Babatunji Wusu –
Fidelity Bank’s PBT increased by 120.1% to N39.5 billion in the first quarter of 2024.Published 31 minutes ago on May 3, 2024.By Obinna Ezugwu.Fidelity Bank’s PBT increased by 120.1% to N39.5 billion in the first quarter of 2024.
Fidelity Bank Plc reported a laudable 120.1% increase in Profit Before Tax from N17.9 billion at the end of Q1 2023 to N39.5 billion in Q1 2024.
This was disclosed in the Bank’s unaudited financial accounts, which were issued on the Nigerian Exchange’s (NGX) issuer portal on Tuesday, April 30, 2024.
According to the announcement, gross earnings climbed by 89.9% year on year to N192.1bn from N101.1bn in Q1 2023. The growth was driven by a combination of interest income (90.7% year on year) and non-interest income (84.0%). Interest income growth was primarily driven by a higher yield environment and a strong earning asset base, whereas non-interest income growth was led by double-digit increases in account maintenance charges, FX-related income, trade, banking services, and remittances, which were supported by increased customer transactions.
Commenting on the results, Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank Plc, said, “We are pleased to report another quarter of solid financial performance driven by our strategic focus on customer-centricity, digital innovation, and operational excellence. Despite the adverse financial climate, we remained robust and adaptable, producing double-digit growth in key revenue lines while advancing our business sustainability strategy.”
During the period under study, the bank expanded. Net interest income increased by 89.5% year on year to N99.6 billion from N52.6 billion in Q1 2023, led by interest and similar income, as the yield on financial instruments improved to 14.7% from 10.1% in Q1 2023 (2023FY: 11.6%). In accordance with the continuous rise in interest rates this year, average funding costs increased by 80 basis points year on year to 5.2%. However, NIM was 8.8%, up from 8.1% in 2023FY, as increasing yield on earning assets surpassed funding costs to 15.1% from 13.3% in Q1 2023 (2023FY: 13.5%).
Similarly, double-digit growth in all deposit classes (demand, savings, and term) drove the 17.2% ytd increase in total deposits, which rose from N4.0tn in the 2023 fiscal year to N4.7tn. The Net Loans and Advances in 2023FY amounted to N3.7tn, a 21.2% increase from N3.1tn.
“Starting the year on such a positive note validates our approach of assisting people in developing, motivating companies to flourish, and enabling economies to flourish. Onyeali-Ikpe stated, “We are dedicated to following our guidance as we develop a more resilient business brand with a well-diversified earnings foundation in 2024.
Fidelity Bank, ranked as one of Nigeria’s top banks, is a full-service commercial bank with over 8.5 million customers served through its 251 business branches in Nigeria and the United Kingdom, as well as internet banking platforms.
