Fidelity announces N200.8bn pre-tax profit for period ending June 30, 2024

Fidelity announces N200.8bn pre-tax profit for period ending June 30, 2024

Fidelity Bank PLC has announced a pre-tax profit of N200.8 billion in its recently published financial statements for the period ending June 30, 2024.  

This represents a significant 163 percent year-over-year (YoY) increase from the same period in 2023, as gains from financial assets at fair value increased.

The bank also saw its net interest income surge by 202 percent YoY to N326.4 billion during the same period.

In addition, Fidelity has proposed an interim dividend of N0.85 per ordinary share of N0.50 to be paid to registered shareholders.

Fidelity Bank’s gross earnings surged by 107.6percent YoY to N512.8 billion, up from N247.1 billion in the same period last year.  

Interest expenses also climbed by 78.9percent YoY to N146.8 billion, but net interest income still grew remarkably, up 202.7percent YoY to N326.4 billion.

The bank’s fees and commissions income rose to N35 billion, a 45.1percent increase compared to N24.1 billion in the previous year, while net gains from financial assets at fair value reached N34.6 billion, up from N23.4 billion in 2023.

Despite higher costs, pre-tax profit reached N200.8 billion, reflecting a 163.1percent YoY increase. Profit after tax also rose significantly, up 157.8percent to N159.8 billion, with earnings per share (EPS) increasing to N4.9 from N1.9 in 2023.

The bank’s total assets grew by 27 percent YoY to N7.9 trillion, compared to N6.2 trillion in the same period last year.  

Total liabilities also rose by 25.9 percent YoY to N7.3 trillion.

In terms of liquidity, cash and cash equivalents grew significantly, up 95.9 percent to N801.7 billion, underscoring the bank’s strong liquidity and growth prospects.

Fidelity Bank’s cash flow from operating activities increased by 7.2 percent YoY to N1 trillion, while investing activities saw a net outflow of N617.2 billion due to substantial purchases of debt instruments.  Also, financing activities showed a net outflow of N13.7 million.  

However, the bank’s net increase in cash and cash equivalents was a robust N801.7 billion, reflecting strong liquidity.

Fidelity Bank proposed an interim dividend of N0.85 per ordinary share of N0.50.  It will be payable to shareholders whose names appear on the company’s register as of the close of business on October 17, 2024, and is subject to applicable withholding taxes.

This dividend announcement is expected to boost investor confidence and could lead to a rise in the bank’s share price.

According to the released financial statement, the bank is profitable and operationally healthy for the reported period.

NewsDirect
NewsDirect
Articles: 49781