Fidelity Bank Plc has posted a N15.5 billion profit before tax in its audited financial result for the year ended December 31, 2014.
The financial institution also proposed a dividend pay-out of 18 kobo per share, as its interest income increased by 21 per cent to N104.3 billion from N86.3 billion in the corresponding period of 2013.
The result also showed that net interest income before impairments increased by 58 per cent to N48.8 billion from N30.8 billion in 2013. The lender’s operating income rose by 15 per cent to N72.6 billion, compared with N63.3 billion in 2013, while total expenses also increased by five per cent to N57.1 billion from N54.3 billion in 2013.
The profit before tax, which increased by 72 per cent in 2014 financial year, rose from N9 billion in 2013 results, while profit after tax also increased by 79 per cent to N13.8 billion, from N7.7 billion in 2013.
The bank’s net loans and advances increased by 27 per cent to N541.7 billion from N426.1 billion in 2013, while deposits rose by two per cent to N820 billion from N806.3 billion in 2013.
A further breakdown of the result figures showed that the bank’s total equity also rose by six per cent to N173.1 billion from N163.5 billion in 2013, with total assets grown by 10 per cent to N1.18 trillion from N1.08 trillion in 2013.
The Managing Director and Chief Executive Officer of Fidelity Bank, Nnamdi Okonkwo, said: “Our 2014 performance is a testament to the significantly improved optimisation of our balance sheet. Profit before tax growth of 72 per cent was driven by a 27 per cent growth in the loan book, while cost of funds declined over the period.
“This translated to a 58 per cent growth in net interest income and a 200bps growth in NIM to six per cent. Cost of risk normalized to 0.8 per cent from 1.9 per cent in the 2013FY.
“Our retail banking strategy gathered increased momentum in 2014 with the bank acquiring over 471,000 new retail customers and core low-cost retail deposits grew by 18 per cent which impacted positively on our funding cost.
“We also witnessed improved operational efficiency as the bank leveraged alternative electronic channels to reduce our cost to serve, operating expenses (excluding regulatory costs) grew by three per cent year-on-year, which was significantly below the inflation rate.
“Key regulatory ratios remained well above set limits which has resulted in the bank paying a dividend of 18 kobo per share, which translates to a dividend yield of 11.5 per cent “Though the operating environment remains challenging due to strong macro-economic headwinds, we remain committed to the execution of our medium term strategic objectives, which are focused on the retail, small and medium enterprises, electronic banking and niche corporate banking segments and we are confident of delivering another positive set of results in the 2015.”
