Fidelity Bank's mid-year profit rises 21% as revenue hits record N155bn
Fidelity Bank, backed by Global X Management in the US, which on Tuesday announced a binding agreement to fully acquire Union Bank UK, reported January-June net profit 20% higher, 7% from a year ago, according to its audited financial statements seen by PREMIUM TIMES.
The rise in profits was driven by interest income-led growth which saw revenue accelerate by 37.9% to N154.8 billion, a level not seen since the commercial lender opened its shop to customers as a merchant bank in 1988.
Its shares, listed on Custom Street in Lagos, had already climbed 4.6% to N3.18 per unit as of 11:13 a.m. WAT on Wednesday after the announcement, with the board announcing an interim dividend of N0.10 per unit in a separate document to further fuel activity in the stock.
The expected cash payment indicates that Fidelity Bank will pay an interim dividend for the first time and will commit N2.9 billion for this purpose, based on outstanding shares of approximately 29 billion units.
Accelerating by 48.5%, interest and similar income for the period jumped to N126.3 billion.
Its loan portfolio for the period was N2 trillion, more than a quarter of that provided by oil and gas loans.
But fees and commissions, the company's second major revenue stream, contributed much less at N16.1 billion and, worth noting in this category is commission on online banking, contributing as little as N1.1 billion at a time. like FBN Holdings, Zenith Bank, GTCO, Access Holdings, and UBA are feasting on revenue from e-channels, with some of them even building their revenue hopes around them.
Global ratings agency Fitch has upgraded the bank's long-term default issuer status to "B" f...
Fidelity Bank, backed by Global X Management in the US, which on Tuesday announced a binding agreement to fully acquire Union Bank UK, reported January-June net profit 20% higher, 7% from a year ago, according to its audited financial statements seen by PREMIUM TIMES.
The rise in profits was driven by interest income-led growth which saw revenue accelerate by 37.9% to N154.8 billion, a level not seen since the commercial lender opened its shop to customers as a merchant bank in 1988.
Its shares, listed on Custom Street in Lagos, had already climbed 4.6% to N3.18 per unit as of 11:13 a.m. WAT on Wednesday after the announcement, with the board announcing an interim dividend of N0.10 per unit in a separate document to further fuel activity in the stock.
The expected cash payment indicates that Fidelity Bank will pay an interim dividend for the first time and will commit N2.9 billion for this purpose, based on outstanding shares of approximately 29 billion units.
Accelerating by 48.5%, interest and similar income for the period jumped to N126.3 billion.
Its loan portfolio for the period was N2 trillion, more than a quarter of that provided by oil and gas loans.
But fees and commissions, the company's second major revenue stream, contributed much less at N16.1 billion and, worth noting in this category is commission on online banking, contributing as little as N1.1 billion at a time. like FBN Holdings, Zenith Bank, GTCO, Access Holdings, and UBA are feasting on revenue from e-channels, with some of them even building their revenue hopes around them.
Global ratings agency Fitch has upgraded the bank's long-term default issuer status to "B" f...
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