Fidelity Bank Q3 2020 Profit Rise By 7% To N22.4bn, On Declined Interest Expense

Fidelity Bank Q3 2020 profit rise by 7% to N22.4bn, on declined Interest Expense
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Fidelity Bank Plc, a full-fledged Nigerian commercial bank, with over 5 million customers, serviced across 250 business offices and various other digital banking channels. The bank is focused on select niche corporate banking sectors as well as Micro Small and Medium Enterprises (MSMEs), Fidelity Bank is rapidly implementing a digital-based retail banking strategy which has resulted in exponential growth in savings deposits over the last six (6) years, with over 40 percent customer enrollment on the Bank’s flagship mobile/internet banking products.

The bank recently released its nine-month ended 30th September 2020 unaudited Financial Statement to the public. The Fidelity bank’s Q3 2020 results published by the Nigerian Stock Exchange (NSE) shows a 7 percent Year-on-Year (YonY) growth in Profit After Tax (PAT) to N20.4 billion on a 4 percent YonY decline in Gross Earning to N155 billion.

The 7 percent YonY growth in PAT for the bank in Q3 2020 was an indirect consequence of the 25 percent YonY decline in Interest expense for the period under review. Interest Expense declined to N57.5 billion from N76.9 billion in the corresponding period in 2019 resulting in a 29 percent YonY rise in Net Interest Income for Q3 2020 and consequently dovetailed into the bottom-line profit growth.

The 6 percent YonY decline in Non-Interest Income, which includes a 35 percent YonY drop in Fee and Commission Income for the period, 6% increase on Opex, and an N11.04 billion Credit Impairment provisioning in Q3 2020 as opposed to an N4.84 billion Loan Recoveries in the same period in 2019. Could however not offset the bank’s growth in profit for the period.

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Here are the other highlights of the Q3 2020 results released by Fidelity Bank Plc

Income Statement.

  • Gross Earning of N155.03 billion, down 4% YonY, Sept 2019– N161.06 billion
  • Net Interest Income of N75.0 billion, up 29% YonY, Sept 2019 – N58.25 billion
  • Non-Interest Income of N21.17 billion, down 6% YonY, Sept 2019 – N22.50 billion
  • Impairment Charge for Credit Losses up 128% YonY to N11.04 billion, Sept 2019 – Recoveries of N4.84 billion
  • Operating Expenses of N63.79 billion up 6% YonY, Sept 2019 – N60.28 billion
  • Profit Before Tax up 4% YonY to N21.35 billion, Sept 2019 – N20.6 billion
  • Profit After Tax for the 9-month period up 7% YonY to N20.14 billion from N19.06 billion
  • Earning Per Share up 6% YonY to 70 Kobo, Sept 2019 – 66 Kobo

 

Statement of Financial Position

The Balance Sheet size of Fidelity Bank Plc had a 9-month impressive double-digit growth for the period ended 30 September 2020. Total Assets grew 22% YTD. Deposit from Customers was also up by 22% in the 9-month period. Total Equity however dropped 12% and Customer Loans and Advances was also up by 12% YTD.

  • Total Assets up 22% year to date (YTD) to N2.58 trillion, Dec 2019 – N2.11 trillion
  • Customer Loans and Advances up 12% YTD to N1.27 trillion, Dec 2019 – N1.13 trillion
  • Deposits from Customers up 22% YTD to N1.50 trillion, Dec 2019 – N1.23 trillion
  • Owner’s Equity up 12% YTD to N262.17 billion, Dec 2019 – N234.03 billion

 


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