Fidelity Bank Plc 9M 2018- Interest Income Propels PBT of N20 billion

Dear Client/Reader,

Fidelity Bank Plc. results for 9M 2018 showed an impressive PBT growth of 24% y/y from N16.2 bn in 9M’17 to N20 bn. The key driver behind the PBT growth was the growth of 9% y/y in interest income and 55% reduction in impairment charges which were strong enough to partly offset the impact of the increase in interest expense by 10% y/y and a decline of 41% y/y in other operating income. Non-interest income (NIR) declined by 8% y/y to N18.3 bn (9M’17; N20 bn) while operating expenses also saw a growth of 6.5% y/y to N50.6 bn (9M’17; N47.5 bn). However, PAT grew by 23.6% y/y to N17.9 bn (9M’16; N14.5 bn). Consequently, Earnings per share grew by 24% y/y from N0.50 in 9M’17 to N0.62 in the current period.

Key Multiples/Ratios

  Book Value Per Share- 6.64

  Net Profit Margin-  12.85%

  Return on Equity – 9.28%

  Return on Asset- 1.06%

  Price to book value- 0.30x

  Year-to-Date Change- 18.70%

  Total Loan to Total Deposit- 163.84%

  Current Shares Outstanding-  28.96 billion

  Recommendation- BUY

Please find attached Fidelity Bank Plc. 9M-2018 result.

Earnings Flash- Fidelity Bank Plc. 9M-2018