Fidelity Bank Plc has released its half year (H1) 2022 results recording a remarkable 21.6percent growth in profit to N21.6billion as well as decent growth in most key ratios.
According to the report released on the Nigerian Exchange (NGX) Limited on Tuesday August 30, 2022, the bank grew total deposits by 13.1percent year-to-date (YtD) to N2.290 trillion from N2.024trillion in 2021FY, driven by double-digit growth in low-cost deposits. Low-cost deposits increased by 26.1percent YtD to N1.902trillion and now represents 83.1percent of total deposits from 74.5percent in 2021FY, which explains the drop in funding cost.
“We are delighted with our H1 2022 performance which showed strong growth across key performance indices. With improved efficiency and customer experience around our network, customer transactions have grown considerably as we optimize our balance sheet and build up a large stock of stable low-cost deposits,” said Fidelity Bank’s CEO, Nneka Onyeali-Ikpe.
Gross Earnings increased by 37.9percent year-on-year (YoY) to N154.8billion on account of 52.9percent growth in interest income to N136.2billion from N89.1billion in H1 2021. The increase in Interest Income was driven by improved yield on earnings assets and 14.9percent YtD expansion in earnings base to N2.546trillion.
On the back of the positive H1 2022 performance, the board of fidelity bank approved an interim dividend of 10kobo per share, making it the first time the bank will pay an interim dividend in its 34years history.
The bank proposes an interim dividend of 10 kobo per share amounting to N2.896billion from retained earnings as at June 30, 2022.
Similarly, Net Interest Margin improved to 6.4percent from 4.7percent in 2021FY, due to a combination of improved yields on average earning assets and a decline in average funding cost. Average yields on earning assets increased by 211bps YoY to 11.5percent while average funding cost declined by 84basis points (bps) to 4percent YoY, which resulted in 50.4percent growth in net interest income to N75.6billion.
Read also: Banks’ interest income jumps in H1 on rate hike
The release of the half year results coincides with the bank’s recent announcement on expanding to the United Kingdom with its proposed purchase of Union Bank UK.
Commenting on the proposed acquisition, Onyeali-Ikpe said: We recently executed a binding agreement for the acquisition of 100percent equity stake in Union Bank UK Plc in line with our strategic objectives and business expansion drive. Union Bank UK offers a compelling synergy we hope to build on, to create a scalable and more sustaining service franchise that will support the wider ecosystem of our trade businesses and diaspora banking services.
The interim dividend which is subject to appropriate withholding tax will be paid to shareholders whose names appear in the Register of Members as at the close of business on September 12, 2022.
The Register of Shareholders will be closed on September 13, 2022. Qualification Date is September 12, 2022.
On September 20, 2022 dividends will be paid electronically to shareholders whose names appear on the Register of Members as at September 12, 2022 and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 million customers serviced across its 250 business offices and digital banking channels. The bank was recently recognized as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.