By Odunewu Segun
Fidelity Bank’s profit before tax dropped to N11.1 billion from N14 billion posted in 2015, a statement issued by the bank on Sunday in Lagos has revealed.
National Daily gathered that although, it gross earnings stood at N152 billion for the financial year ended December 31, 2016, representing an increase of 3.5 per cent when compare with N146 billion achieved in 2015, the profits during the period were moderated by one-off staff cost incurred during the year.
The statement quoted Nnamdi Okonkwo, the bank’s Chief Executive Officer, as saying that profits dipped due to N4.8 billion cost incurred as Fidelity Bank discontinued its Legacy Gratuity and Retirement Scheme.
“Excluding this one-off charge, profit before tax for the year would have been at N15.8 billion” Mr. Okonkwo said.
He said that the performance was driven by the upgrade of its core banking system which provided a superior architecture that enhanced its operational efficiency and deepened the bank’s electronic banking capabilities.
In the statement, the bank’s interest income grew by 1.7 per cent from N60.9 billion to N61.9 billion, while total deposits, a measure of customers’ confidence, grew by three per cent, rising from N769.6 billion in 2015 to N793.0 billion.
In the same vein, total asset increased by 5.4 per cent to N1.29 trillion from N1.23 trillion in the corresponding period of 2015.
The bank is proposing to pay a dividend of 14k per share to all its shareholders.
Nnamdi Okonkwo in the statement said 2016 performance reflected the sound fundamentals of the bank’s evolving business model.
“Our financial performance in full year 2016 reflects the sound fundamentals of our evolving business model as we continued with the disciplined execution of our medium-term strategy which positions the business for improved and sustainable profitability,” Mr. Okonkwo said.