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Fidelity Bank Thrives Despite Headwinds, Posts N9.1 Billion Profit in Q3 2020

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Fidelity Bank Reports N9.1 Billion Profit in the Third Quarter of 2020

Fidelity Bank Plc, one of the nation’s leading lenders, declared N9.102 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 N49.275 billion in the third quarter of 2020, down from the N57.399 billion posted in the third quarter of 2019.

Other interest and similar income increased from N1 billion achieved in the corresponding quarter of 2019 to N3.667 billion in the quarter under review.

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Also, the lender managed to reduce interest expense from N27.939 billion filed in the third quarter of 2019 to N18.167 billion in the third quarter of 2020.

This brings the net interest income to N26.485 billion in the quarter, up from N21.347 billion reported in the same quarter of 2019.

Net interest income after credit loss grew to N23.485 billion from N20.864 billion recorded in the corresponding period of 2019.

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Fee and commission income declined from N6.193 billion in Q3 2019 to N4.955 billion in 2020 while fee and commission expense rose to N1.607 billion from N1.369 billion in Q3 2019.

Therefore, profit before tax dipped from N10.785 billion achieved in the third quarter of 2019 to N9.385 billion in the third quarter of 2020. Subsequently, profit after tax moderated from N10.557 billion to N9.102 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.

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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.