Nigerian lender, Fidelity Bank, has said it posted a 204.4 percent growth in Profit Before Tax (PBT) in half year 2023 (H1 2023).
According to the report published by the Nigerian Exchange Group (NGX), the PBT in H1 2023 to N76.3 billion.
The financials also showed a robust performance across all financial indices, reaffirming the Fidelity Bank’s position as one of the fastest growing and well-managed financial institutions in Nigeria.
According to the report, gross earnings for the period grew by 59.6 per cent to N247.1 billion from N154.8 billion reported in June 2022. Profit After Tax, PAT stood at N61.9 billion representing a growth of 166 per cent over N23.3 billion recorded in the corresponding period. This translates to Earnings per Share of 194 kobo.
The Bank’s Net Loans & Advances grew by 25.1 per cent from N2.1 trillion recorded as of December 2022 to N2.6 trillion in June 2023 with corresponding growth in Customer Deposits which increased by 23.2 per cent to N3.2 trillion from N2.6 trillion in December 2022.
The Bank’s balance sheet remained strong with a 27.4 per cent growth in Total Assets from N3.9 trillion in December 2022 to N5.1trillion. The Bank’s non-performing loans remained low and within regulatory threshold at 3.24 per cent with adequate coverage of 111 per cent. Return on Equity (ROE) and Return on Assets (ROA) closed at 34.9 per cent and 2.8 per cent respectively.
On the back of the strong H1’23 performance, the board of the bank approved an interim dividend of 25 kobo per share making it the second consecutive year the bank would be paying interim dividends and another demonstration of its capacity to provide shareholders with sustainable value.
Commenting on the Bank’s performance, Nneka Onyeali-Ikpe, Managing Director/Chief Executive Office, Fidelity Bank Plc noted, “We are pleased to report on another period of quality growth across all financial and non-financial indices. Our performance during the first half of the year reflects the resilience of our bank and the fundamental strength of our business to deliver long-term sustainable value at a time that has been characterized by global economic headwinds. As a bank, we remain committed to our goal of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper.
“We will continue to monitor and proactively manage the evolving risks in the economy while ensuring our commitments to our customers and shareholders are fulfilled. The interim dividend of 25 kobo per share, a 150 per cent increase compared to the 10 kobo interim dividend in 2022FY, attests to the value we place on the unwavering support from our shareholders,” stated Onyeali-Ikpe.
The bank’s results in H1’23 comes to join a string of recent achievements by Fidelity Bank. It would be recalled that the Bank’s stock was reclassified from small-price stock to medium-price stock by the NGX in July 2023 on the back of a consistent impressive performance.
Similarly, the bank recently emerged as the company with the highest earnings per share on the NGX based on half year financial figures for the second year running.
Inspired by the stellar performance, shareholders of the Bank, at an Extraordinary General Meeting (EGM) held virtually last month unanimously approved a capital raising exercise via a Public Offer for up to 10 billion Ordinary Shares and Rights Issue of up to 3.2 billion Ordinary Shares representing one new share for every 10 shares held to new and existing shareholders respectively.
Addressing shareholders at the meeting, which had the representatives of various regulators in attendance, including the Central Bank of Nigeria, Nigeria Exchange Group and Securities and Exchange Commission, Chairman of Fidelity Bank Plc, Mustafa Chike-Obi, said the Bank is on a solid growth trajectory and requires additional capital for growth in profitability, domestic and international expansion and to enhance its digital capabilities.
“In terms of our financial performance, we are beginning to see the result of uncompromising commitment to the disciplined execution of our strategy and recorded double-digit growth on all major indices in 2022. Indeed, our performance in 2022 marked a significant milestone in the history of your company because, for the first time in 35 years of operation, we crossed the N50 billion mark in Pre-Tax Profits.
The resolutions proposed for approval at this meeting aimed to ensure that your company can take advantage of emerging business opportunities and secure long-term profitability and competitive advantage while ensuring increased shareholder value,” explained Chike-Obi.
