Business

Fidelity Bank grows profits by 604%

Fidelity Bank Plc has announced a growth of 608 percent in its profit after tax for the financial year ended December 31, 2012.

The bank also announced a growth of 23.7 percent in its net loans and advances to customers within the period.

Specifically, the profit for the period rose to N18.2 billion in 2012 from N2.6 billion recorded in 2011, while net loans and advances to customers increased to N345.5 billion from N279.2 billion in the preceding period.

The increase in profit, according to the bank, resulted from a significant proportion of income from tax exempt assets and transactions, in addition to the huge expansion recorded in non-interest income and net interest and discount income. The result was prepared in line with International Financial Reporting Standard, IFRS, requirements and is already approved by the appropriate regulatory bodies, Fidelity Bank said in a statement.

The gross earnings for the period grew by 62.3 percent from N73.6 billion in 2011 to N119.4 billion in 2012.

Net interest and discount income was N36.8 billion in 2012, an increase of 20.5 percent 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 mobilisation with income growth.

Total Assets increased by 23.9 percent to N914.4 billion from N737.9 billion in 2011, while total equity rose by 10.5 percent to N161.5 billion from N146.1 billion.

Commenting, the MD/CEO, Mr. Reginald Ihejiahi, said: “We are delighted with our 2012 result which shows a strong rise in profitability compared to 2011, particularly the momentum sustained in the growth in our non-interest income, arising from aggressive business acquisition and the linkage effect of a well implemented branch development programme.”

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