Reginald Ihejiahi

Goddy Egene
Fidelity Bank Plc has recorded a 61 per cent in deposit growth for the half year (H1) ended June 30, 2012.
The bank’s unaudited account for the half year 2012 released recently showed that total deposits from customers of the bank stood at N554 billion, up from N345 billion in 2011.

Fidelity Bank’s profit before tax also soared by 160 per cent from N3.8 billion to N9.9 billion in 2012. Earnings per share grew by same margin of 160 per cent, rising 20 kobo in 2011  to 52 kobo in 2012.

The bank grew its total assets by 46.9 per cent from N502 billion to N736.9 billion, while net loans and advances rose by 36 per cent to N274 billion as at June 30, 2012 from N201 billion as at June 30, 2011. Shareholders’ funds stood at N141 billion as at June 30, 2012.

A look at the efficiency ratios of the Fidelity Bank showed that pre-tax (annualised) return on assets (RoA) increased to 2.7 per cent from 1.5, while return on equity (RoE) rose to 14 per cent in June 2012 from 5.8 per cent in June 2011.

Non-performing loan (NPL) ratio was six per cent as at June 30 2012 compared to 16 per cent as at June 30 2011 and was 7.8 per cent as at December 31, 2011. Similarly, cost-to-income ratio (CIR) dropped to 69.8 per cent in the half year ended June 30 2012 compared to 81 per cent in the corresponding period of 2011.

In terms of capital adequacy ratio (CAR), which measures a bank’s financial strength, soundness and capacity for future expansion, was 29 per cent which is well above the regulatory minimum of 10 per cent.

Also, liquidity ratio, which measures a bank’s solvency and ability to meet maturing obligations, was 47 per cent as at June 30 2012 compared to the regulatory threshold of 30 per cent.