Fidelity Bank Posts N37.8bn Profit, 34.7% Growth In 9M 2022

Leading financial institution, Fidelity Bank Plc, in line with its upward growth trajectory reported a 34.7 per cent growth in profits from N28.1 billion at the end of Q3 2021 to N37.8 billion for the nine months in 2022.
The bank made this known in the unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) on Friday, 28 October 2022.
The Net Interest Margin improved to 6.2 per cent from 4.7 per cent in 2021FY, due to increased market yields while average funding cost remained unchanged YTD.
Average yield on earning assets increased by 166bps to 11.7 percent while average funding cost stood at 4.3 percent, which resulted in 72.2 per cent YoY increase in net interest income to N111.9 billion.
Managing Director/CEO, Nneka Onyeali-Ikpe, said Fidelity Bank was happy to report sustained growth across key financial indices in its 9 months 2022 results.
“Gross Earnings increased by 38.7 per cent YoY to N241.9 billion on account of 53.1per 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 percent YTD to N2,294.7 billion from N2,024.8 billion in 2021FY, driven by double-digit growth in low-cost deposits. Low-cost deposits increased by 24.2 percent YTD to N1,873.6 billion and now represents 81.7 per cent of total deposits from 74.5 per cent in 2021FY.
“FCY deposits increased by $432 million (45.9 per cent YTD) to $1.4 billion and now accounts for 26.2per cent of total deposits from 19.7 per cent in 2021FY, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space.”
The statement also showed considerable growth in Net Loans and Advances by 20.0 per cent YTD to N1,989.3 billion from N1,658.4 billion 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 19.4p3er cent compared to the minimum requirement of 15.0 per cent.
“We successfully redeemed our $400 million Reg S /144a Senior Unsecured 5-year Notes on 17th October 2022. Noteholders received a total of $421mn covering the principal amount and the accrued 6 months coupon in line with the executed Trust Deeds”, the CEO noted.