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Fidelity Bank grows profit after tax by 604%

By on May 22, 2013

Fidelity Bank plc yesterday declared a profit after tax of N18.2 billion for its financial year ended December 31, 2012, just as it approved a dividend of 21 kobo per share to its shareholders.

The bank’s profit after tax for the year under review rose significantly by 604 per cent, compared to the N2.6 billion it posted in 2011.

The bank’s chairman, Dr, Christopher Ezeh, who announced the results at its 25th Annual General Meeting, AGM, in Abuja, said Profit after Tax, PAT, rose by 604 per cent to N18.2 billion in 2012 from N2.6 billion recorded in 2011.

Ezeh said in addition to the huge expansion recorded in non- interest income and net interest and discount income, the rise in PAT resulted from a significant proportion of income from tax exempt assets and transactions.

According to him, gross earnings grew by 62.3 per cent from N73.6 billion in 2011 to N119.4 billion in 2012, while the net interest and discount income was N36.8 billion in 2012, an increase of 20.5 per cent from N30.6 billion recorded in 2011.
“This was driven by prudent balance sheet management that aimed to balance asset prices and low cost deposit mobilization with income growth,” he said.

The bank’s non-interest income increased by 65.6 per cent  to N39.4 billion, compared to 2011 figure of N23.8 billion, due to continued increase in customer recruitment, new business acquisition, and the continued linkage effect of a well implemented branch expansion programme with a total assets that rose by 23.9 per cent to N914.4 billion as at December 31, 2012 from N737.9 billion as at December 31, 2011.

He announced that the total deposit from customers was N716.7 billion, representing an increase of 27.2 per cent over the N563.7 billion posted in 2011.  The proportion of low cost deposits (demand and savings deposit) to total deposits was 73.9 per cent as at end of December 31, 2012. Net loans and advances to customers increased by 23.7 per cent to N345.5 billion from N279.2 billion while its total equity rose by 10.5 per cent to N161.5 billion from N146.1 billion.