TheCable

Fidelity Bank has announced gross earnings of N152 billion for the 2016 financial year.

According to a statement issued by the bank on Sunday in Lagos, the gross earnings represented an increase of 3.5 percent when compared with N146 billion achieved in the corresponding period of 2015.

It said the interest income grew by 1.7 percent from N60.9 billion to N61.9 billion, while total deposits, a measure of customers’ confidence, grew by three percent, rising from N769.6 billion in 2015 to N793.0 billion.

In the same vein, total assets increased by 5.4 percent to N1.29 trillion from N1.23 trillion in the corresponding period of 2015.

The bank’s profit before tax dropped to N11.1 billion from N14 billion posted in the previous year.

The statement said profits during the period were moderated by one-off staff cost incurred during the year.

The bank is proposing to pay a dividend of 14k per share to all its shareholders.

The statement quoted Nnamdi Okonkwo, the bank’s chief executive officer, as saying the 2016 performance reflected the sound fundamentals of the bank’s evolving business model.

“Our financial performance in full year 2016 reflects the sound fundamentals of our evolving business model as we continued with the disciplined execution of our medium-term strategy which positions the business for improved and sustainable profitability,’’ Okonkwo said.

He explained that profits dipped due to N4.8 billion cost incurred as Fidelity Bank discontinued its Legacy Gratuity and Retirement Scheme.

“Excluding this one-off charge, profit before tax for the year would have been at N15.8 billion” Okonkwo said.

He said the performance was driven by the upgrade of its core banking system which provided a superior architecture that enhanced its operational efficiency and deepened the bank’s electronic banking capabilities.