Fidelity Bank grows profit by 331% in Q4 2017, 28% in Q1 2018

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WorldStage Newsonline– Fidelity Bank on Monday released if fourth quarter (Q4) 2017 and first quarter (Q1) 2018 results which showed that profit before tax (PBT) grew markedly by 232% to N4.1 billion in Q4 2017 compared with Q4 2016.

The profit after tax (PAT) growth was also amplified to 331% thanks to the  combination of a tax credit of N341m (vs.-N245m Q4 2016) and a positive result of N2.1bn in other comprehensive income (OCI).

The robust earnings growth was driven by a 55% expansion in funding income.

Although non-interest declined by -5%, the growth in funding income was significant and was the major driver behind the 29% increase in pre-provision profits.

The double-digit growth in pre-provision profits was strong enough to completely offset a 462% spike in loan loss provisions.

On a full year basis, Fidelity’s PBT was up 84%. Similar to the trends for the Q4 2017 results, a 15% growth in funding income was the key driver of profits.

PAT accelerated by 237% mainly because of a lower effective tax rate of 8.9% compared with 12% in 2016. The bank has proposed a dividend of N0.11 per share.

Q1 2018 RESULTS

The Q1 2018 results showed that PAT was up by 28% to N4.2 billion when compared with Q1 2017.

PBT growth was more modest at 3%, underpinned by a 4% increase in pre-provision profits to N20.8bn.

However, the double-digit growth was only because of a lower effective tax rate of 7.1% compared with 11.0% in Q1 2017.

PBT growth was more modest at 3%, underpinned by a 4% increase in pre-provision profits to N20.8bn.

As funding income grew by only 3%, loan loss provisions also declined by -6%.

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