Fidelity Bank grows profits by 34.7% to N37.8bn in Q3 2022
By Idris Bakare
In line with its upward growth trajectory, Fidelity Bank Plc, has shown an impressive result of 34.7 per cent growth in profits from N28.1bn at the end of Q3 2021 to N37.8bn for the Q3 2022.
This was made known in the Bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) during the weekend.
According to the statement, Net Interest Margin improved to 6.2 per cent from 4.7 per cent in 2021 FY, due to increased market yields while average funding cost remained unchanged YTD.
Average yield on earning assets increased by 166bps to 11.7 per cent while average funding cost stood at 4.3 per cent, which resulted in 72.2 per cent YoY increase in net interest income to N111.9 billion.
Commenting on the results, Managing Director, Fidelity Bank Plc, Nneka Onyeali-Ikpe, stated that “We are happy to report sustained growth across key financial indices in our nine months 2022 results.”
Gross Earnings increased by 38.7 per cent YoY to N241.9bn on account of 53.1 per cent growth in interest and similar income to N210.4 billion from N137.4 billion in 9M 2021.
The increase in Interest Income was driven by improved yield on earnings assets and 16.3 per cent YTD expansion in earnings base to N2,579.0 billion.
Similarly, Total Deposits increased by 13.3 per cent YTD to N2,294.7billion from N2,024.8bn in 2021FY, driven by double-digit growth in low-cost deposits. Low-cost deposits increased by 24.2 per cent YTD to N1,873.6 billion and now represents 81.7 per cent of total deposits from 74.5 per cent in 2021 FY.
FCY deposits increased by $432 million (45.9 per cent YTD) to $1.4 billion and now accounts for 26.2 per cent of total deposits from 19.7 per cent in 2021 FY, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space.
The statement of account also showed considerable growth in Net Loans and Advances by 20.0 per t YTD to N1,989.3 billion from N1,658.4billion in 2021FY with intervention fund facilities and the impact of Naira devaluation accounting for 33.8 per cent of the absolute YTD growth in risk assets book.
The Bank was able to keep other regulatory ratios above the required thresholds maintaining its liquidity ratio at 41.3 per cent and Capital Adequacy Ratio (CAR) at 19.4 per cent compared to the minimum requirement of 15.0 per cent.
“We successfully redeemed our $400mn Reg S /144a Senior Unsecured 5 -yr Notes on 17th October 2022. Noteholders received a total of $421mn covering the principal amount and the accrued six months coupon in line with the executed Trust Deeds. We look forward to sustaining the momentum in Q4 towards achieving our set targets for 2022 Financial Year,” explained Onyeali-Ikpe.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 7.2 million customers serviced across its 250 business offices and digital banking channels.
The bank was recently recognised as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards and received the Platinum and Service Ambassadors awards from the Development Bank of Nigeria (DBN) for its support of small businesses in the country.
The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.
