Fidelity Bank Grows Gross Earnings By 34.4% In 2022

Fidelity Bank Grows Gross Earnings By 34.4% In 2022

The bank declares total dividend of 50K per share
11 months ago
2 mins read

Fidelity Bank Plc has recorded a 34.4 per cent growth in gross earnings to N337.1 billion in the 2022 financial year.

This was driven by 45.2 per cent growth in interest and similar income to N295.6 billion.

This was revealed in the banks 2022 Audited Financial Statements released on the Nigerian bourse on Thursday.

The increase in Interest Income was led by a combination of improved yield on earning assets and 19.1 per cent YoY expansion in earnings base to N2.64 trillion. This led to a Profit Before Tax of N53.7 billion representing 112.9 per cent annual growth.

Commenting on the Bank’s impressive performance, Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank Plc said, “We are happy to report another year of impressive double-digit growth across key income and balance sheet lines. This validates our growth strategy and capacity to deliver superior returns to shareholders.”

READ ALSO: Fidelity Bank Sells N13.97 billion Controlling Shares To 2 Investors

Further review showed that Net Interest Income increased by 60.9 per cent YoY to N152.7 billion. The high yield environment had a positive impact on Net Interest Margin, which increased to 6.4 per cent from 4.7 per cent in 2021FY while average funding cost inched up slightly to 4.6 per cent from 4.2 per cent. Similarly, Total Deposits increased by 27.4 per cent to N2.58 trillion from N2.02trn in 2021FY, in line with the Bank’s guidance for 2022FY published in its investor relations presentation. The increase was driven by 43.1 per cent growth in low-cost deposits (Demand | Savings | Domiciliary), which resulted in improved margins.

Speaking on the contribution of Foreign Currency (FCY) deposits to its financial performance, Onyeali-Ikpe noted, “FCY deposits increased by $597million (63.4 per cent YoY) to $1.5 billion and now accounts for 27.5 per 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.”

Historically, Fidelity Bank has maintained high asset quality and a healthy balance sheet with its Regulatory Ratios well above the minimum regulatory thresholds. It reported a Liquidity Ratio of 39.6 per cent and Capital Adequacy Ratio (CAR) at 18.1 per cent compared to the minimum regulatory requirement of 30.0 per cent and 15.0 per cent respectively. Its Non-Performing Loans (NPL) ratio remained unchanged at 2.9 per cent for the year.

“In 2023, we are committed to our strategic plan of expanding our service touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clientele”, explained Onyeali-Ikpe.

On the back of the impressive performance, the bank has declared a final dividend of 40 kobo per share which brings its total dividend for FY 2022 to 50 kobo per share.

Fidelity Bank is a full-fledged customer commercial bank operating in Nigeria with over 7.5 million customers serviced across its 250 business offices and digital banking channels. The bank was recognized as the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME  and Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.


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Fidelity Bank supports Temile Development Company to boost Nigeria’s Gas Revenues In what has been termed a significant milestone in the advancement of Nigeria's domestic gas industry and the generation of gas revenues, Temile Development Company Ltd -a key indigenous player in the oil and gas industry- recently commissioned a 23,000 cubic meters ultramodern Liquefied Petroleum Gas (LPG) Carrier. Named ‘Alfred Temile 10’, the vessel was part-financed by leading Nigerian bank -Fidelity Bank Plc- and was commissioned at the Hyundai Mipo Dockyard in Ulsan, South Korea. Dignitaries at the event included the Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd (NNPC), Mallam Mele Kyari,OFR; Managing Director/Chief Executive Officer, Fidelity Bank Plc, Dr Nneka Onyeali-Ikpe,OON; Minister of State for Petroleum Resources (Gas), Hon. Ekperikpe Luke Ekpo; the Charge D’Affairs Ad Interim of the Embassy of Nigeria in South Korea, Ambassador Ferdinand Nwonye; Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe; amongst others. Commending the company on the laudable development, Mallam Mele Kyari said, “I want to congratulate Mr. Alfred for the great feat you have achieved on behalf of our country and we understand that today clean energy is everything because the whole world is transiting to cleaner fuel. In our country, biomass is the major source of energy, and I know that the efforts we are making collectively and with this effort by Temile Group will enhance that ability to produce cleaner energy in our country.” On her own part, Dr Nneka Onyeali-Ikpe,OON said, “This commissioning is a landmark achievement for Nigeria as the vessel would further support the nation’s drive to utilize cleaner energy sources especially as the world transitions to environmental-friendly energy options. Fidelity Bank is delighted to facilitate this transaction and we congratulate our amiable customer -Mr. Alfred Temile- as well as the good people of Nigeria on this feat.” It was noted that this was the second of its kind being part-financed by the Bank and further underscores its support for the industry. An elated Mr. Alfred Temile, the CEO of Temile Development Company, expressed heartfelt appreciation for the collaboration and strong support received from NNPC Ltd and other stakeholders throughout the project's journey. The vessel will bolster the local participation of indigenous maritime players, improve the logistics of LPG supply and increase the availability of LPG for the Nigerian last-mile users. This will contribute to the growth of Nigeria’s domestic gas industry while demonstrating the dedication and increasing capabilities of indigenous Nigerian companies in the oil and gas sector. It will be recalled that Fidelity Bank Plc also part-financed the development of the recently launched Pinnacle Oil and Gas Terminal in Lagos as part of efforts to improve energy security in the country. Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels. The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.

Fidelity Bank Supports Temile Development Company To Boost Nigeria’s Gas Revenues

Temile Development Company Ltd, a key indigenous player