The Oasis Reporters
April 2, 2021
•Proposes Dividend of 22Kobo Per Share
*Growth in Core Operating Profits, up from N29.8BN in 2019 FY to N44.9BN in 2020
*Net Revenue increased by 15.0% from N111.8 BN in 2019 FY.
Top Nigerian lender which has become the clear leader among Tier-2 banks, Fidelity Bank Plc, has in a clear demonstration of it’s resilience and stability, announced its financial results for the year ended December 31, 2020 in which it posted a 50.9% growth in Core Operating Profits from N29.8BN in 2019 FY to N44.9BN, while Net Revenue increased by 15.0% from N111.8 BN in 2019 FY.
The performance which capped a remarkable year, showed strong growth in Core Operating Profits, Net Revenue, and other key financial indices.
Customer Deposit, which is a measure of consumer confidence rose by 38.7% from
N1,225.2BN to N1,699.0BN just as Total Assets grew by 30.5% from N2,114.037TRN in 2019 FY to N2,758.148 TRN.
However, Profit Before Tax dropped by 7.6% to N28.1BN from N30.4BN in 2019 FY, due to an increase in the Bank’s loan provisions to shield it from any headwinds. A positive for the Bank
especially in the current era of Covid-19 and it’s attendant effect on business risks.
Encouraged by the healthy results, the Board of Fidelity Bank is proposing a N6.4BN payout, which translates to 22 Kobo dividend per share to its shareholders.
“We are pleased with our financial performance, which clearly showed the resilience of our business model as core operating profit increased by 50.9% to N44.9BN from N29.8BN in 2019 FY. We also saw a significant improvement in our efficiency indices as cost-to-income ratio moderated downward to 65.1% from 73.4% in 2019 FY.
However, “Profit Before Tax (PBT)
dropped by 7.6% to N28.1BN as we proactively increased our provisions on risk assets to N16.9BN from a net write-back of N0.6BN in 2019 FY,” said Nneka Onyeali-Ikpe, Fidelity Bank CEO, adding that the bank “took a conservative stance in recognition of the impact of the global
pandemic, which has redefined business risks and opportunities in the new normal”.
As seen in recent years, the Bank’s digital retail banking approach has continued to yield positive results.
Though Digital Banking income dropped by 18.8% due to the revised banker’s tariff, it increased by 19.6% QoQ on account of increased customer adoption as more services were migrated to the Bank’s digital channels”.
[ Read : http://www.theoasisreporters.com/women-rising-nneka-onyeali-ikpes-exciting-resumption-as-ceo-of-fidelity-bank-raises-hope/ ]
Nneka Onyeali-Ikpe, appointed as Chief Executive Officer of Fidelity Bank PLC on January 1, 2021 is happy with the progress of its digital banking platform, and rightly so, stating that over 52.8% of customers are now enrolled on the Bank’s mobile/internet banking compared to 47.4% in 2019FY, “while 88.4% of our customers’ transactions were done on the digital platform products and more than 81% of total transactions done on digital platforms”, she added.
As a full fledged commercial bank operating in Nigeria with about 6million customers who are serviced across it’s 250 business offices and various other digital banking channels, Fidelity Bank has in recent times won accolades as the Best SME Friendly Bank, Best in Mobile Banking and the Most Improved Corporate/InvestmentBank among several industry awards and recognitions. The bank was also ranked the 4th Best Bank in the Retail Banking
Segment in the 2017 Banking Industry Satisfaction Survey conducted by KPMG.
Focused on select niche corporate banking sectors as well as Micro, Small and Medium Enterprises (MSMEs), Fidelity Bank is rapidly implementing a digital based retail banking strategy which has resulted in an exponential growth in savings deposits over the last 3 years and a corresponding surge in customer enrollment on the bank’s flagship mobile/internet