In line with its upward growth trajectory, leading financial institution, Fidelity Bank Plc, has posted an impressive 120.1 per cent growth in Profit Before Tax from N17.9 billion at the end of Q1’23 to N39.5 billion for Q1’24.
This was made known in the bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) on Tuesday, April 30, 2024.
According to the statement, Gross Earnings increased by 89.9 per cent yoy to N192.1 billion from N101.1 billion in Q1’23.
The increase was led by a combination of interest income (90.7% yoy) and non-interest income (84.0% yoy).
Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, FX-related income, trade, banking services, and remittances, supported by increased customer transactions.
Commenting on the results, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc, stated: “We are pleased to report another quarter of strong financial performance driven by our strategic focus on customer-centricity, digital innovation and operational excellence. Despite the challenging macroeconomic environment, we remained resilient and agile, delivering double-digit growth on key income lines while advancing our business sustainability agenda.”
In the period under review, the bank grew Net interest income grew by 89.5 per cent yoy to N99.6 billion from N52.6 billion in Q1’23, driven by interest and similar income as the yield on financial instruments improved to 14.7 per cent from 10.1 per cent in Q1’23 (2023FY: 11.6%).
In line with the steady rise in interest rates through the year, average funding cost increased by 80bps ytd to 5.2 per cent. However, NIM came in at 8.8 per cent compared to 8.1 per cent in 2023FY, as increased yield on earning assets surpassed funding cost to 15.1 per cent from 13.3 per cent in Q1’23 (2023FY: 13.5%).
Similarly, Total Deposits increased by 17.2 per cent ytd to N4.7 trillion from N4.0 trillion in 2023FY, driven by double-digit growth across all deposit types (demand, savings and term). Net Loans and Advances increased by 21.2 per cent to N3.7 trillion from N3.1trillion in 2023FY.
“Beginning the year on this inspiring note reaffirms our strategy of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper. We are committed to our guidance as we build a more resilient business franchise with a well-diversified earnings base in 2024,” explained Onyeali-Ikpe.
