Data compiled by BusinessDay has revealed that the total assets of Fidelity Bank Plc, a financial institution in Nigeria, rose to the highest in at least 13 years.
According to the bank’s latest financial statement, its assets grew to N6.23 trillion last year from N3.98 trillion in 2022.
The growth of the lender’s assets can be attributed to its increase in loans and advances to customers within the period, which rose by 46 percent to N3.09 trillion from N2.11 trillion.
Bank assets are the things owned by a bank that help bring value, generally more specific to money-related assets and interest. The assets can range from investments to physical assets to loans.
According to a statement, the estimated fair value of loans and advances represents the discounted amount of estimated future cash flows expected to be received.
Olumide Sole, research analyst at Vetiva Capital Management Limited, said the devaluation experienced in the second quarter of last year played a role in the increased asset value for banks.
“The devaluation, benefiting from the naira devaluation, affected the banks’ balance sheets and liabilities denominated in foreign currency, leading to an overall rise in their asset value when reported in naira,” he said.
Further analysis of the bank’s financial statement showed that the loans to corporate and other organisations increased to N3.61 trillion from N2.12 trillion.
Its loans to individuals rose to N76 billion from N66 billion. The banks’ restricted balances with the Central Bank of Nigeria rose to N1.17 trillion from N863 billion.
The restricted balance includes mandatory reserve deposits with the CBN, and special cash reserves, which grew to N945 billion from N614 billion and N229 billion to N248 billion, respectively.
“Mandatory reserve deposits are not available for use in the Bank’s day-to-day operations. It represents a percentage of the Customers’ deposits and is non-interest-bearing. While special cash reserve represents special Intervention funds held with the apex bank as a regulatory requirement,” the statement said.
In the same vein, the bank’s total liability increased by 57 percent to N5.79 trillion from N3.67 trillion in 2022.
This growth in the bank’s liability can be attributed to deposits received by its customers in 2023.
Deposits from its customers rose to N4 trillion from N2.5 trillion. This amount comprises customers’ time, demand, domiciliary savings, and others during the period.
The bank’s book value of shareholders’ equity which comprises its share capital, share premium, and retained earnings rose by 20.5 percent to N194 billion from N161 billion in 2022.
Its comprehensive income increased to N129 billion from N42 billion within the reviewed periods.
Fidelity Bank’s basic and diluted earnings per share attributable to equity holders increased to N310.79 from N161.32.
