Fidelity Bank net income drops by 31.91%

By Odunewu Segun

Fidelity Bank’s half year financial statement, posted on the floor of the Nigeria Stock Exchange (NSE), showed that its net income dropped by 31.91 percent to N5.59 billion from N8.21 billion as at June 2015, despite a strong net interest income.

According to the statement, its total operating expenses moved to N31.07 billion in the period under review as against the N28.81 billion it recorded the previous year. Meanwhile, it cost to income ratio (CIR), also increased to 79.15 per cent in June 2016 as against 72.19 per cent the previous year.

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Earlier this year, the Economic and Financial Crimes Commission (EFCC) arrested the CEO of the bank, Nnamdi Okonkwo, on the grounds that he allegedly helped a former Minister of Petroleum Resources, Diezani Alison Madueke, to launder $153 million during the build up to the presidential election.

Fidelity’s share price dropped -4.88 percent to N1.17 while -11.42 (1 year return to date) percent as investors dump bank stocks on the back of lack of policy direction on the part of the government and bleak economic outlook stoked by falling oil price.