Amidst its soaring growth trajectory, Fidelity Bank Plc, a prominent financial institution, has showcased a remarkable surge of 120.1% in Profit Before Tax, escalating from N17.9bn in Q1 2023 to N39.5bn in Q1 2024.
This notable achievement was unveiled through the bank’s unaudited financial statements, unveiled on the issuer portal of the Nigerian Exchange (NGX) on Tuesday, April 30, 2024.
The statement delineated a robust 89.9% year-on-year increase in Gross Earnings, catapulting to N192.1bn from N101.1bn in Q1 2023. This upswing was spearheaded by a blend of interest income, marking a 90.7% rise, and non-interest income, soaring by 84.0% year-on-year. The surge in interest income was fueled by a buoyant yield environment and a robust earning assets base, while the uptick in non-interest income was propelled by substantial growth in account maintenance charges, FX-related income, trade, banking services, and remittances, buoyed by heightened customer transactions.
In her remarks on the outcomes, Nneka Onyeali-Ikpe, the MD/CEO of Fidelity Bank Plc, affirmed, “We are delighted to announce another quarter of robust financial performance, underpinned by our strategic emphasis on customer-centricity, digital innovation, and operational excellence. Despite the testing macroeconomic landscape, we maintained resilience and agility, achieving double-digit growth on pivotal income streams while advancing our business sustainability agenda.”
During the period scrutinized, the bank witnessed a striking 89.5% year-on-year surge in Net Interest Income, ascending to N99.6bn from N52.6bn in Q1 2023, propelled by interest and similar income, buoyed by an improved yield on financial instruments at 14.7%, compared to 10.1% in Q1 2023 (2023FY: 11.6%). In tandem with the gradual ascent in interest rates throughout the year, the average funding cost increased by 80 basis points year-to-date to 5.2%. However, Net Interest Margin (NIM) stood at 8.8%, up from 8.1% in 2023FY, as the augmented yield on earning assets outpaced funding costs to 15.1% from 13.3% in Q1 2023 (2023FY: 13.5%).
Likewise, Total Deposits experienced a robust year-to-date increase of 17.2%, ascending to N4.7tn from N4.0tn in 2023FY, propelled by double-digit growth across all deposit types (demand, savings, and term). Net Loans and Advances witnessed a commendable surge of 21.2% to N3.7tn from N3.1tn in 2023FY.
“On a buoyant start to the year, this encouraging performance reaffirms our strategy of fostering individual growth, catalyzing business prosperity, and empowering economies to flourish. We are steadfast in our commitment as we cultivate a more resilient business franchise with a well-diversified earnings base in 2024,” elucidated Onyeali-Ikpe.
Regarded as one of Nigeria’s premier banks, Fidelity Bank stands as a comprehensive customer commercial bank, catering to over 8.5 million customers across its 251 business offices in Nigeria and the United Kingdom, along with its digital banking channels.
The bank’s accolades include being recognized as the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, Best Payment Solution Provider Nigeria 2023, and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards, Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023, and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.
