Fidelity Bank Grows Pre-tax Profit by 34.7% to N37.8bn

Fidelity Bank Plc’s pre-tax profit grew by 34.7 per cent to N37.8 billion in its nine months financial results for the period ended September 30, 2022.

The bank’s results released on the Nigerian Exchange (NGX) showed that profit before tax grew from N28.1 billion at the end of Q3, 2021 to N37.8 billion under the period review.

According to the results, net interest margin improved to 6.2 per cent from 4.7 per cent in 2021 full year, due to increased market yields while average funding cost remained unchanged year-to-date (YTD).

Average yield on earning assets increased by 166 basis points (bps) to 11.7 per cent while average funding cost stood at 4.3 per cent, which resulted in 72.2 per cent YoY increase in net interest income to N111.9 billion.

Speaking on the results, MD/CEO, Fidelity Bank, Nneka Onyeali-Ikpe stated that, “we are happy to report sustained growth across key financial indices in our nine months 2022 results. Gross Earnings increased by 38.7 per cent YoY to N241.9 billion on account of 53.1 per cent growth in interest and similar income to N210.4 billion from N137.4 billion in nine months, 2021. The increase in interest income was driven by improved yield on earnings assets and 16.3 per cent YTD expansion in earnings base to N2.579 trillion.

“Similarly, total deposits increased by 13.3 per cent YTD to N2.295 trillion from N2.025 trillion in 2021 full year, driven by double-digit growth in low-cost deposits. foreign currency (FCY) deposits increased by $432 million to $1.4 billion and now accounts for 26.2 per cent of total deposits from 19.7 per cent in 2021 full year, 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 per cent YTD to N1.989 trillion from N1.658 trillion in 2021 full year with intervention fund facilities and the impact of naira devaluation accounting for 33.8 per cent of the absolute YTD growth in risk assets book.