Fidelity Bank’s profit tanked by 43% in 2016

Fidelity bank

Fidelity Bank PLC is one of the tier 2 banks in Nigeria with a rough 2016 financial year.

The bank has just disclosed that its full year profit for 2016 financial fell by 43% year on year. Full year net profit fell by 42% to NGN9,7 billion compared to NGN13,9 billion disclosed in the year 2015.

On the topline, the bank’s gross interest income rose to NGN152 billion compared to its interest income for the year 105 which came in lower at NGN146 billion.

The bank’s interest and similar expense rose slightly to NGN61,2 billion versus NGN60,2 billion declared in the previous year.

Impairment charges for the year rose to NGN8,6 billion versus 5,7 billion. This means in comparison to other banks in its category, the bank seems to have a lower credit impairment levels.

Total asset at the end of the year was valued ay NGN1.9 trillion compared to NGN1.2 trillion in the previous year. Total liabilities also increased to NGN1.1 trillion compared to NGN1.0 trillion disclosed in 2015.

While its capital adequacy ratio is still within regulatory benchmark at 17%, it is worthy to note that the ratio did dropped 19% disclosed as at 2015. The bank will surely be looking at raising fresh funds either through rights issue and or via bond sale.

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Corporate information

The Bank was incorporated on 19 November 1987 as a private limited liability company and domiciled in Nigeria. It obtained a merchant banking license on 31 December 1987 and commenced banking operations on 3 June 1988.

The Bank converted to a commercial bank on 16 July 1999 and registered as a public limited company on 10 August 1999. The Bank obtained its universal banking license on 6 February 2001. The Bank’s shares have been listed on the floor of the Nigerian Stock Exchange since 17 May 2005.