Fidelity Bank’s remarkable 166% surge in profits stood resilient against challenging economic conditions


Fidelity Bank experienced an exceptional financial performance over the course of one year amidst challenging economic conditions in the country.

According to the bank’s financial reports, their profit after tax surged by an impressive 166.1 percent, reaching N62 billion in the first half of 2023 compared to N23.3 billion during the same period in 2022.

The bank achieved a remarkable 204 percent growth in profit before tax, rising to N76.3 billion from N25.1 billion, while net interest income also saw a substantial increase to N107.8 billion from N75.6 billion.

This net interest income growth of 42.6 percent was attributed to higher asset yields, which expanded by 57 basis points to 12.7 percent, as stated by the bank.

Fidelity Bank further reported that they successfully reduced their average funding cost by 10 basis points to 4.5 percent, thanks to an improved deposit mix, with low-cost funds accounting for 90.3 percent of total deposits, up from 83.6 percent in 2022.

Their gross earnings also witnessed substantial growth, surging to N247.1 billion from N154.84 billion, representing a remarkable 59.6 percent increase.

This growth was driven by a 39.4 percent rise in interest income and a significant 207.2 percent surge in non-interest income, according to the bank.

The increase in interest income was primarily due to a favorable interest rate environment and a 27.6 percent year-to-date expansion in the earning assets base.

Additionally, the bank attributed the growth in non-interest income to foreign currency gains and double-digit growth in key income lines, including trade (66.6 percent), digital income (53.6 percent), banking services (50.2 percent), and account maintenance (44.2 percent).

Total interest income reached N189.9 billion, up from N136.23 billion.

Other income also saw substantial growth, rising to N180.8 billion from N89.1 billion.

Furthermore, Fidelity Bank recently announced the completion of its 100 percent acquisition of Union Bank UK, a subsidiary of Union Bank Plc, as part of their international expansion strategy.

Operating expenses increased to N84.55 billion in the first half of 2023, up from N62.03 billion in the same period of 2022.

Fidelity Bank attributed this 36.3 percent increase to various factors, including AMCON, deposit insurance, staff costs, communication, and technology expenses, which collectively accounted for 72.1 percent of the absolute growth in operating expenses.

The bank’s total customer deposits grew by 23.2 percent year-to-date, reaching N3.2 trillion compared to N2.6 trillion in 2022.

This increase was driven by a 33.0 percent year-to-date growth in low-cost funds (demand, savings, and domiciliary), while tenured funds declined by 27.0 percent year-to-date, resulting in improved margins.

Net loans and advances also saw substantial growth, increasing by 25.1 percent year-to-date to N2.6 trillion in June from N2.1 trillion in the full year of 2022.

However, the non-performing loan ratio increased to 3.2 percent in the first half of 2023 from 2.9 percent in 2022, while the capital adequacy ratio stood at 16.1 percent, down from 18.1 percent the previous year.

Fidelity Bank attributed this compression in CAR to the recent Naira devaluation, which had an estimated negative impact of 250 to 300 basis points.

The bank expressed its commitment to monitoring and proactively managing evolving economic risks while fulfilling its commitments to customers and shareholders.

Fidelity Bank’s return on equity increased to 34.9 percent from 15.6 percent, and net interest margin grew to 7.2 percent, up from 6.3 percent.

Additionally, the bank declared an interim dividend of 25 kobo per share, marking a 150 percent increase compared to the 10 kobo declared in the full year of 2022.

Fidelity Bank, a full-fledged commercial bank, serves over eight million customers through its 250 business offices and various digital banking channels.

The bank’s strategic focus includes select niche corporate banking sectors and support for small and medium enterprises, with a successful digital-led retail banking strategy that has contributed to over 400 percent growth in savings deposits over the last seven years.


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