Fidelity Bank plc has announced its audited financial results showing a profit after tax of N13.8 billion for the year ended December 31, 2014, representing 79 percent increase from N7.7 billion in 2013.
The bank’s profit before tax increased by 72 percent to N15.5 billion at the end of 2104 from N9 billion in 2013 full year.
Interest income of the bank increased by 21 percent in 2014 to N104.3 billion from N86.3 billion in 2013, while net interest income before impairments increased by 58 percent to N48.8billion from N30.8 billion in 2013.
Also, the bank’s total assets increased by 10 percent in 2014 to N1,187 billion from N1, 081billion in 2013. Following the significant performance of the bank, the board of directors proposes a dividend of 18 kobo per share, a 29 percent increase from 14 kobo in 2013.
However, operating income of the bank increased by 15 percent to N72.6 billion from N63.3 billion in 2013. Total expenses increased by 5 percent to N57.1 billion in 2014 from N54.3 billion in 2013. the bank’s net loans and advances increased by 27 percent to N541.7 billion from N426.1 billion in 2013, customer deposits rose by 2 percent to N820 billion in 2014 from N806.3 billion in 2013, while its total equity increased by 6 percent to N173.1billion in 2014 from N163.5 billion in 2013.
Nnamdi Okonkwo, managing director/CEO of Fidelity Bank plc, commenting on the results, said: “Our 2014 performance is a testament to the significantly improved optimisation of our balance sheet. PBT growth of 72 percent was driven by a 27 percent growth in the loan book while cost of funds declined over the period. This translated to a 58 percent growth in net interest income and a 200bps growth in NIM to 6 percent. Cost of risk normalised to 0.8 percent from1.9 percent in the 2013FY.”
He said the bank’s retail banking strategy gathered increased momentum in 2014 with the bank acquiring over 471,000 new retail customers and core low-cost retail deposits grew by 18 percent, which impacted positively on our funding cost.
“We also witnessed improved operational efficiency as the bank leveraged alternative electronic channels to reduce our cost to serve, operating expenses (excluding regulatory costs) grew by 3 percent YOY, which was significantly below the inflation rate,” he said.
According to him, key regulatory ratios remained well above set limits which has resulted in the bank paying a dividend of 18 kobo per share, which translates to a dividend yield of 11.5 percent.
“Though, the operating environment remains challenging due to strong macro-economic headwinds, we remain committed to the execution of our medium-term strategic objectives, which are focused on the retail/SME/e-banking/niche corporate banking segments. We are confident of delivering another positive set of results in the 2015FY,” he said.
HOPE MOSES-ASHIKE
