Fidelity Bank Plc, has recorded a 131.5 per cent leap in its pre-tax profit to N N124. 26 billion for the year ended 2023.
According to the result which was issued to the Nigerian Exchange (NGX) today, the bank grew Gross Earnings by 64.9% Year-on-Year to N555.83 billion, driven by 81.6% growth in Net interest income which increased from N152.7 billion to N277.37 billion.
This led to a Profit After Tax of N99.45 billion representing a 112.9 per cent annual growth.
Commenting on the Bank’s commendable performance, Dr. Nneka Onyeali-Ikpe,OON, MD/CEO of Fidelity Bank Plc said, “We closed the financial year with strong double-digit growth across key income and balance-sheet lines. Our performance in 2023 is an attestation of our capacity to deliver superior returns to shareholders despite the difficulties in our operating environment. Profit before tax grew by 131.5 per cent to N124.3bn from N53.7 billion in the 2022 financial year, leading to an increase in Return on Average Equity (RoAE) of 26.5 per cent from 15.6 per cent in the 2022 financial year.”
A review of the financial performance showed that the bank grew Net interest income by 81.6% to N277.4bn driven by a 55.5% increase in interest income, thus reflecting a steady rise in asset yield throughout the year. The average funding cost dropped by 20bps to 4.4% due to increased low-cost funds that grew from 83.6 per cent in 2022FY to 97.4 per cent in 2023. The combination of higher asset yield and lower funding cost led to an increase in Net Interest Margin (NIM) of 8.1% from 6.3 per cent in 2022FY.
Similarly, Total Customer Deposits crossed the N4 trillion marks as deposits grew by 55.6 per cent from N2.6 trillion in 2022FY. The increase was driven by 81.1 per cent growth in low-cost funds.
Despite the challenging operating environment, the bank reaffirmed its devotion to helping individuals grow, inspiring businesses to thrive and empowering economies to prosper by increasing Net Loans & Advances to N3.1 trillion from N2.1tn in 2022FY.
Despite the growth in its loan portfolio, Regulatory Ratios were maintained well above the required thresholds, with liquidity ratio at 45.3 per cent from 39.6 per cent in 2022FY and capital adequacy ratio (CAR) at 16.2 per cent compared to the minimum requirement of 15.0 per cent.
“We recognize the changing dynamics in the Nigerian banking space and the need to monitor and proactively manage evolving risks. The proposed final dividend of 60 kobo per share reflects our commitment to strong value creation and returns to our shareholders”, explained Onyeali-Ikpe.
