Fidelity Bank Plc (NSE – FIDELITYBANK) has released its unaudited financial statements for the period ended 31 December 2020. Fidelity Bank Plc reported a 4.8% decline in gross earnings and a 1.4% drop in profit for the 2020 full year.
Q4 2020 (October to December)
Fidelity Bank Plc’s interest income declined by 11.6% to N39.3 billion from N44.4 billion in Q4 2019, however, the net interest income rose by 17.0% to N29.0 billion from N24.8 billion in Q4 2019, due to the decline in “Interest and similar expense using effective interest rate method” to N14.2 billion from N22.4 billion in Q4 2019.
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The profit before income tax dipped by 9.2% to N8.9 billion from N9.8 billion in Q4 2019, while profit after taxation dropped by 18.6% to N7.6 billion from N9.4 billion in Q4 2019 because the bank paid N1.2 billion tax in Q4 2020 compared to N386 million it paid in Q4 2019.
Fidelity Bank Plc reported a 4.8% decline in gross earnings to N205.2 billion, down from N215.5 billion in 2019.
Interest income represented 81.6% of the 2020 gross earnings. The interest income however declined by 5.4% to N167.5 billion in 2020 from N177 billion in 2019.
On the contrary, the net interest income rose by 25.3% to N104 billion from N83.1 billion in 2019 due to the decline in “Interest and similar expense using effective interest rate method” to N71.7 billion from N99.3 billion in 2019.
Fees and commissions income dropped by 21.4% to N19.9 billion from N25.3 billion in 2019.
Profit before income tax dropped slightly by just 0.5% to N30.2 billion from N30.4 billion in 2019.
The profit for the year dropped by 1.4% to N28 billion from N28.4 billion in 2019. The EPS settled at 97 kobo down from 98 kobo in 2019.
The total assets of Fidelity Bank Plc grew by 30.4% to N2.8 trillion from N2.1 trillion in 2019.
Loan and advances to customers rose by 17.8% to N1.3 trillion from N1.1 trillion in 2019.
The total liabilities rose by 32.2% to N2.5 trillion from N1.9 trillion in 2019.
Deposits from customers grew by 38.7% to N1.7 trillion from N1.2 trillion in 2019.
The total equity rose by 16.6% to N272.9 billion from N234 billion in 2019 mainly due to the 77.6% rise in retained earnings to N77.5 billion from N43.6 billion in 2019.
The cash flow remained strong during the year as the bank maintained N335 billion cash and cash equivalents as at 31 December 2020 compared to N259.9 billion in 2019.
The net cash flow from operating activities stood at N249.5 billion significantly up from N26.1 billion used in operating activities in 2019.
Fidelity Bank Plc had several claims against it by parties seeking legal compensation in the sum of N7.26 billion as at 31 December 2020 (31 Dec 2019: N7.74billion).
The management of the Bank estimates a potential loss of N623 million (31 Dec 2019: N623 million) upon conclusion of the cases according to the bank, based on the advice of its legal team and the case facts.
About Fidelity Bank Plc
The company was incorporated in Nigeria on 19 November 1987.
The registered office address of the Bank is at Fidelity Place, 1 Fidelity Bank Close Off Kofo Abayomi Street, Victoria-Island, Lagos, Nigeria.
The principal activity of the Bank is the provision of banking and other financial services to corporate and individual customers.
Fidelity Bank Plc provides a full range of financial services including investment, commercial and retail banking.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.