Fidelity Bank Plc, one of Nigeria’s leading financial institutions on Thursday released its 2022 Audited Financial Statements on the Nigerian bourse.
The results showed a 34.4per cent growth in Gross Earnings Year on Year to N337.1 billion, driven by 45.2 per cent growth in interest and similar income to N295.6 billion.
The increase in Interest Income was led by a combination of improved yield on earning assets and expansion in earnings base to N2.64 trillion. This led to a Profit Before Tax, PBT, of N53.7 billion, representing 112.9 per cent annual growth.
In her comments on the bank’s impressive performance, the Managing Director/Chief Executives Officer, MD/CEO, of Fidelity Bank Plc, Nneka Onyeali-Ikpe, said, “We are happy to report another year of impressive double-digit growth across key income and balance sheet lines.
“This validates our growth strategy and capacity to deliver superior returns to shareholders.”
The reports showed that Net Interest Income, NII, increased by 60.9 per cent year on year to N152.7 billion. The high yield environment had a positive impact on Net Interest Margin, NIM, which increased to 6.4 per cent from 4.7 per cent in 2021 financial year, while average funding cost inched up slightly to 4.6 per cent from 4.2 per cent.
Similarly, Total Deposits, TD, increased by 27.4 per cent to N2.58 trillion from N2.02 trillion in 2021, in line with the bank’s guidance for 2022 financial year, published in its investor relations presentation.
The increase was driven by 43.1 per cent growth in low-cost deposits – Demand, Savings, Domiciliary – which resulted in improved margins.
Speaking on the contribution of Foreign Currency, FCY, deposits to its financial performance, Onyeali-Ikpe noted, “FCY deposits increased by $597 million, 63.4 YoY, to $1.5 billion and now accounts for 27.5 per cent of total deposits from 19.7 per cent in 2021, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space.”
Historically, Fidelity Bank has maintained high asset quality and a healthy balance sheet with its Regulatory Ratios well above the minimum regulatory thresholds.
The bank reported a Liquidity Ratio of 39.6 per cent and Capital Adequacy Ratio, CAR, at 18.1 per cent compared to the minimum regulatory requirement of 30.0 and 15.0 per cents respectively.
Its Non-Performing Loans, NPL, ratio remained unchanged at 2.9 per cent for the year.
The MD/CEO further explained, “In 2023, we are committed to our strategic plan of expanding our service touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clientele.”
Following on the heels of its impressive performance, the bank has declared a final dividend of 40 kobo per share which brings its total dividend for the 2022 financial year to 50 kobo per share.
A full-fledged customer commercial bank, operating in Nigeria with over 7.5 million customers serviced across its 250 business offices and digital banking channels, Fidelity Bank was recognized as the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards.
The bank has also won awards as the ‘Fastest Growing Bank’ and ‘MSME and Entrepreneurship Financing Bank of the Year’ at the 2021 BusinessDay Banks and Other Financial Institutions, BAFI, Awards.
