By OKEY ONYENWEAKU
Fidelity Bank, one of the leading financial institutions in the country, has released a bumper harvest for the year ended 2020.
Despite the frailties of the banking sector, Fidelity Bank relied on double digit growth in loan assets, deposits and fee income to improve profit over the years.
The bank, in its audited result, posted a profit of N32.377 billion despite the harsh operating environment.
Details of the result reveals that there was a 12% increase in net interest income which stood at N82.1 billion. During the comparable period in 2018, the company’s net interest income was N73.3 billion.
Profit before income tax for the period is N32.3 billion, compared to N25 billion that was recorded in 2018. This represents a 29% increase.
In the same vein, profit for the period increased by 28.5% to N29.5 billion, compared to N22.9 billion profit earned by the company in 2018.
The company’s gross earnings for the year ended 2019 stood at N217.3 billion, indicating a 15% increase compared to N188.8 billion that was reported during the comparable period in 2018.
Earnings almost doubled from 79 kobo to 102 kobo in 2019.
Despite fears of loan losses given the volatile operating environment, Fidelity Bank grew its loan book by 32.7 per cent from N849.8billion in 2018 to N1.719 trillion in 2019.
The deliberate policies of the bank’s management team impacted significantly on its total assets which grew 23 per cent from N1.719 trillion to N2.116 trillion.
Its strong and far reaching marketing strategies paid off resulting in the growth of deposit from customers by 25 per cent to N1.225 trillion from N979.4billion it achieved in the corresponding period of 2018.
“It is an impressive performance. The bank may have come up with strategies that gave it advantage over its competitors. However, let’s wait and see what it is offering as dividends”, said Managing Director of High Cap Securities Ltd., Mr. David Adonri
Fidelity Bank has continued to move against the head and tail winds. A combination of innovations, personalized customer services have calibrated its rating as a top financial institution.
Analysts believe that Fidelity Bank Plc is now playing in the league of the big banks such as First Bank of Nigeria Limited, Guaranty Trust Bank Plc (GTBank), Zenith Bank Plc, United Bank for Africa Plc (UBA) and Access Bank Plc which are seen as the banks that make the biggest impact in the banking industry.
Those who have followed the growth of the bank have rated them impressively as a tier 1 financial institution. This notwithstanding, some analysts perceive the bank as one of the best managed in the banking industry. Industry experts hinged this perception on the highly experienced and qualitative persons in the management cadre.
A visit to the bank’s Head Office on Fidelity Bank Close, Off Kofo Aboyomi, betrayed an organization which future lies in what it is able to do today to leap ahead. However, our reporter observed the banks effort to render qualitative service to customers. Its customer services officer was professional enough to explain in details some its products.
Of the 10 branches of the bank visited by our reporter in various parts of Lagos, there were impressive comments by customers about its services. But this has not diminished the bank’s ambition to play bigger and do better.
Investors in Fidelity Bank stocks have gained six per cent year to date.