Okonkwo

Fidelity Bank Plc has posted Profit Before Tax (PBT) of N21.3 billion and Profits After Tax (PAT) of N20.4 billion in the third quarter of 2020.

Details of the results show improvements in key indices though Gross Earnings dropped marginally by 3.7 per cent from N161.1 billion in 2019 to N155 billion.  

In other indices, Customer Deposits, Net Loans and Total Assets grew in double digits. Total Assets grew by 21 per cent from N2.1 trillion in 2019 to N2.5 trillion; Customer Deposits were up by 22.3 per cent from N1.23 trillion to N1.5 trillion whilst Net Loans rose by 12 per cent from N1.12 trillion to N1.27 trillion to cap the good outing by the top lender.

“Our nine months results reflect our resilient business model, particularly in a very challenging operating environment. We worked closely with our customers to gradually recover from the economic impact of the pandemic and the attendant effect of the lockdown” said Fidelity Bank CEO, Nnamdi Okonkwo.

He explained that the drop in Gross Earnings was due to the decline in interest and similar income caused by lower yields and drop in fee income.  “Net fee income declined by N1.3 billion largely due to a reduction in forex related income on account of the revaluation gains recorded in first half 2020. 

Digital Banking however continued to gain traction as we now have 52.3 per cent of our customers enrolled on the mobile/internet banking products from 47.4 per cent in 2019 FY and 88.2 per cent of customer-induced transactions are done on digital platforms. 

Similarly, digital banking income increased by 20.0 per cent quarter on quarter due to improved adoption by customers and new services migrated to our digital channels” he stated.

Fidelity Bank has over the years implemented a retail digital banking strategy and that has continued to deliver, with the bank on course to achieving the 7th consecutive year of double digits growth. “The growth in Savings Deposits accounted for 40.2 per cent of total growth in in Customer Deposits and Savings Deposits now represent 25.7 per cent of total deposits, up from 22.3 per cent in 2019” he enthused.

He further disclosed that the bank has disbursed over N50 billion in intervention funds to customers in the last three months, in critical sectors to kick-start the economy after the lockdown and was quite optimistic about finishing the year strongly. 

“We will continue to monitor and pro-actively manage evolving risks as business activities improve and look forward to delivering another set of resilient results in the remaining quarter of 2020 financial year”, Okonkwo noted.