Fidelity Bank Reports ₦9.1 Billion Profit in the Third Quarter of 2020

Fidelity Bank Plc, one of the nation’s leading lenders, declared ₦9.102 billion profit after tax for the third quarter (Q3) of 2020 despite the COVID-19 challenges and the headwinds that sent many businesses up to the galore.

In the financial statements published through the Nigerian Stock Exchange, the bank reported gross earnings of ₦49.275 billion in the third quarter of 2020, down from the ₦57.399 billion posted in the third quarter of 2019.

Other interest and similar income increased from ₦1 billion achieved in the corresponding quarter of 2019 to ₦3.667 billion in the quarter under review.

Also, the lender managed to reduce interest expense from ₦27.939 billion filed in the third quarter of 2019 to ₦18.167 billion in the third quarter of 2020.

This brings the net interest income to ₦26.485 billion in the quarter, up from ₦21.347 billion reported in the same quarter of 2019.

Net interest income after credit loss grew to ₦23.485 billion from ₦20.864 billion recorded in the corresponding period of 2019.

Fee and commission income declined from ₦6.193 billion in Q3 2019 to ₦4.955 billion in 2020 while fee and commission expense rose to ₦1.607 billion from ₦1.369 billion in Q3 2019.

Therefore, profit before tax dipped from ₦10.785 billion achieved in the third quarter of 2019 to ₦9.385 billion in the third quarter of 2020. Subsequently, profit after tax moderated from ₦10.557 billion to ₦9.102 billion in the third quarter ended September 30, 2020.

Earnings per share declined by 5 kobo to 31, down from 36 kobo posted in Q3 2019.

Despite the decline in profit, Fidelity bank thrives across the board when COVID-19 negative impacts and two devaluations of the local currency are factored-in.