Fidelity Bank’s Profit Surges by 131.5%, Announces Final Dividend of 60k Per Share

Fidelity Bank Plc, a leading financial institution in Nigeria, has released its 2023 full-year Audited Financial Statements, revealing a remarkable 131.5% growth in Profit Before Tax to N124.26 billion.

The results, disclosed to the Nigerian Exchange (NGX) recently, show that the bank achieved a 64.9% year-on-year increase in Gross Earnings to N555.83 billion.

This growth was primarily driven by a substantial 81.6% rise in Net interest income, which surged from N152.7 billion to N277.37 billion.

As a result, the bank recorded a Profit After Tax of N99.45 billion, marking a significant 112.9% annual growth.

Dr. Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank Plc, commented on the bank’s impressive performance, stating, “We closed the financial year with strong double-digit growth across key income and balance-sheet lines.

“Our performance in 2023 demonstrates our ability to deliver superior returns to shareholders despite the challenges in our operating environment.”

According to the statement, Profit Before Tax soared by 131.5% to N124.3 billion from N53.7 billion in 2022FY, resulting in an increase in Return on Average Equity (RoAE) to 26.5% from 15.6% in 2022FY.

A review of the financial performance revealed that the bank grew Net interest income by 81.6% to N277.4 billion, driven by a 55.5% increase in interest income. This reflected a consistent rise in asset yield throughout the year.

Total Customer Deposits surpassed the N4 trillion mark, with deposits growing by 55.6% from N2.6 trillion in 2022FY. The increase was fueled by an 81.1% growth in low-cost funds.

Despite the challenging operating environment, Fidelity Bank increased Net Loans & Advances to N3.1 trillion from N2.1 trillion in 2022FY, while maintaining Regulatory Ratios well above the required thresholds.

“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, consistently paying dividends since 2006, will be paying investors a total dividend of 85 kobo per share for the reporting period, a 70.0% increase compared to the previous year.

Renowned as one of the best banks in Nigeria, Fidelity Bank serves over 8.3 million customers through its 251 business offices in Nigeria and the United Kingdom, as well as digital banking channels.

The bank has received numerous local and international awards, including Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, Best Payment Solution Provider Nigeria 2023, and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards.

Fidelity Bank was also honored as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023 and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.

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