Digital transactions push Fidelity Bank to double-digit profit

Increased digital transactions have pushed Fidelity Bank Plc’s profits to double-digit territory.

In the audited half-year results for 2018 published by the bank on Wednesday, the bank said profit before tax grew by 27.3% and profit after-tax by 31% to close at N11.8 billion.

The bank said its gross earnings rose to N88.9 billion from the N85.8 billion recorded in 2017 and savings deposits increased by 10.6% to N197.5 billion

“Total Assets grew by 13.7 percent to N1,567.6 billion from N1,379.2 billion in the previous period. Total Deposits; a measure of customer confidence, increased by 19.7 percent to close at N927.9 billion from N775.3 billion in 2017,” the statement released by the bank read.

Commenting on the results, Nnamdi Okonkwo, the bank’s CEO said the bank’s disciplined approach in managing its balance sheet helped in achieving the results.

“Gross earnings, net fee and commission income all grew primarily due to the increase in transactional activities,” he said.

“Our digital banking initiative continues to gain traction with almost 40 percent of our customers now enrolled on our mobile/internet banking products and over 80 percent of total transactions now done on our digital platforms.

“The bank is on track to achieving a 5th consecutive year of double-digit savings growth. Low-cost deposits now account for 73.8% of total deposits.”

Although total operating expenses grew to five percent to N32.7 billion, Okonkwo said the bank’s cost to income ratio is still stable despite the double-digit inflationary environment.

With regulatory ratios such as the capital adequacy ratio at 17%, liquidity ratio at 33.2%, well above required threshold, Okonkwo was optimistic that the bank will sustain the performance in the second half of the year.