Fidelity Bank Plc. FY’16 results – Earnings lag consensus estimate, declines 30% YoY

Must Read

Jumia in trouble over Fraud in Affiliate Scheme, JForce

E-commerce company, Jumia is currently enmeshed in a case of internal fraud involving its affiliate marketing programme, otherwise known...

UBA Board Proposes Interim Dividend, Okays H1 2019 Results

The Board of United Bank for Africa Plc, at its meeting of Thursday, August 22, 2019, considered and approved...

Innoson motors price list: cheap cars in Nigeria

Millions of Nigerians cannot allow buying a new car because it is too expensive. However, the biggest Nigerian car...
- Advertisement -
Fidelity Bank Plc. (FIDELITYBK) FY’16 results – Gross earnings increased slightly by 3.4% to N152.0 billion, in line with our estimate of N147 billion (3.4% deviation). After tax earnings declined by 30.0% to N9.7 billion, behind our estimate and consensus estimate of N11.2 billion and N12.7 billion respectively.
Other highlights :
  • Impairment charges increased by 50.4% to N8.7 billion in FY’16 but declined by 78.1% QoQ to N0.7 billion in Q4’16. Non-performing loans (NPLs) also surged to 6.6% in FY’16 from 4.5% in 9M’16.
  • Operating expenses increased by 4.8% to N67.2 billion due to a N4.8 billion one-off gratuity retirement cost as the bank discontinued its legacy gratuity retirement scheme – discounting this impact, OPEX would have declined by 2.6% and PBT would have grown by 13% (versus the 21.1% decline).
  • Net loans grew by 24.2% to N718.1 billion in FY’16 with Naira devaluation accounting for 79% (N110.9 billion) of the total credit growth.
Read:  Fidelity Bank Reaffirm Support for SMEs, Holds SMEs Funding Connect Forum August 7th
Total asset and net asset grew by 5.4% and 1% to N1.3 trillion and N185.4 billion respectively. Fidelity bank  declared a dividend of 14 kobo, translating to a dividend yield of 16.7%.
Displaying Picture1.jpg
Further analysis to be released after the bank’s conference call.
Kindly click here for a copy of Fidelity Bank Plc FY’16 results…
(Cardinal Stone Research)
- Advertisement -


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

Facebook Celebrates ‘Icons Of Change’ From Across Sub-Saharan Africa With A Youth Gathering In Accra, Ghana

Facebook is bringing together 40 young leaders, developers, entrepreneurs and change-makers from across Sub-Saharan Africa, to a two-day event...

Devastation Is The Major Threat To Telecom Growth In Nigeria – NCC

The Nigerian Communications Commission (NCC), has known the destruction of telecom infrastructure as the biggest intimidation to the growth of the telecommunication industry in...

Quickteller Chooose Winners To Make An Appearance At Interswitch One Africa Music Fest in London

Quickteller, a leading digital consumer payments platform in Nigeria, is set to take another set of winners on an all-expense-paid trip to the London...


Residents of Magodo Estate have acclaimed Ikeja Electric Plc (IE) for rendering constant electricity to customers within the Estate following the signing of the...

More Articles Like This