Fidelity Bank Plc, has reported a 131.5 per cent growth in Profit Before Tax to N124.26 billion from N53.7 billion reported in 2022 as it released its 2023 full year Audited Financial Statements.
Commenting on the Bank’s commendable performance, MD/CEO, Fidelity Bank, Dr. Nneka Onyeali-Ikpe, in a statement said “We closed the financial year with strong double-digit growth across key income and balance-sheet lines.
“Our performance in 2023 is an attestation of our capacity to deliver superior returns to shareholders despite the difficulties in our operating environment.
According to the results, which was issued to the Nigerian Exchange Limited (NGX), the bank grew Gross Earnings by 64.9per cent YoY to N555.83 billion, driven by 81.6per cent growth in Net interest income which increased from N152.7billion to N277.37 billion. This led to a Profit After Tax of N99.45 billion representing a 112.9 percent annual growth from N46.72 billion in 2022.
“Profit before tax grew by 131.5per cent to N124.3billion from N53.7billion in 2022FY, leading to an increase in Return on Average Equity (RoAE) of 26.5 percent from 15.6per cent in 2022FY.”
A review of the financial performance showed that the bank grew Net interest income by 81.6 per cent to N277.4 billion driven by a 55.5 percent increase in interest income, thus reflecting a steady rise in asset yield throughout the year. The average funding cost dropped by 20bps to 4.4 percent due to increased low-cost funds that grew from 83.6 per cent in 2022FY to 97.4 per cent in 2023.
“The combination of higher asset yield and lower funding cost led to an increase in Net Interest Margin (NIM) of 8.1 percent from 6.3 percent in 2022FY.
Similarly, Total Customer Deposits crossed the N4tn mark as deposits grew by 55.6 cent from N2.6trilliion in 2022FY. The increase was driven by 81.1per percent growth in low-cost funds.
Despite the challenging operating environment, the bank reaffirmed its devotion to helping individuals grow, inspiring businesses to thrive and empowering economies to prosper by increasing Net Loans & Advances to N3.1trillon from N2.1trilliion in 2022FY.
Despite the growth in its loan portfolio, Regulatory Ratios were maintained well above the required thresholds, with liquidity ratio at 45.3 percent from 39.6 percent in 2022FY and capital adequacy ratio (CAR) at 16.2 percent compared to the minimum requirement of 15 percent.
“We recognize the changing dynamics in the Nigerian banking space and the need to monitor and proactively manage evolving risks. The proposed final dividend of 60 kobo per share reflects our commitment to strong value creation and returns to our shareholders”, explained Onyeali-Ikpe.
Source: ThisDay
