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FBN Holdings, Fidelity Bank, 3 others declare profit in 2019

Not less than a whopping N180.9 billion Profit After-Tax (PAT) has been declared by FBN Holdings Plc, Fidelity Bank Plc and three other commercial banks in their unaudited financial statement for the year ended December 31, 2019.

Others are Stanbic IBTC Holdings Plc, Wema Bank plc and Sterling Bank Plc.

The Daily Times, however, observed that the combined profit of N180.9 billion by the banks represented an increase of 6.7 per cent, when compared to N169.6 billion reported in the corresponding period in 2018.

In our checks, we gathered that Fidelity Bank with an impressive performance in top-line performance drove its profit after tax by double-digit while Stanbic Holdings reported a marginal increase in profit.

The banks in 2019 were faced with reduction of the minimum remunerated daily placement for Standard Deposit Facility (SDF) from N7.5 billion to N2 billion, coupled with the apex bank introduction of new rulers on Loan to Deposit ratio (LDR) which mandates Nigeria banks to meet LDR of 65 per cent by December 31, 2019

Besides, the CBN’s Monetary Policy Committee (MPC) cut interest rate from 14 per cent to 13.5 per cent, aimed at stimulating real sector growth.

The breakdown of the figure showed that Fidelity Bank Plc reported a 28.5 per cent increase in profit to N29.46 billion in 2019 from N22.93 billion reported in 2018 while FBN Holdings reported N61.95 billion profit in 2019 as against N59.67 billion reported in 2018 financial year results for the period ended December 31, 2018.

Fidelity Bank had posted an impressive financial performance for the third quarter ended September 30, 2019, and of course finished the 2019 financial year stronger.

Speaking on the bank’s third-quarter results in 2019, the MD/CEO, Fidelity Bank Plc, Nnamdi Okonkwo, said: “We look forward to sustaining the momentum in Q4 2019 and achieving our set targets for 2019 Financial Year.”

According to him, Retail Banking continued to deliver impressive results as savings deposits increased by 9.2 per cent to N248.9 billion, further adding that the bank is on course to achieving the 6th consecutive year of double-digit savings growth.

“Savings deposits now accounts for about 22.3 per cent of total deposits, an attestation of our increasing market share in the retail segment”.

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“The growth in deposits is further complemented by its digital banking push which has resulted in having over 46.4 per cent of its customers enrolled on the mobile/internet banking products and recording over 82.0 per cent of total transactions on digital platforms.

“Digital banking continued to gain traction driven by the bank’s new initiatives in retail lending and increased cross-selling of our digital banking products”, he added.

However, for the period under review, Stanbic Holdings reported a 0.8 per cent increase in profit to N75.04 billion in 2019 as against N74.44 billion in 2018.

Wema Bank reported a 32 per cent increase in profit to N4.41 billion in 2019 from N3.33 billion reported in 2018 while Sterling bank’s profit hits N10 billion in 2019, 8.6 per cent increase over N9.22 billion reported in 2018 financial year results.

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Ihesiulo Grace

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