Fidelity Bank Bahamas has returned to profitability for the six months ended June 30, 2011, as the BISX-listed company recorded $2.2 million in total comprehensive income for the period.
The $2.2 million in profits is a massive turnaround from the same period last year, when the bank recorded a loss of $327,247 in total comprehensive income. Chief Executive Officer of Fidelity Bank Anwer Sunderji said the financial institution is heading in the right direction, evidenced by the latest results.
"We are pleased with the continuing improvement in the bank's fundamentals, Sunderji said. "The bank is on track for sustained improvement in profitability over the near term as the economy improves. Loan arrears are elevated but remain comfortably below industry experience."
Year to date, total assets for the bank increased by 11 percent from $282 million from the period ended December 31, 2010, loans rose by 7.2 percent to $228 million and total capital grew by 6.3 percent to $36.9 million.
For the six months ended June 30, 2011, total expenses slightly decreased by 1.5 percent to $6.7 million from $6.8 million year-on-year. Provisions for loan losses also dipped by 65 percent to $231,391 from $669,060 and net interest income increased 58 percent from $3.9 million to $6.2 million.
The first half performance marks the second consecutive quarter for the fiscal year that the bank has recorded an increase in profits, posting $1.06 million in net income for the three months ended March 31, 2011. Also during that first quarter, total income increased 41 percent from $3.1 million in 2010 to $4.39 million in 2011, with net interest income rising 53 percent from $1.98 million to $3.05 million and non-interest income improving 19.3 percent from $1.12 million to $1.33 million in 2011.
Sunderji said while the economy gradually improves going forward, the bank will stick to the basics to foster its growth. "Improving job prospects over the next few months will hopefully result in a gradual downward trend although we fully expect that recovery in asset quality will take several years," he said. "In the meantime, we remain focused on managing the bank's fundamentals."
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