Fidelity Bank Plc has recorded a solid financial performance in the first quarter of 2017, posting appreciable growth in profits and gross earnings for the period ended March 31, 2017.

This is in spite of the challenging and fiercely competitive business environment.

Details of the unaudited results, released at the Nigerian Stock Exchange (NSE) show that gross earnings rose by 18.8% from N34.4 billion in 2016 to N40.8 billion for the corresponding period as at March 31, 2017. Similarly Fidelity Bank profits in the period, surged by 20.5% from N4 billion in 2016 to N4.8 billion in 2017, just as it recorded growth in net interest income, deposits, loans and other performance indices.

Fidelity Bank CEO, Mr. Nnamdi Okonkwo, said the double digits growth in earnings and profits underscores the disciplined execution of its medium-term strategy and a business model that enables the bank to continue to deliver improved performance in line with its 2017 financial year targets. “Gross earnings growth was driven by a combination of increased yields on earning assets and an absolute growth in the volume of earning assets which led to a 24.1% year-on-year (y-o-y) growth in interest income,” he said.

Okonkwo also spoke about the impact of the bank’s efforts at reducing operating cost. He explained further that, “Our cost optimisation initiatives continued to deliver cost savings as total operating expenses declined y-o-y by 10.4% to N14.4 billion. This was driven by a decline in over 60% of our operating expense lines in Q1 2017. We will continue to optimize our cost profile without impacting service delivery through the disciplined execution of the initiatives from our recently completed business optimisation project.”

Deposits, which is a measure of customer confidence, in the period under review, grew quarter on quarter (q-on-q) by 0.9% to N800 billion in March 2017 from N793 billion as at December 2016, with low cost deposits accounting for 79.4% of total deposits. On the whole the bank’s retail strategy has continued to deliver impressive results with savings increasing by 5.6% to N163.7 billion as at March 31, 2017.

Ranked amongst the top Nigerian banks, Fidelity Bank has a strategic retail distribution network with presence in the major cities and commercial centres across the country. Rising from the recent rebranding exercise, the bank has become one of the most visible bank brands in Nigeria, gaining accolades and recognition for its superior e-banking products and services and promoting small businesses. Its SME financing strategy is delivered through a multi-faceted approach that includes robust business advisory, practical handholding and guidance of aspiring and existing entrepreneurs to building sustainable businesses.