Nigerian Fidelity, Skye Banks record decline in 2011 PBT
The duo of Fidelity Bank and Skye Bank, Monday posted a decline in their profit margin in 2011 financial year.
Fidelity Bank’s pre-tax profit for 2011 fell 11.32 percent to 7.67 billion naira from 8.65 billion naira in the previous year, the bank said in a statement to the Nigerian Stock Exchange.
Gross earnings rose to 70.04 billion naira, from 56.04 billion naira in 2010, the bank said.
It also declared a dividend of 0.14 naira per share.
Fidelity Bank shares rose 4.93 percent, almost the 5 percent maximum allowed in a day’s trading on the local bourse, on Monday to 1.49 naira per share, after it announced its earning results.
Also, Skye Bank’s pre-tax profit fell by 45.5 percent to 6.51 billion naira in 2011, down from 12.73 billion naira the previous year, and it declared a dividend of 0.25 naira per share.
Gross earnings rose to 104.83 billion naira for 2011, from 83.97 billion in 2010, the bank said in a statement through the Nigerian Stock Exchange.
It did not explain the fall in profit despite rising revenues, but a number of Nigerian banks have issued disappointing results for 2011 because of write downs of non-performing loans left over from a 2008/9 banking crisis.