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H1 2012 Earnings: Fidelity Bank Profit Before Tax Hits N 10billion

By on July 28, 2012

Fidelity Bank transmitted its first half earnings to the Nigerian Stock Exchange on Thursday.

The following is an excerpt from a press release annoncing the bank’s results:

Fidelity Bank Plc announces Profit Before Tax of N10 billion for the half year ended June 30, 2012.

 

Income Highlights

Profit Before Tax (PBT) was N9.9 billion for the half year ended June 30, 2012 compared to N3.8 billion for the corresponding period in 2011; a growth of 160% in the period under review.

 

ü Gross income increased by 79% to N51.9 billion for the period ended June 30 2012, compared to N28.9 billion for the period ended June 30 2011.

 

 

ü Net interest income after impairment charge for credit losses increased by 88% to N19.5 billion during the period under review from N10.34 billion in the corresponding period of 2011. Net interest margin shrank; with the proportion of interest income used to service interest expense which was 39% in the half year ended June 30 2011, rising to 49.8% for the half year ended June 30, 2012.

 

 

ü Net fee and commission income grew by 30% to N11.4 billion in the half year ended June 30, 2012 compared to N8.7 billion in the corresponding period of 2011.

 

 

ü Operating Expenses rose by 40% in the half year ended June 30, 2012 to N23.2 billion from N16.5 billion recorded in corresponding period in 2011, due to sustained branch development activity. Branch count was increased by 5.4%, as ten new branches were opened in the 12 months to June 2012.

 

 

ü Earnings Per Share (annualized) increased by 160% to 52k per share in the half year ended June 30, 2012 from 20k per share in the half year period ended June 30 2011

 

Balance Sheet Highlights

 

Total Assets increased by 46.9% from N502 billion as at June 30, 2011 to N736.9 billion as at June 30, 2012.

 

 

ü Net Loans and Advances rose by 36% to N274 billion as at June 30, 2012 from N201 billion as at June 30, 2011.

 

 

ü Total Deposit from customers stood at N554 billion as at June 30, 2012, which represents 61% growth over the June 30 2011 figure of N345 billion.

 

 

ü Shareholders’ Fund stood at N141 billion as at June 30, 2012.

 

Efficiency Ratios

 

ü Pre-tax (annualized) Return on Assets (RoA) increased to 2.7% from 1.5%, while Return on Equity (RoE) rose to 14% in June 2012 from 5.8% in June 2011.

 

 

ü Non Performing Loan (NPL) ratio was 6% as at June 30 2012 compared to 16% as at June 30 2011. It was 7.8% as at December 31, 2011.

 

 

ü Cost-to-income ratio (CIR) dropped to 69.8% in the half year ended June 30 2012 compared to 81% in the corresponding period of 2011.

 

Capital Adequacy & Liquidity

 

ü Capital Adequacy Ratio (CAR), which measures a bank’s financial strength, soundness and capacity for future expansion, was 29%; well above the regulatory minimum of 10%. We will continue to leverage on this strategic liquidity to implement our expansion strategy as well as build capacity to grow shareholders wealth.

 

 

ü Liquidity Ratio, which measures a bank’s solvency and ability to meet maturing obligations, was 47% as at June 30 2012 compared to the regulatory threshold of 30%. This provides liquidity and headroom for credit expansion as lending recovery peaks.