Fidelity Bank Plc has posted an impressive 120.1 percent growth in Profit Before Tax from N17.9billion at the end of first quarter (Q1) of 2023 to N39.5billion for Q1 2024.
This was made known in the bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) on Tuesday, 30 April 2024.
According to the statement, the bank’s gross earnings increased by 89.9 percent year-on-year (yoy) to N192.1billion from N101.1billion in Q1 2023.
The increase was led by a combination of interest income (90.7 percent yoy) and non-interest income (84.0 percent yoy).
Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, FX-related income, trade, banking services, and remittances, supported by increased customer transactions.
Commenting on the results, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc stated, “We are pleased to report another quarter of strong financial performance driven by our strategic focus on customer-centricity, digital innovation and operational excellence. Despite the challenging macroeconomic environment, we remained resilient and agile, delivering double-digit growth on key income lines while advancing our business sustainability agenda.”
“Beginning the year on this inspiring note reaffirms our strategy of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper. We are committed to our guidance as we build a more resilient business franchise with a well-diversified earnings base in 2024,” Onyeali-Ikpe said.
In the period under review, the bank grew Net interest income grew by 89.5 percent yoy to N99.6billion from N52.6billion in Q1 2023, driven by interest and similar income as the yield on financial instruments improved to 14.7 percent from 10.1 percent in Q1 2023 (2023FY: 11.6 percent).
In line with the steady rise in interest rates through the year, average funding cost increased by 80 basis points (bps) ytd to 5.2 percent. However, NIM came in at 8.8 percent compared to 8.1 percent in 2023FY, as increased yield on earning assets surpassed funding cost to 15.1 percent from 13.3 percent in Q1 2023 (2023FY: 13.5 percent).
Similarly, Total Deposits increased by 17.2 prrcent year to date (ytd) to N4.7trillion from N4trillion in 2023FY, driven by double-digit growth across all deposit types (demand, savings and term). Net Loans and Advances increased by 21.2 percent to N3.7trillion from N3.1trillion in 2023FY.
