Fidelity Bank Plc has reported a N277.37 Billion Profit and a 131.5 per cent growth in Profit Before Tax to N124.26 billion in its 2023 full-year Audited Financial Statements.
The bank released the financial statement to the Nigerian Exchange (NGX) on April 16.
Commenting on the Bank’s commendable performance, Dr. Nneka Onyeali-Ikpe, OON, Managing Director/CEO of Fidelity Bank Plc 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.”
Fidelity Bank grew Gross Earnings by 64.9 per cent YoY to N555.83 billion, driven by 81.6 per 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 per cent annual growth.
Profit before tax grew by 131.5 per cent to N124.3 billion from N53.7 billion in 2022FY, leading to an increase in Return on Average Equity (RoAE) of 26.5 per cent from 15.6 per cent in 2022FY.”
A review of the financial performance showed that the bank grew Net interest income by 81.6% to N277.4bn driven by a 55.5 per cent 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 per cent 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 per cent from 6.3 per cent in 2022FY.
Similarly, Total Customer Deposits crossed the N4tn mark as deposits grew by 55.6 per cent from N2.6 trillion in 2022FY. The increase was driven by 81.1 per cent 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 N3.1 trillion from N2.1 trillion in 2022FY.