. Declares 60kobo/share final dividend
Fidelity Bank Plc has reported a 131.5% growth to N 124,26 billion in pre-tax profit in its full year (FY) 2023 Audited Financial Statements.
In its filing to the Nigerian Exchange (NGX), the bank announced that Gross Earnings grew by 64.9% year-on-year (YoY) to N555.83 billion, driven by 81.6% 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% annual growth.
Commenting on the Bank’s commendable performance, Dr. Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank, 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.
Profit before tax grew by 131.5% to N124.3billion from N53.7billion in 2022FY, leading to an increase in Return on Average Equity (RoAE) of 26.5% from 15.6% in 2022FY.”
A review of the financial performance showed that the bank grew Net interest income by 81.6% to N277.4billion driven by a 55.5% 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% due to increased low-cost funds that grew from 83.6% in 2022FY to 97.4% in 2023. The combination of higher asset yield and lower funding cost led to an increase in Net Interest Margin (NIM) of 8.1% from 6.3% in 2022FY.
We recognize the changing dynamics in the Nigerian banking space and the need to monitor and proactively manage evolving risks.
Similarly, Total Customer Deposits crossed the N4trillion mark as deposits grew by 55.6% from N2.6trillion in 2022FY. The increase was driven by 81.1% 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 N3.1trillion from N2.1trillion in 2022FY.
Despite the growth in its loan portfolio, Regulatory Ratios were maintained well above the required thresholds, with liquidity ratio at 45.3% from 39.6% in 2022FY and capital adequacy ratio (CAR) at 16.2% compared to the minimum requirement of 15.0%.
“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.
Fidelity Bank has consistently paid dividend since 2006. With the proposed final dividend of 60 kobo per share, Fidelity Bank would be paying investors a total dividend of 85 kobo per share for the reporting period, a 70.0% increase compared to the 50 kobo per share paid to its shareholders in the previous year.
