Fidelity Bank reports 35% increase in profit to N37.8bn

In line with its upward growth trajectory, leading financial institution, Fidelity Bank Plc, has posted an impressive 34.7per cent growth in profits from N28.1billion at the end of Q3 2021 to N37.8billion for the nine months ended September 30, 2022.

This was made known in the Bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX).

According to the statement, Net Interest Margin improved to 6.2per cent from 4.7per cent in 2021FY, due to increased market yields while average funding cost remained unchanged YTD.

Average yield on earning assets increased by 166basis points to 11.7 per cent, while average funding cost stood at 4.3per cent, which resulted in 72.2 per cent YoY increase in net interest income to N111.9billion.

MD/CEO, Fidelity Bank, Nneka Onyeali-Ikpe in a statement said: “We are happy to report sustained growth across key financial indices in our 9 months 2022 results. Gross Earnings increased by 38.7per cent YoY to N241.9billion on account of 53.1 per cent growth in interest and similar income to N210.4billion from N137.4bn in 9M 2021.

“The increase in Interest Income was driven by improved yield on earnings assets and 16.3per cent YTD expansion in earnings base to N2,579.0billion.

“Similarly, total deposits increased by 13.3per cent YTD to N2,294.7billion from N2,024.8billion in 2021FY, driven by double-digit growth in low-cost deposits. Low-cost deposits increased by 24.2 per cent YTD to N1,873.6billion and now represents 81.7 per cent of total deposits from 74.5 per cent in 2021FY.

“FCY deposits increased by $432million (45.9per cent YTD) to $1.4billion and now accounts for 26.2per cent of total deposits from 19.7per cent in 2021FY, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space.

“The statement of account also showed considerable growth in Net Loans and Advances by 20per cent YTD to N1,989.3bn from N1,658.4billion in 2021FY with intervention fund facilities and the impact of naira devaluation accounting for 33.8 per cent of the absolute YTD growth in risk assets book. The Bank was able to keep Other Regulatory Ratios above the required thresholds maintaining its liquidity ratio at 41.3per cent and capital adequacy ratio (CAR) at 19.4per cent compared to the minimum requirement of 15per cent.

“We successfully redeemed our $400million Reg S /144a Senior Unsecured 5 -year Notes on 17th October 2022. Noteholders received a total of $421million covering the principal amount and the accrued six months coupon in line with the executed Trust Deeds. We look forward to sustaining the momentum in Q4 towards achieving our set targets for 2022 Financial Year.”