Leading financial institution Fidelity Bank Plc has recorded an impressive 204.4 percent growth in profit before tax for the first half of 2023 to N76.3 billion, according to the bank’s recently issued financial results.
A review of the results published on the Nigerian Exchange Group (NGX) on Friday, September 1, 2023, showed a positive performance across all financial indices, reaffirming the bank’s position as one of the fastest-growing and best-managed financial institutions in Nigeria.
Gross earnings for the period grew by 59.6 percent to 247.1 billion from 154.8 billion reported in June 2022. Profit after tax stood at 61.9 billion, representing a growth of 166 percent over the 23.3 billion recorded in the corresponding period. This translates to earnings per share of 194 kobo.
The bank’s net loans and advances grew by 25.1 percent from 2.1 trillion recorded as of December 2022 to 2.6 trillion in June 2023, with corresponding growth in customer deposits, which increased by 23.2 percent to 3.2 trillion from 2.6 trillion in December 2022.
The bank’s balance sheet remained strong, with a 27.4 percent growth in total assets from 3.9 trillion in December 2022 to 5.1 trillion. The bank’s non-performing loans remained low and within the regulatory threshold at 3.24 percent, with adequate coverage of 111 percent.
Return on equity (ROE) and return on assets (ROA) closed at 34.9 percent and 2.8 percent, respectively. On the back of the strong H1 2023 performance, the board of the bank approved an interim dividend of $25 per share, making it the second consecutive year the bank would be paying interim dividends and another demonstration of its capacity to provide shareholders with sustainable value.
Commenting on the bank’s laudable performance, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc, noted, “We are pleased to report on another period of quality growth across all financial and non-financial indices.
Our performance during the first half of the year reflects the resilience of our bank and the fundamental strength of our business to deliver long-term sustainable value at a time that has been characterized by global economic headwinds.
As a bank, we remain committed to our goal of helping individuals grow, inspiring businesses to thrive and empowering economies to prosper.
The bank’s impressive H1 2023 results join a string of recent achievements by Fidelity Bank. It will be recalled that the bank’s stock was reclassified from small-price stock to medium-price stock by the NGX in July 2023 on the back of a consistent and impressive performance.
Similarly, the bank recently emerged as the company with the highest earnings per share on the NGX based on half-year financial figures for the second year running.
To sustain this sterling performance, the bank’s shareholders, at an extraordinary general meeting held on August 11, 2023, unanimously approved a capital raising exercise via a public offer and rights issue.
“We will continue to monitor and proactively manage the evolving risks in the economy while ensuring our commitments to our customers and shareholders are fulfilled.
“The interim dividend of 25 kobo per share, a 150 percent increase compared to the 10 kobo interim dividend in the 2022 FY, attests to the value we place on the unwavering support from our shareholders”, stated Onyeali-Ikpe.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria, with over 8 million customers served across its 250 business offices and digital banking channels.
The bank was recently recognized as the Best SME Bank Nigeria at the 28th annual Euromoney Awards for Excellence 2023 and the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards.
The bank has also won awards for Fastest Growing Bank” and “MSME and Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.
(Edited by Oludare Mayowa; firstname.lastname@example.org; Newsroom: +234 8033 964 138)