Fidelity Bank Third Quarter Gross Earnings Hit N106.6bn | Independent Newspapers Limited
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Fidelity Bank Third Quarter Gross Earnings Hit N106.6bn

Posted: Nov 4, 2015 at 9:13 am   /   by   /   comments (0)

Fidelity Bank Plc has reported an increase of 11.0 per cent and 1.8 per cent in its gross earnings and profit respectively for the nine months period ended September 30, 2015.

The bank’s gross earnings grew from N96.0 billion in the nine month period to N106.6 billion in the third quarter of 2015.

Profit after tax (PAT) went up by 1.8 per cent to N11.4 billion as against N11.2 billion made in the same period in 2014.

Total equity increased by 4.2 per cent to N180.3 billion from N173.1 billion as at December 2014 while operating income stood at N62.0 billion, a 9.7 per cent rise compared to N56.5 billion in the nine month period.

The Managing Director/CEO, Fidelity Bank Plc, Nnamdi Okonkwo, said that business operations during the period under review were constrained by regulatory and economic pressures arising from currency devaluation, tight monetary stance, and implementation of the Treasury Single Account (TSA).

He said that the situation culminated in negative earnings in the banking sector.

He however pointed out that the bank continued to increase yields on earning assets faster than growth in funding costs, which improved its NIM (Net Interest Margin) to 6.9 percent in third quarter of 2015.

He explained that total expenses grew by 10.3 per cent y-o-y to N44.8 billion and 6.3 percent q-o-q driven by cost lines like staff remuneration, regulatory costs (NDIC/AMCON) and branding/advertisement costs.

Cost-Income Ratio declined to 71.6 percent in 9M 2015 from 74.2 per cent in the 2014 FY as revenue growth outpaced the increase in operating cost. Net loans, on the other hand, grew marginally by 1.1 percent YTD to N547.7 billion but declined by 4.4 per cent q-o-q.

Source: Vanguard