Fidelity Bank Plc has released its 2023 full year Audited Financial Statements, reporting a 131.5% growth in Profit Before Tax to N124.26 billion.
According to the result, which was issued to the Nigerian Exchange (NGX) today, the bank grew Gross Earnings by 64.9% to N555.83 billion, driven by 81.6% growth in Net interest income which increased from N152.7billion to N277.37 billion. This led to a Profit After Tax of N99.45 billion, representing a 112.9% annual growth.
Commenting on the performance, the MD/CEO, Dr. Nneka Onyeali-Ikpe, described it as commendable, as the bank closed the financial year with strong double-digit growth across key income and balance-sheet lines.
She continued: “Our performance in 2023 is an attestation of our capacity to deliver superior returns to shareholders despite the difficulties in our operating environment. Profit before tax grew by 131.5% to N124.3bn from N53.7bn in 2022FY, leading to an increase in Return on Average Equity (RoAE) of 26.5% from 15.6% in 2022FY.”
A review of the financial performance showed that the bank grew net interest income by 81.6% to N277.4 billion driven by a 55.5% increase in interest income, thus reflecting a steady rise in asset yield throughout the year. The average funding cost dropped by 20bps to 4.4% due to increased low-cost funds that grew from 83.6% in 2022 Financial Year to 97.4% in 2023. The combination of higher asset yield and lower funding cost led to an increase in Net Interest Margin of 8.1% from 6.3% in 2022.
Similarly, total customer deposits crossed the N4 trillion mark as deposits grew by 55.6% from N2.6 trillion in 2022. The increase was driven by 81.1% 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 N3.1 trillion from N2.1 trillion in 2022.
Also, in spite the growth in its loan portfolio, Regulatory Ratios were maintained well above the required thresholds, with liquidity ratio at 45.3% from 39.6% in 2022 and capital adequacy ratio at 16.2% compared to the minimum requirement of 15.0%.
“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,” explained Onyeali-Ikpe.
Fidelity Bank has consistently paid dividend since 2006. With the proposed final dividend of 60 kobo per share, Fidelity Bank would be paying investors a total dividend of 85 kobo per share for the reporting period, a 70.0% increase compared to the 50 kobo per share paid to its shareholders in the previous year.
Fidelity Bank is a full-fledged customer commercial bank with over 8.3 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the 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.
