Fidelity Bank's Profit Soars by 239% to N18 Billon

Fidelity Bank Plc Tuesday released its audited results for the year ended December 31, 2012, showing a highly impressive performance, as profit after tax soared by 239 per cent.

The bank recorded gross earnings of N116.361 billion in 2012; up by 87.5 per cent from N62.1 billion posted in 2011. Profit before tax rose by 30 per cent, from N7.671 billion to N21.625 billion.

However, profit after tax soared by 239 per cent from N5.361 billion in 2011 to N18.2 billion in 2012.  Earnings per share (EPS) witnessed a higher growth of 600 per cent as the bank ended the year with an EPS of 63 kobo, compared with nine kobo the previous year. Based on the performance, the directors have recommended a 50 per cent increase in dividend per share for the year. The shareholders will receive a dividend of 21 kobo per share, up from 14 kobo paid the previous year.

Further analysis of the results indicated that Fidelity Bank performed impressively in all major performance indicators. Customers' deposits, which are signs of confidence in a bank, rose by 28 per cent to hit N717 billion in 2012, up from N560.365 billion in 2011. Loans and advances rose by 22 per cent from N282.7 billion to N345 billion in 2012.

Profit margin improved from 8.6 per cent to 15.6 per cent, while return on average equity improved from four per cent the preceding year to 12 per cent last year.

The Managing Director of the Fidelity Bank, Mr. Reginald Ihejiahi, had last year said the bank's focus on reworking its funding base to a more sustainable and balanced deposit mix, through excellent branch roll-out strategy and increased recruitment of key businesses, had continued to show in strong positive growth in sustainable low cost deposits while expanding the base for non-interest income.