Fidelity Bank Grows Pre-tax Profit By 131.5% In 2023

Fidelity Bank Plc, has posted a 131.5 per cent growth in profit before tax to N124. 26 billion for the year ended December 31, 2023.

Also, the Bank proposed a final dividend payout of 60 kobo per share to shareholders for the 2023 financial year. This is in addition to the 25 kobo interim dividend paid, making a total dividend of 85 kobo per share for the reporting period, a 70.0 per cent increase compared to the 50 kobo per share paid to its shareholders in the previous year.

The audited results, which was issued to the Nigerian Exchange (NGX), showed that the Bank’s gross earnings grew by 64.9 per cent YoY to N555.83 billion, driven by 81.6 per cent 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.

Speaking on the Bank’s performance, MD/CEO of Fidelity Bank, Dr. Nneka Onyeali-Ikpe, 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.”

A review of the financial performance showed that the bank grew net interest income by 81.6 per cent to N277.4 billion driven by a 55.5 per cent increase in interest income, thus reflecting a steady rise in asset yield throughout the year. 

RELATED

Sujimoto Pays ₦273m Salary Arrears, Eyes Construction Of Tallest Tower In Banana Island

13 hours ago

Despite 50% Tariff Hike, Internet Usage Hits 1m TB In May

1 day ago

The average funding cost dropped by 20bps to 4.4 per cent due to increased low-cost funds that grew from 83.6 per cent in 2022 full year 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 per cent from 6.3 per cent in 2022 full year.

Similarly, total customer deposits crossed the N4 trillion mark as deposits grew by 55.6 per cent from N2.6 trillionn in 2022 full year. 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 N3.1trillion from N2.1 trillion in 2022 full year.

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 2022 full year and capital adequacy ratio (CAR) at 16.2 per cent compared to the minimum requirement of 15.0 per cent.

Onyeali-Ikpe said that “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.”