Fidelity Bank Plc Gains 120.1% PBT in Q1 2024

Fidelity Bank Plc recently announced a 120.1% growth in profit before tax in the first quarter (Q1), which ended March 31, 2024. The bank recorded N39.5bn for Q1 2024, which was far from the corresponding period at the end of Q1 2023, which settled at N17.9bn. This was announced in the bank's unaudited financial statements, posted on the Nigerian Exchange (NGX) issuer portal on Tuesday, April 30, 2024.


The statement said Fidelity Bank Plc's gross earnings increased from N101.1 billion in Q1 2023 to N192.1 billion in Q2 2023, which signifies an increase of 89.9% year over year. The increase was driven by a combination of interest income (90.7% year over year) and non-interest income (84.0% year over year). 


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According to the website, Fidelity Bank Plc's growth in interest income was driven by a strong earning asset base and a higher yield environment, while the growth in non-interest income was driven by an increase in customer transactions and double-digit growth in account maintenance fees, FX-related income, trade, banking services, and remittances. 


Commenting on the results, Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank Plc, 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."


The bank reported that during the reviewed period, net interest income increased by 89.5% year over year to N99.6 billion from N52.6 billion in Q1 2023. The growth was primarily driven by interest and similar income, as the yield on financial instruments increased to 14.7% from 10.1% in Q1 2023 (2023FY: 11.6%). 


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The bank's average funding cost increased by 80bps ytd to 5.2%, in line with the annual increase in interest rates. However, NIM came in at 8.8% compared to 8.1% in the 2023 FY, as increased yield on earning assets surpassed funding costs to 15.1% from 13.3% in Q1 2023 (2023 FY: 13.5%).


Total deposits rose by 17.2% YTD to N4.7 trillion from N4.0 trillion in 2023 FY, driven by double-digit growth across all deposit types (demand, savings, and term). Net Loans and Advances increased by 21.2% to N3.7tn from N3.1tn in 2023 FY.


Onyeali-Ikpe added, 


"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." 


For the 2023 fiscal year, Fidelity Bank's directors have proposed paying shareholders a final dividend of 60 kobo per share. This represents a 20% increase over the dividend payment of 50 kobo last year.


This announcement also was revealed in its audited annual reports and financial statements for 2023, which were filed with the Nigerian Exchange Limited.


Fidelity Bank, one of the top banks in Nigeria, serves over 8.5 million clients through its 251 business offices in Nigeria and the UK and digital banking platforms. It is a fully functional commercial bank.


In 2023, the bank was named Export Finance Bank of the Year at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards. The Global Banking and Finance Awards also recognised Fidelity Bank as the Best Payment Solution Provider in Nigeria in 2023 and the Best SME Bank in Nigeria in 2022. The Euromoney Awards for Excellence in 2023 named it the Best Bank for SMEs in Nigeria, and the Euromoney Global Private Banking Awards in 2023 named it the Best Domestic Private Bank in Nigeria.


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