FIDELITY BANK CHECKMATED IN 2016.

From the audited figures for the year 2016 released by Fidelity Bank PLC recently, it was a year noted more for its checkmates except in one area: personnel cost.

In the first, place gross earnings grew by 3.45% to N152021m as a result if two checkmates.

The first was that interest income increased by 1.65% to N123153m but interest expense promptly deflated most of its benefits by growing by 1.54% to N61225m.

Then fee and commission had a year high income growth of 19.3% to N20557m but again, it was overwhelmed by 34.3% increase in fee and commission expense to N3238m.

Then even the elbow grip called checkmate turned into something else as operating income went down by 2.83% to N8311m; operating expense rose by 7.89% to N35662m and loss from financial instruments more than doubled to N625m.

As for impairment charges, growing by only 50.4% to N8671m in a recession year looked encouraging but then, place it alongside only 24.2% growth in loans and advances to N718401m, some of the encouragement evaporates.

Hence, the only area Fidelity Bank scored decisively well was in the management of personnel cost which ended the year up by only 0.39% to N27,231m, way behind growth in gross earnings 

In the end, Fidelity Bank PLC ended the year with 21.1% drop in profit before tax to N11061m leading to margin drop to 7.28% from 2015's 9.54%.

FIDELITY BANK PLC: Nm
                              2016.          2015
Gross earnings 152021.   146948
Interest inc        123153.    121158
Interest exp.       61225.       60294
Impairment.         8671.        5764
Fee & Comm.     20557.     17237
     ". Expense       3238.        2411
Other op. Income  8311.        8553
Fin. Instr. Gain   (625).          (291)
Personnel cost 27,231.      27125
Other op. Exp.   35662        33054
Profit b4 tax.     11061.       14024
Profit margin %  7.28.           9.54

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