Fidelity Bank Reports Impressive 204.4% Growth In Profit Before Tax For H1 2023, Declares Dividend
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Fidelity Bank Plc, one of Nigeria’s leading financial institutions, has announced stellar financial results for the first half of 2023, showcasing robust growth and a strong commitment to delivering value to shareholders.
The bank’s Profit Before Tax (PBT) for H1 2023 soared to an impressive N76.3 billion, marking a remarkable 204.4% increase compared to the same period in the previous year. This outstanding performance was revealed in the financial results published on the Nigerian Exchange Group (NGX) on September 1, 2023. The bank’s growth extended across all financial indices, solidifying its reputation as one of Nigeria’s fastest-growing and well-managed financial institutions.
Fidelity Bank’s Gross earnings for the period grew by an impressive 59.6% to ₦247.1 billion, up from ₦154.8 billion reported in June 2022. Profit After Tax (PAT) stood at ₦61.9 billion, reflecting a substantial growth of 166.0% compared to ₦23.3 billion in the corresponding period, translating to an Earnings per Share (EPS) of 194 kobo. The bank’s Net Loans & Advances also experienced significant growth, increasing by 25.1% from ₦2.1 trillion as of December 2022 to ₦2.6 trillion in June 2023, along with a corresponding 23.2% growth in Customer Deposits, which rose to ₦3.2 trillion from ₦2.6 trillion in December 2022.
Fidelity Bank’s balance sheet remained robust, boasting a 27.4% growth in Total Assets, reaching ₦5.1 trillion from ₦3.9 trillion in December 2022. The bank’s Non-Performing Loans (NPLs) remained well within regulatory thresholds at 3.24%, with adequate coverage of 111%. Return on Equity (ROE) and Return on Assets (ROA) closed at 34.9% and 2.8%, respectively.
As a testament to its strong performance, the bank’s board approved an interim dividend of 25 kobo per share, marking the second consecutive year of interim dividend payments. This decision underscores Fidelity Bank’s ability to provide sustainable value to its shareholders.
Nneka Onyeali-Ikpe, the Managing Director and CEO of Fidelity Bank Plc, expressed her satisfaction with the bank’s remarkable performance, stating, “We are pleased to report 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 in a challenging global economic environment.”
Fidelity Bank’s impressive H1 2023 results add to a series of recent achievements. In July 2023, the NGX reclassified the bank’s stock from a small-price stock to a medium-price stock due to its consistent outstanding performance. Additionally, the bank was recognized as the company with the highest earnings per share on the NGX for the second consecutive year.
To sustain this remarkable performance, the bank’s shareholders unanimously approved a capital raising exercise through a Public Offer and Rights Issue at an Extra-Ordinary General Meeting held on August 11, 2023.
“We will continue to monitor and proactively manage evolving risks in the economy while fulfilling our commitments to our customers and shareholders. The interim dividend of 25 kobo per share, a 150% increase compared to the 10 kobo interim dividend in 2022FY, attests to the value we place on the unwavering support from our shareholders,” stated Nneka Onyeali-Ikpe.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria, serving over 8 million customers through its 250 business offices and digital banking channels. The bank has received numerous accolades, including the “Best SME Bank Nigeria” at the 28th annual Euromoney Awards for Excellence 2023 and “Best SME Bank Nigeria 2022” by the Global Banking & Finance Awards. It has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.
