Lagos Nigeria, April 27, 2017: Top Nigerian lender, Fidelity Bank Plc
recorded a solid financial performance in the first quarter of 2017,
posting appreciable growth in profits and gross earnings for the period
ended March 31, 2017. This is in spite of the challenging and fiercely
competitive business environment.
Details of the unaudited results, released at the Nigerian Stock Exchange
(NSE) show that gross earnings rose by 18.8% from N34.4bn in 2016 to
N40.8bn for the corresponding period at March 31, 2017. Similarly Fidelity
Bank profits in the period, surged by 20.5% from N4.bn in 2016 to N4.8bn
in 2017, just as it recorded growth in net interest income, deposits,
loans and other performance indices.
Speaking on the results, the Fidelity Bank CEO, Mr. Nnamdi Okonkwo said
the double digits growth in earnings and profits underscores the
disciplined execution of its medium-term strategy and a business model
that enables the bank to continue to deliver improved performance in line
with its 2017 financial year targets. “Gross earnings growth was driven by
a combination of increased yields on earning assets and an absolute growth
in the volume of earning assets which led to a 24.1% year-on-year (y-o-y)
growth in interest income” he said.
The Fidelity Bank helmsman also spoke about the impact of the bank’s
efforts at reducing operating cost. “Our cost optimization initiatives
continued to deliver cost savings as total operating expenses declined
y-o-y by 10.4% to N14.4 billion, this was driven by a decline in over 60%
of our operating expense lines in Q1 2017. We will continue to optimize
our cost profile without impacting service delivery through the
disciplined execution of the initiatives from our recently completed
business optimization project” he explained further.
Deposits, which is a measure of customer confidence, in the period under
review, grew quarter on quarter (q-on-q) by 0.9% to N800bn in March 2017
from N793bn as at December 2016, with low cost deposits accounting for
79.4% of Total deposits. On the whole the bank’s retail strategy has
continued to deliver impressive results with savings increasing by 5.6% to
N163.7bn as at March 31, 2017.
Ranked amongst the top Nigerian banks, Fidelity Bank has a strategic
retail distribution network with presence in the major cities and
commercial centers across the country. Rising from the recent rebranding
exercise, the bank has become one of the most visible bank brands in
Nigeria, gaining accolades and recognition for its superior e-banking
products and services and promoting small businesses. Its SME financing
strategy is delivered through a multi-faceted approach that includes
robust business advisory, practical handholding and guidance of aspiring
and existing entrepreneurs to building sustainable businesses.