The audited results at the Nigerian Exchange Limited (NGX)
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.
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 Bank showed a good appetite 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.
However, the actual growth was 14.7 per cent while the
impact of the currency adjustment (2020FY: N400.3/$ – H1 2021: N410.6/$)
accounted for a 1.1per cent YTD growth in the loan book.
Cost of risk came in at 0.3 per cent and the NPL ratio
(Stage 3 Loans) dropped to 2.8 per cent from 3.8per cent in 2020FY. Other
regulatory ratios remain well above the minimum requirement: CAR at 18.8per
cent from 18.2 per cent in 2020FY.
Total Deposits increased by 16.5per cent YTD to N1,980
billion from N1,699 bn in 2020FY, 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.
Speaking on the Bank’s performance, MD/CEO of Fidelity Bank
, Mrs. Nneka Onyeali-Ikpe in a statement said: “We sustained our 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.
“This resulted in 72.4per cent increase in profit before tax
to N20.6billion from N12billion in H1 2020.Digital Banking gained further
traction as we now have 55.1 per cent of our customers enrolled on the
mobile/internet banking products and 89.3 per cent of customer-induced
transactions were done on digital platforms, ”Onyeali-Ikpe.
“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 sdded.
Onyeali-Ikpe had on assumption of office as the bank’s
MD/CEO in January 2021, Mrs. 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.