Fidelity Bank posted a 37.9 per cent boost in gross earnings in the first quarter of the year, compared to the same period of last year, on the back of interest income, according to its latest financial report published on Monday.
Revenue came to N434.9 billion, up from N315.4 billion a year ago as the lender posted a fair rise in interest earned from loans, treasury bills and other investment securities, despite a 50-point cut in the monetary policy rate during the period under review.
Specifically, interest and similar income was up by 20.3 per cent at N353.3 billion.
Yet, much of the increase was eroded by cost pressures, with interest and similar expense soaring by 90.3 per cent, causing net interest to drop to N180.8 billion from N190.8 billion.
Fidelity Bank’s credit loss provision for the period accelerated 364.7 per cent to N29.2 billion as credit quality worsened, prompting the lender to set apart far more cash to cover bad loans, compared to a year ago.
