Fidelity Bank grows profit by 131.5% in FY 2023

Fidelity Bank grows profit by 131.5% in FY 2023

1 min read

Fidelity Bank Plc has unveiled its 2023 full-year Audited Financial Statements, showcasing an impressive 131.5% surge in Profit Before Tax to N124.26 billion.

The released results, made available to the Nigerian Exchange (NGX) today, highlight a remarkable 64.9% year-on-year growth in Gross Earnings, amounting to N555.83 billion. This surge was propelled by an 81.6% increase in Net interest income, soaring from N152.7 billion to N277.37 billion. Consequently, the bank recorded a Profit After Tax of N99.45 billion, representing a significant 112.9% annual growth.

Dr. Nneka Onyeali-Ikpe, OON, the MD/CEO of Fidelity Bank Plc, praised the bank’s commendable performance, stating, “We concluded the financial year with robust double-digit growth across key income and balance-sheet metrics. Our achievements in 2023 underscore our ability to deliver exceptional returns to shareholders despite the challenging operating environment.” She emphasized the substantial growth in Profit before tax, surging to N124.3 billion from N53.7 billion in 2022FY, resulting in an enhanced Return on Average Equity (RoAE) of 26.5%, up from 15.6% in 2022FY.

A detailed review of the financial performance revealed an 81.6% surge in Net interest income to N277.4 billion, driven by a 55.5% increase in interest income. This trend reflects a consistent rise in asset yield throughout the fiscal year. Additionally, the average funding cost decreased by 20 basis points to 4.4%, attributed to the growth of low-cost funds, which escalated from 83.6% in 2022FY to 97.4% in 2023. The synergy of higher asset yield and lower funding cost led to a notable increase in Net Interest Margin (NIM) to 8.1% from 6.3% in 2022FY.

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Furthermore, Total Customer Deposits surpassed the N4 trillion mark, with deposits soaring by 55.6% from N2.6 trillion in 2022FY. This surge was fueled by an 81.1% growth in low-cost funds.

Despite the daunting operating environment, the bank reiterated its commitment to fostering individual growth, enabling business prosperity, and facilitating economic empowerment by augmenting Net Loans & Advances to N3.1 trillion from N2.1 trillion in 2022FY. Notably, Regulatory Ratios remained well above the required thresholds, with a liquidity ratio of 45.3% compared to 39.6% in 2022FY and a capital adequacy ratio (CAR) of 16.2%, surpassing the minimum requirement of 15.0%.

Dr. Onyeali-Ikpe emphasized the bank’s proactive approach in navigating evolving risks within the Nigerian banking sector, while also highlighting the proposed final dividend of 60 kobo per share as a testament to Fidelity Bank’s commitment to robust value creation and shareholder returns.

Fidelity Bank has maintained a consistent dividend payout since 2006. With the proposed final dividend of 60 kobo per share, the bank will be disbursing a total dividend of 85 kobo per share for the reporting period, marking a substantial 70.0% increase compared to the 50 kobo per share distributed to shareholders in the previous year.

The Bank stands as a comprehensive customer commercial bank, serving over 8.3 million customers across its 251 business offices in Nigeria and the United Kingdom, as well as through digital banking channels. The bank’s accolades include prestigious local and international awards, further solidifying its position as a leading financial institution in Nigeria.

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