Fidelity Bank reports 31.4% increase in profit to N28.1bn

Fidelity Bank Plc released its nine months results for the period ended September 30, 2021 at the Nigerian Stock Exchange (NGX) with profit before tax gaining 31.4 per cent to N28.1 billion from N21.3 billion in the first nine months of 2020.

Gross earnings grew by 12.5 per cent to N174.4 billion from N155.0 billion in the same period in 2020

In other indices, total assets grew by 15.4 per cent to N3.18 trillion from N2.76 trillion in the same period last year.

Total deposits, a measure of customer confidence, increased by 16.1 percent YTD to N1.97 trillion from N1.69 trillion in 2020FY, driven by increased deposit mobilization across all deposits types.

Commenting on the impressive performance, Fidelity Bank’s CEO, Mrs Nneka Onyeali-Ikpe said, “We were able to sustain our performance trend since the start of 2021 with an impressive double-digit growth in profit driven by 69.9 per cent increase in net fee income which compensated for the decline in net interest income as average yield on liquid assets remain low.”

She noted that digital banking has continued to gain traction as the bank now has 56.1 per cent of its customers enrolled on its digital banking platform from 52.8 per cent in the 2020 financial year.

While stating that the bank had recorded a 125 per cent year-on-year (YoY) increase in total NIP transaction, she stated that 24.9 per cent of fee-based income currently comes from digital banking.

“Other regulatory ratios remain well above the minimum requirement: Capital Adequacy Ratio (CAR) at 18.8 per cent from 18.2 per cent in 2020FY while liquidity ratio came in at 34.5 per cent, well above the regulatory threshold of 30.0 per cent,” she noted.

Fidelity Bank recently completed a highly successful Eurobond offering, raising $400 million from the international capital markets through a five-year tenor Eurobond. The offering achieved a 7.625 per cent coupon p.a. and recorded a 1.8x over-subscribed orderbook which peaked at over $700 million.

“The pricing of the Senior Unsecured Notes, underscores the formidable confidence of a diversified range of global and local investors in Fidelity Bank’s growth aspirations and the well-experienced management team,”  she explained.