……Proposes 35 kobo dividend per share
Fidelity Bank Plc said it recorded 35.7per cent growth in Profit Before Tax (PBT) for its 2021 financial year to close the year at N38.1billion.
This was contained in the bank’s recently issued financial result.
Analysis of the results indicates that the bank grew gross earnings by 21.6per cent Year on Year (23.2per cent Quarter on Quarter (QoQ) to N250.8billion driven by a combination of 60.3per cent growth in Non-Interest Revenue (NIR) and 15.2per cent increase in interest and similar income.
The growth in NIR reflects the significant increase in customer transactions resulting in 84.9per cent growth in trade income, 48.1per cent in account maintenance charge, and 47.2per cent increase in digital banking income.
Commenting on the Bank’s performance, Managing Director/Chief Executive Officer, Fidelity Bank, Nneka Onyeali-Ikpe, said, “We closed the financial year with strong double-digit growth in profit and across key balance-sheet lines, which reflects the disciplined execution of our strategy and capacity to deliver superior returns to shareholders. Profit before tax grew by 35.7per cent to N38.1billion from N28.1billion in the 2020 Full Year, which translates to an increase in RoAE to 12.5per cent from 10.5per cent in the 2020 Full Year.
Other areas of the financial result recorded significant increases in the period under review with total interest and similar income increasing by N26.8billion.
Similarly, Total Deposits increased by 19.2per cent to N2.025trillion from N1.699trillion in the 2020 Full Year, Local currency deposits grew by 16.0per cent and account for 80.3per cent of Total Deposits while foreign currency deposits increased by 33.9per cent and account for 19.7per cent of Total Deposits from 17.5per cent in 2020 Full Year.
Detailing the contribution of the bank’s digital-led retail strategy to its financial performance, Onyeali-Ikpe said, “Digital Banking gained further traction driven by new initiatives in our retail business and the enhancement of existing digital banking products. We now have 56.0per cent of our customers enrolled on the mobile/internet banking products and 90.0per cent of total customer-induced transactions done on digital platforms with the digital banking business contributing 27.6per cent to net fee income.
Despite headwinds occasioned by the Covid-19 pandemic, the Bank’s share price rose by 35per cent between January 2021and April 01, 2022, placing it among the most actively traded stocks on the Nigerian bourse floor. The performance of the Bank’s share price is a reflection of the high investor confidence in its strong fundamentals and leadership team.
“My team and I are committed to achieving the long-term strategic objectives of Fidelity Bank while we look forward to sustaining the current performance trend and delivering a strong set of results for the 2022FY”, explained Onyeali-Ikpe.
