By Dipo Olowookere
Fidelity Bank Plc on Tuesday released its financial statements for the first half of 2017, posting a 65.6 percent growth.
Specifically, during the period, the profit after tax increased to N9.04 billion from N5.46 billion in the corresponding period of 2016.
The financial results further showed that profit before income tax stood at N10.22 billion as at June 30, 2017, in contrast to N6.13 billion achieved 12 months ago.
However, the results showed that no dividend was proposed by the Board of Directors of the lender in respect of the interim period ending June 30, 2017.
According to the bank, in the period under review, data from its Register of Members showed that no single shareholder held more than 5 percent of the issued share capital of Fidelity Bank.
Fidelity Bank, which boasts of 3,358 employees, made up of 57 percent male and 43 percent female, said its gross earnings rose to N85.82 billion from N70.26 billion in 2016, while the net interest income increased to N34.70 billion from N31.23 billion on June 30, 2016.
Furthermore, the net interest income after impairment charge stood at N29.89 billion in the period under review compared with N26.43 billion a year ago.
Also, the net cash flow used in operating activities closed at N7.67 billion as at June 30, 2017, in contrast to the N24.90 billion loss recorded 12 months ago, while the net cash flows provided by investing activities finished at N12.91 loss against N24.72 billion in the first half of last year.
According to the financial statements, loans and advances to customers stood at N51.05 billion versus N39.44 billion a year ago, while net foreign exchange gains closed at N2.55 billion against N963 million 12 months ago.
The lender noted that as at reporting date, it had several claims against it by parties seeking legal compensation in the sum of N3.92 billion as at June 30, 2017 versus N3.96 billion.
“Based on the estimates of the bank’s legal team and the case facts, the bank estimates a potential loss of N544.72 million (Dec 31, 2016: N544.72 million) upon conclusion of the cases.
“On the other hand, the bank has outstanding claims against various individuals in the sum of N2.75 billion (Dec 31, 2016: N7.63 billion) that are yet to be settled,” the report said.
In addition, Fidelity Bank disclosed that it has a $300 million Eurobond maturing in May 2018, adding that management has disclosed that it will issue a statement by September 30, 2017 stating which of the following options it will adopt for the Eurobond; redemption of the bonds, refinancing of the bond or issuing a new bond.
However in the interim the bank has set-up a sinking fund towards the repayment of the Eurobond if it decides to redeem the existing bonds.
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