Fidelity Bank Plc has declared a profit before tax of N28.1 billion in its third quarter (Q3) ended September 30, 2021.
The Bank’s nine-months results released on the Nigerian Stock Exchange (NGX) on Tuesday, showed an impressive financial performance.
Gross earnings grew by 12.5 per cent to N174.4 billion from N155.0 billion in the same period in 2020, while profit before tax soared by 31.4 percent to N28.1 billion from N21.3 billion in nine months, 2020.
In other indices, total assets grew by 15.4 percent to N3,182.7 billion from N2,758.1 billion in the same period last year. Total deposits increased by 16.1 per cent year-to-date to N1,973.0 billion from N1,699.0 billion in 2020 full year, driven by increased deposit mobilization across all deposits types.
Speaking on the performance, CEO of Fidelity Bank, Mrs. Nneka Onyeali-Ikpe said: “we were able to sustain our performance trend since the start of 2021 with an impressive double-digit growth in profit driven by 69.9 percent increase in net fee income which compensated for the decline in net interest income as average yield on liquid assets remain low.”
She noted that digital banking has continued to gain traction as the bank now has 56.1 per cent of its customers enrolled on digital banking platform from 52.8 per cent in 2020 full year.
Stated that the bank had recorded a 125 percent year-on-year increase in total NIBSS Instant Payments (NIP) transaction and 24.9 percent, saying that 24.9 per cent of fee-based income currently comes from digital banking.
According to her, other regulatory ratios remain well above the minimum requirement: Capital Adequacy Ratio (CAR) at 18.8 per cent from 18.2 per cent in 2020FY while liquidity ratio came in at 34.5 per cent, well above the regulatory threshold of 30.0 per cent.
Fidelity Bank recently completed a successful Eurobond offering, raising $400 million from the international capital markets through a five-year tenor Eurobond. The offering achieved a 7.625 per cent coupon p.a. and recorded a 1.8x over-subscribed orderbook which peaked at over $700 million.