FIDELITY BANK PLC: NO INFIDELITY BUT...

Fidelity Bank PLC continues to state in its payoff "we are fidelity" but somehow, in 2015 fidelity did not quite deliver the smiles. Instead, Fidelity Bank PLC reported drop in profit margin to 9.55% from 2014:s 11.4%.
According to the audited figures released recently, the road map in 2015 was twisted by slow down in non-core banking income, 33.9% increase in impairment provision and 31.5% in other than personnel cost.
Interest income had done well rising by 16.2% to N122158, ahead of interest expense growth (8.68% to N60294m) but gross income ended only 7.93% up at N146891m due principally to 41.8% dive in other operating income to N8496m and only 2.79% increase in fee and commission to N17237m.
The impairment provision recorded was N5764m compared to N4306 in 2014 while other operating expenses rose to N32997m from N25087m.
Thus, Fidelity bank ended 2015 with N14024m profit before tax down 9.61% on 2014 level.
It may be instructive that the drop in other operating income occurred while Fidelity adjusted its investment portfolio within the year almost emptying instruments held for sale in favour of doubling of value of those held to maturity and increasing the ones for sale by 28.3%.
There were slight increases in loans and advances; and borrowed funds and slight decrease on customers deposits.
SO:
* Some how, the task that must be done in 2016 is how to make fidelity put real smiles on stakeholders faces.
* It is interesting that Fidelity Bank income figures moved in the opposite direction of what was noticed by Henates while reviewing some other bank figures  in recent times.

FIDELITY BANK PLC (Nm)
                         2015.             2014
Gross income 146891.      136094
Inter. Income. 121158.      104307
Inter. Expense. 60864.        55481
Impairment.     5764.          4306
Fee & Comm. 17237.        17189
Fee expense.    2411.          2346
Other Op. Inc.   8496          14598
Personnel.       27125.       25874
Other expenses 32997.     25087
Profit B4 tax.    14024.      15515
Loans & Adv. 578203.      541686
Deposits.        769636.     820034
Investment:
Held for trading 4070.      83363
For sale.          116607.    90864
To maturity.    180736.   60526
Profit margin %    9.55.     11.4

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