In line with its upward growth trajectory, leading financial institution, Fidelity Bank Plc, has posted a 120.1 per cent growth in Profit Before Tax from N17.9 billion at the end of first quarter (Q1) of 2023 to N39.5 billion 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, Gross Earnings increased by 89.9 per cent year-on-year (yoy) to N192.1 billion from N101.1bn in Q1 2023. The increase was led by a combination of interest income (90.7 per cent yoy) and non-interest income (84.0 per cent 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.”
In the period under review, the bank grew Net interest income grew by 89.5 per cent yoy to N99.6bn from N52.6bn in Q1 2023, driven by interest and similar income as the yield on financial instruments improved to 14.7 per cent from 10.1 per cent in Q1 2023 (2023FY: 11.6 per cent). In line with the steady rise in interest rates through the year, average funding cost increased by 80 basis points ytd to 5.2 per cent.
However, NIM came in at 8.8 per cent compared to 8.1 per cent in 2023FY, as increased yield on earning assets surpassed funding cost to 15.1 per cent from 13.3 per cent in Q1 2023 (2023FY: 13.5 per cent).
Similarly, Total Deposits increased by 17.2 per cent ytd to N4.7 trillion from N4.0 trillion in 2023FY, driven by double-digit growth across all deposit types (demand, savings and term). Net Loans and Advances increased by 21.2 per cent to N3.7 trillion from N3.1 trillion in 2023FY.
“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,” explained Onyeali-Ikpe.
Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.5 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.
The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.