Fidelity Bank Boss Says Impact of Transformation Initiatives now Visible

Nnamdi Okonkwo, Chief executive officer of Fidelity Bank  has said the impact of transformational initiatives are beginning to yield fruits.  The bank announced a profit before tax (PBT) of N9.43 billion for the Half Year ended June 30, 2014; on track to achieve 2014 financial gear and medium term Return on Investment (ROE) target.
 “In the Half Year ended June 30, 2014, we have begun to see a gradual impact of some of the transformation initiatives we commenced at the beginning of the financial year with PBT growing by 12 percent in the second quarter and net interest income improving by 32 percent between June 2013 and June 2014. 
“We are confident that the profit and efficiency momentum will be sustained in the coming quarters as we implement our newly tested lending structures to grow the loan book in the SME and retail segment while consolidating on our niche corporate banking play”, said Okonkwo.
Gross Earnings grew by one percent from N62.9 billion recorded in the firs half of 2013 to N63.3 billion in corresponding period of 2014.
 Net Interest Income grew by 32 percent to N24.8 billion in the firs half of 2014 compared to the N18.7 billion recorded in the second half of 2013. This was driven by a steady growth in the loan book and repricing of deposits and risk assets.
 Non-interest Income declined by 14 percent to N13.0 billion from N15.1 billion recorded in 2013, basically driven by a reduction in foreign exchange earnings.
 Operating Expenses grew by 11 percent to N26.3 billion in 2014 from N23.7 billion recorded in 2013.  This was driven by an increase in remuneration costs and regulatory related expenses while the growth in the other expense lines was significantly below the inflation rate.
PBT was N9.4 billion for the Half year ended June 30, 2014, which represents a drop of 16 percent from N11.2 billion recorded in the Half Year ended June 30, 2013. However second quarter PBT was N4.97 billion which represents a growth of 12 percent from N4.45 billion recorded in first quarter of 2014.
Total Customer Deposits declined by five percent to N766 billion as at June 30, 2014 from N806 billion as at December 31, 2013 as we rebalance our deposit book on account of high Cash Reserve Requirement on public sector deposits and continuous re-pricing of the deposit book.
 On a quarterly basis deposits recorded a marginal growth in second quarter 2014 while interest expense remained flat in a period of increased monetary tightening.
Net Loans and Leases grew by three percent to N438 billion as at June 30, 2014 from N426 billion as at December 31, 2013, loan growth was 19 percent from June 2013 to June 2014.
 Shareholders’ Funds stood at N166.38 billion as at June 30, 2014.
 

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