Fidelity Bank Plc posted 34.7percent profit growth of N37.8billion for the third-quarter (Q3) period that ended September 30, 2022.
The impressive report in line with the bank’s upward growth trajectory was made known last Friday, October 28, 2022, in its unaudited financial statements released to investing public at the Nigerian Exchange Limited (NGX).
According to the statement, Net Interest Margin improved to 6.2percent, from 4.7percent in the 2021 full year (FY), due to increased market yields while average funding cost remained unchanged year-to-date (YtD). The average yield on earning assets increased by 166bps to 11.7percent while average funding cost stood at 4.3percent, which resulted in a 72.2percent year-on-year (YoY) increase in net interest income to N111.9billion.
Commenting on the results, Nneka Onyeali-Ikpe, managing director/CEO, Fidelity Bank Plc stated: We are happy to report sustained growth across key financial indices in our 9 months 2022 results. Gross Earnings increased by 38.7percent YoY to N241.9billion on account of 53.1percent growth in interest and similar income to N210.4billion from N137.4billion in 9M 2021. The increase in Interest Income was driven by the improved yield on earning assets and 16.3percent YtD expansion in earnings base to N2.579trillion.
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Similarly, total deposits increased by 13.3percent YtD to N2.294trillio from N2.024trillion in 2021FY, driven by double-digit growth in low-cost deposits. Low-cost deposits increased by 24.2percent YtD to N1.873trillio and now represents 81.7percent of total deposits from 74.5percent in 2021FY. FCY deposits increased by $432m (45.9percent YtD) to $1.4billion and now accounts for 26.2percent of total deposits from 19.7percent 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 20percent YtD to N1.989trillion from N1.658trillion in 2021FY with intervention fund facilities and the impact of naira devaluation accounting for 33.8percent 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 41.3percent and capital adequacy ratio (CAR) at 19.4percent compared to the minimum requirement of 15percent.
“We successfully redeemed our $400million Reg S /144a Senior Unsecured 5 -year Notes on 17th October 2022. Noteholders received a total of $421mn covering the principal amount and the accrued 6 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,” explained Onyeali-Ikpe.
