Fidelity Bank Increases Profits By 34.7 Percent To N37.8bn In 9 Month

Fidelity Bank Increases Profits By 34.7 Percent To N37.8bn In 9 Month

In line with its upward growth trajectory, leading financial institution, Fidelity Bank Plc, has posted an impressive 34.7 percent growth in profits from N28.1 billion at the end of Q3 2021 to N37.8 billion for the 9M 2022. 

This was made known in the Bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) on Friday, October 28, 2022, made available to newsdishng.com by Mr. Goodluck​ Nathan, of the bank’s Team Member, Brand and Communications Division.

According to the statement, Net Interest Margin improved to 6.2 percent from 4.7 percent in 2021FY, due to increased market yields while average funding cost remained unchanged YTD. Average yield on earning assets increased by 166bps to 11.7 percent while average funding cost stood at 4.3 percent, which resulted in 72.2 percent YoY increase in net interest income to N111.9 billion.

Commenting on the results, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc stated: We are happy to report sustained growth across key financial indices in our nine months 2022 results. Gross Earnings increased by 38.7 percent YoY to N241.9 billion on account of 53.1 percent growth in interest and similar income to N210.4 billion from N137.4 billion in 9M 2021. The increase in Interest Income was driven by improved yield on earnings assets and 16.3 percent YTD expansion in earnings base to N2,579.0 billion.

Similarly, Total Deposits increased by 13.3 percent YTD to N2, 294.7 billion from N2,024.8 billion in 2021FY, driven by double-digit growth in low-cost deposits. Low-cost deposits increased by 24.2 percent YTD to N1,873.6 billion and now represents 81.7 percent of total deposits from 74.5 percent in 2021FY. FCY deposits increased by $432m (45.9 percent YTD) to $1.4bn and now accounts for 26.2 percent of total deposits from 19.7 percent in 2021FY, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space.

The statement of account also showed considerable growth in Net Loans and Advances by 20.0 percent YTD to N1, 989. 3bn from N1, 658.4 billion in 2021FY with intervention fund facilities and the impact of naira devaluation accounting for 33.8 percent of the absolute YTD growth in risk assets book. The Bank was able to keep Other Regulatory Ratios above the required thresholds maintaining its liquidity ratio at 41.3 percent and Capital Adequacy Ratio (CAR) at 19.4 percent compared to the minimum requirement of 15.0 percent.

“We successfully redeemed our $400 million Reg S/144a Senior Unsecured 5-year Notes on 17th October 2022. Noteholders received a total of $421 million covering the principal amount and the accrued 6 months coupon in line with the executed Trust Deeds. We look forward to sustaining the momentum in fourth quarter towards achieving our set targets for 2022 Financial Year,” explained Onyeali-Ikpe.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 7.2 million customers serviced across its 250 business offices and digital banking channels. 

The bank was recently recognized as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards and received the Platinum and Service Ambassadors awards from the Development Bank of Nigeria (DBN) for its support of small businesses in the country. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.