Fidelity Bank grows Profits by 34.7% to N37.8bn in 9M 2022
Posted By Town Crier News Nigeria
Published By Fitness Network Communications
Lagos, Nigeria, October 28, 2022: In line with its upward growth trajectory, leading financial institution, Fidelity Bank Plc, has posted an impressive 34.7% growth in profits from N28.1bn at the end of Q3 2021 to N37.8bn for the 9M 2022.
This was made known in the Bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) on Friday, 28 October 2022.
According to the statement, Net Interest Margin improved to 6.2% from 4.7% in 2021FY, due to increased market yields while average funding cost remained unchanged YTD. Average yield on earning assets increased by 166bps to 11.7% while average funding cost stood at 4.3%, which resulted in 72.2% YoY increase in net interest income to N111.9bn.
Commenting on the results, Nneka Onyeali-Ikpe, MD/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 38.7% YoY to N241.9bn on account of 53.1% growth in interest and similar income to N210.4bn from N137.4bn in 9M 2021.
The increase in Interest Income was driven by improved yield on earnings assets and 16.3% YTD expansion in earnings base to N2,579.0bn.
Similarly, Total Deposits increased by 13.3% YTD to N2,294.7bn from N2,024.8bn in 2021FY, driven by double-digit growth in low-cost deposits.
Low-cost deposits increased by 24.2% YTD to N1,873.6bn and now represents 81.7% of total deposits from 74.5% in 2021FY.
FCY deposits increased by $432m (45.9% YTD) to $1.4bn and now accounts for 26.2% of total deposits from 19.7% 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 20.0% YTD to N1,989.3bn from N1,658.4bn in 2021FY with intervention fund facilities and the impact of naira devaluation accounting for 33.8% 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 41.3% and capital adequacy ratio (CAR) at 19.4% compared to the minimum requirement of 15.0%.
“We successfully redeemed our $400mn Reg S /144a Senior Unsecured 5 -yr 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.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 7.2 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 and received the Platinum and Service Ambassadors awards from the Development Bank of Nigeria (DBN) for its support of small businesses in the country.
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.