Fidelity Bank Plc, has released its 2023 full year Audited Financial Statements, reporting a 131.5 per cent growth in Profit Before Tax to N124.26 billion from N53.7 billion reported in 2022.
According to the results, which was issued to the Nigerian Exchange Limited (NGX), the bank grew Gross Earnings by 64.9per cent YoY to N555.83 billion, driven by 81.6per cent 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 per cent annual growth from N46.72 billion in 2022.
Commenting on the Bank’s commendable performance, MD/CEO, Fidelity Bank, Dr. Nneka Onyeali-Ikpe, in a statement said “We closed the financial year with strong double-digit growth across key income and balance-sheet lines.
“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 131.5per cent to N124.3billion from N53.7billion in 2022FY, leading to an increase in Return on Average Equity (RoAE) of 26.5 per cent from 15.6per cent in 2022FY.”
A review of the financial performance showed that the bank grew Net interest income by 81.6 per cent to N277.4billion driven by a 55.5 per cent 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 per cent due to increased low-cost funds that grew from 83.6per cent in 2022FY to 97.4per cent in 2023.
“The combination of higher asset yield and lower funding cost led to an increase in Net Interest Margin (NIM) of 8.1 per cent from 6.3 per cent in 2022FY.
Similarly, Total Customer Deposits crossed the N4tn mark as deposits grew by 55.6per cent from N2.6trilliion in 2022FY. The increase was driven by 81.1per cent 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 N3.1trillon from N2.1trilliion in 2022FY.
Despite the growth in its loan portfolio, Regulatory Ratios were maintained well above the required thresholds, with liquidity ratio at 45.3 per cent from 39.6 per cent in 2022FY and capital adequacy ratio (CAR) at 16.2 per cent compared to the minimum requirement of 15 per cent.
“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.
