Temitope
Temitope Akinola
Fidelity Bank's Q2 2015 results have shown a progress that is beyond the company's original forecasts.
Profit Before Tax (PBT) grew by 39 percent year over year (y/y). This is despite the y/y over year Profit After Tax coming in flat at N4.96bn. The growth in PAT is holistic as the bank had reported a negative result of -N1.2bn on the other comprehensive income line in Q2 2014 against N39m in Q2 2015. The PBT y/y is flattish as a result of a 4.9x expansion in loan provisions and a 15% y/y rise in opex. But profit after provisions was up by 20% y/y.
Also in the Profit and Loss Statement, both revenue lines contributed strongly to the 20% y/y expansion in profit before provisions. But the funding income, which increased by 22% y/y was stronger. This was as a result of relatively high yields, a 5% quarter over quarter (q/q) expansion in the loan book and a 3% q/q decline in deposit
PBT grew by 5% q/q but in contrast, PAT declined by -14% q/q. This is due to a significant reduction in other comprehensive income. When these results are compared to the company's forecasts, PBT and PAT increased by 38% and 41% respectively. This is due to profit before provisions which came in ahead and opex which exceeded by 4%.
Read more on Fidelity Bank's report
Profit Before Tax (PBT) grew by 39 percent year over year (y/y). This is despite the y/y over year Profit After Tax coming in flat at N4.96bn. The growth in PAT is holistic as the bank had reported a negative result of -N1.2bn on the other comprehensive income line in Q2 2014 against N39m in Q2 2015. The PBT y/y is flattish as a result of a 4.9x expansion in loan provisions and a 15% y/y rise in opex. But profit after provisions was up by 20% y/y.
Also in the Profit and Loss Statement, both revenue lines contributed strongly to the 20% y/y expansion in profit before provisions. But the funding income, which increased by 22% y/y was stronger. This was as a result of relatively high yields, a 5% quarter over quarter (q/q) expansion in the loan book and a 3% q/q decline in deposit
PBT grew by 5% q/q but in contrast, PAT declined by -14% q/q. This is due to a significant reduction in other comprehensive income. When these results are compared to the company's forecasts, PBT and PAT increased by 38% and 41% respectively. This is due to profit before provisions which came in ahead and opex which exceeded by 4%.
Read more on Fidelity Bank's report