Fidelity Bank Plc, a leading financial institution, has demonstrated a robust upward trajectory with an impressive 120.1% surge in Profit Before Tax (PBT) from N17.9 billion in Q1 2023 to N39.5 billion in Q1 2024. The bank unveiled this remarkable growth in its unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) on Tuesday, April 30, 2024.
The financial report highlighted a substantial increase in Gross Earnings by 89.9% year-on-year to N192.1 billion from N101.1 billion in Q1 2023. This surge was propelled by a combination of interest income, which soared by 90.7% year-on-year, and non-interest income, which grew by 84.0% year-on-year. The growth in interest income was attributed to a higher yield environment and a robust earning assets base, while the increase in non-interest income was driven by double-digit growth in various revenue streams such as account maintenance charges, FX-related income, trade, banking services, and remittances, bolstered by heightened customer transactions.
Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank Plc, expressed satisfaction with the bank’s financial performance, attributing it to strategic focus on customer-centricity, digital innovation, and operational excellence. She emphasized the bank’s resilience and agility in navigating the challenging macroeconomic environment, delivering double-digit growth on key income lines while advancing its business sustainability agenda.
During the period under review, Net interest income surged by 89.5% year-on-year to N99.6 billion from N52.6 billion in Q1 2023, driven by interest and similar income as the yield on financial instruments improved. Despite a steady rise in interest rates, the Net Interest Margin (NIM) stood at 8.8%, compared to 8.1% in 2023FY, indicating a favorable balance between increased yield on earning assets and funding cost.
Total Deposits witnessed a 17.2% year-to-date increase to N4.7 trillion from N4.0 trillion in 2023FY, fueled by double-digit growth across all deposit types. Net Loans and Advances also grew by 21.2% to N3.7 trillion from N3.1 trillion in 2023FY.
Onyeali-Ikpe reaffirmed the bank’s commitment to its growth strategy and guiding principles, aiming to build a more resilient business franchise with a well-diversified earnings base in 2024.
Fidelity Bank, acclaimed as one of the best banks in Nigeria, boasts over 8.5 million customers served across 251 business offices in Nigeria and the United Kingdom, along with digital banking channels. The bank has received numerous local and international accolades, solidifying its position as a leading financial institution committed to excellence and innovation in service delivery.