Fidelity Bank PBT Increases By 72.4% to N20.6bn In H1 2021

Fidelity Bank Plc has reported a profit before tax (PBT) increase of 72.4 percent to N20 billion for half year (H1) ended June 31, 2021, as against the N12 billion recorded H1’2020.

The data which was posted on the Nigerian Exchange Limited (NGX) website showed a 6.2 per cent increase in Gross Earnings to N112.3billion on account of 27.8 per cent growth in Non-Interest Revenue (NIR) to N23.8billio from N18.1billion in H1 2020.

While commenting on the bank’s latest report, Managing Director (MD) & Chief Executive Officer (CEO) of Fidelity Bank Plc, Nneka Onyeali-Ikpe, said the bank sustained its 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.

“Non-Interest Revenue was driven by strong growth in Commission on Banking Services (57.7 per cent), Account Maintenance Charges (50.6 per cent), Digital Banking Income (49.4 per cent) and Trade Income (33.7 per cent) etc. as total customer induced transactions across all distribution channels increased by 58 per cent Year-on-Year (YoY)”.

The CEO of the bank noted that Digital Banking gained further traction as 55.1 per cent of the bank’s customers enrolled on the mobile/internet banking products and 89.3 per cent of customer-induced transactions were done on digital platforms.

“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”.

Onyeali-Ikpe had on assumption of office as the bank’s MD/CEO in January 2021, she 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.

The Bank showed a good interest in funding the real sector with Net Loans and Advances increasing by 15.8 per cent YTD to N1,535 billion from N1,326 billion in 2020FY.

Total Deposits of the bank increased by 16.5 percent Year-Till-Date to N1,980 billion from N1,699 bn in 2020 Full Year, driven by increased deposit mobilization across all deposits types.

Foreign currency deposits increased by 23.1 per cent YTD ($149million) and now accounts for 18.5per cent of total deposits from 17.5 per cent in 2020FY, as the bank continues to harness the benefits of its renewed drive in the diaspora banking space.

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