Fidelity Bank Grows Pre-tax Profit By 131.5% In 2023

Fidelity Bank Plc, has posted a 131.5 per cent growth in profit before tax to N124. 26 billion for the year ended December 31, 2023.

 

 

Also, the Bank proposed a final dividend payout of 60 kobo per share to shareholders for the 2023 financial year. This is in addition to the 25 kobo interim dividend paid, making a total dividend of 85 kobo per share for the reporting period, a 70.0 per cent increase compared to the 50 kobo per share paid to its shareholders in the previous year.

The audited results, which was issued to the Nigerian Exchange (NGX), showed that the Bank’s gross earnings grew by 64.9 per cent YoY to N555.83 billion, driven by 81.6 per cent growth in net interest income which increased from N152.7 billion to N277.37 billion. This led to a profit after tax of N99.45 billion representing a 112.9 per cent annual growth.

 

 

Speaking on the Bank’s performance, MD/CEO of Fidelity Bank, Dr. Nneka Onyeali-Ikpe, 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.”

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 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 2022 full year 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 2022 full year.

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