of Nigeria reports that Ekenechukwu Nnolue, a customer at Aba Shoe Plaza branch, Abia State, won the bank’s promo grand prize of N10 million.
Speaking on the grand prize, Okonkwo said he was happy that somebody from that location emerged the winner.
He said the bank through its Small and Medium Enterprises had partnered with Aba shoe makers which resulted in the establishment of the bank’s branch at the market.
He said: “Our SME team spent two weeks in that market and I am happy that the partnership produced a champion today.”
Nkiru Onuzulu, Deputy Director/ Coordinator, National Lottery Regulatory Commission, said the commission monitored the promo process from the beginning to the end.
Onuzulu said nobody was cheated throughout the promo period and that the promo was conducted transparently.
She commended the bank for maturity and transparency exhibited throughout the duration of the promo, noting that the process was free and fair.