Determined to contribute to the
growth of the Nigerian economy, Fidelity Bank Plc has grown its loans to
customers to N438 billion as at June ended 30, 2014, up from N426 billion as at
December 31, 2013.
According to the audited results of
the bank for the half year ended June 30, 2014, Fidelity Bank recorded gross
earnings of N63.3 billion, up from N62.9 billion recorded in the
corresponding half of 2013.
Net interest income grew by 32 per
cent to N24.8 billion in 2014 compared to the N18.7 billion recorded
in 2013, driven by a steady growth in the loan book and re-pricing of
deposits and risk assets.
Non-interest income declined by 14
per cent to N13 billion from N15.1 billion recorded in 2013 as a result of a
reduction in foreign exchange earnings.
The bank’s operating expenses grew by
11 per cent to N26.3 billion from N23.7 billion recorded in 2013 affected by an
increase in remuneration costs and regulatory related expenses.
Fidelity Bank’s profit before tax
(PBT) was N9.4 billion for the Half year ended June 30, ,2014, compared to
N11.2 billion recorded in the Half Year ended June 30, 2013.
However, second quarter PBT was
N4.97billion which represents a growth of 12 per cent from N4.45 billion
recorded in first quarter of (Q1) 2014.
Speaking on the results, the Managing
Director/Chief Executive Officer of the bank, Mr. Nnamdi Okonkwo said:
“In the Half Year ended June 30, 2014, we have begun to see a gradual impact of
some of the transformation initiatives we commenced at the beginning of the
financial year with PBT growing by 12 per cent in the second quarter and net
interest income improving by 32 per cent between June 2013 and June 2014.”
He expressed confident that the
profit and efficiency momentum will be sustained in the coming quarters as “we
implement our newly tested lending structures to grow the loan book in the SME
and retail segment while consolidating on our niche corporate banking play.”
A further analysis of the
results showed that cost to income ratio increased from 68 per cent in
2013 to 73 per cent 2014, while average cost of customer deposits improved from
7.7 per cent in full year 2013 to 6.4 per cent in H1 2014.
Average yield on earning assets
improved from 12.3 per cent in FY of 2013 to 14 per cent in H1 2014
Capital adequacy ratio (CAR), which
measures a bank’s financial strength and capacity for future expansion,
stood at 27 per cent, well above the regulatory threshold of 10 per cent
threshold.
“This provides us the right platform
to implement our expansion strategy as well as build capacity to grow
shareholders value,” Okonkwo said.
Similarly, the liquidity ratio, which
measures a bank’s solvency and ability to meet maturing obligations, was 35.3
per cent as at June 30, 2014, higher than the regulatory threshold of 30 per
cent.
THISDAY
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