Fidelity Bank Plc, has posted 120.1 per cent growth in profit before tax for the first quarter (Q1) period ended March 31, 2024.
The Bank Q1 results released on the Nigerian Exchange (NGX) revealed that pre-tax profit for the period under review stood at N39.5 billion as against N17.9 billion at the end of Q1, 2023.
Gross Earnings increased by 89.9 per cent year-on-year (yoy) to N192.1 billion from N101.1 billion in Q1, 2023. The increase was led by a combination of interest income of 90.7 per cent yoy and non-interest income of 84.0 per cent yoy.
Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, FX-related income, trade, banking services, and remittances, supported by increased customer transactions.
Speaking on the results, MD/CEO, Fidelity Bank, Nneka Onyeali-Ikpe stated, “we are pleased to report another quarter of strong financial performance driven by our strategic focus on customer-centricity, digital innovation and operational excellence. Despite the challenging macroeconomic environment, we remained resilient and agile, delivering double-digit growth on key income lines while advancing our business sustainability agenda.”
In the period under review, the bank grew net interest income by 89.5 per cent to N99.6 billion from N52.6 billion in Q1, 2023, driven by interest and similar income as the yield on financial instruments improved to 14.7 per cent from 10.1 per cent in Q1, 2023. In line with the steady rise in interest rates through the year, average funding cost increased by 80 basis points year-to-date to 5.2 per cent.
However, net interest margin came in at 8.8 per cent compared to 8.1 per cent in 2023 full year, as increased yield on earning assets surpassed funding cost to 15.1 per cent from 13.3 per cent in Q1 2023.
Similarly, total deposits increased by 17.2 per cent year-to-date to N4.7 trillion from N4.0 trillion in 2023FY, driven by double-digit growth across all deposit types (demand, savings and term).
Net loans and advances increased by 21.2 per cent to N3.7 trillion from N3.1 trillion in 2023FY.
“Beginning the year on this inspiring note reaffirms our strategy of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper.
We are committed to our guidance as we build a more resilient business franchise with a well-diversified earnings base in 2024,” explained Onyeali-Ikpe.
