Nigerian Financial institution, Fidelity Bank Plc, has announced a Profit Before Tax (PBT) of N76.3 billion for the first half of 2023, representing an impressive 204.4% growth.
This announcement was made in the bank’s recently issued financial results, underlining its status as one of the country’s fastest-growing and well-managed financial institutions.
Fidelity Bank, operating as a full-fledged commercial bank in Nigeria, serves over 8 million customers through its 250 business offices and digital banking channels.
The bank has garnered several prestigious awards, including the “Best SME Bank Nigeria” at the 28th annual Euromoney Awards for Excellence 2023 and the “Best SME Bank Nigeria 2022” by the Global Banking & Finance Awards.
Fidelity Bank has also been recognized as the “Fastest Growing Bank” and the “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.
The financial results, published on the Nigerian Exchange Group (NGX) on September 1, 2023, revealed exceptional performance across all financial indicators.
Gross earnings surged by 59.6% to ₦247.1 billion compared to ₦154.8 billion in June 2022. Profit After Tax (PAT) reached ₦61.9 billion, marking a remarkable growth of 166.0% from ₦23.3 billion recorded in the same period, resulting in an Earnings per Share (EPS) of 194 kobo.
Fidelity Bank also demonstrated robust growth in its balance sheet, with Total Assets growing by 27.4% from ₦3.9 trillion in December 2022 to ₦5.1 trillion. The bank maintained a low non-performing loan (NPL) ratio of 3.24%, well within regulatory thresholds, and had adequate coverage of 111%. Return on Equity (ROE) and Return on Assets (ROA) closed at 34.9% and 2.8%, respectively.
In light of its strong performance in H1 2023, the bank’s board approved an interim dividend of 25 kobo per share. This marks the second consecutive year that Fidelity Bank has paid interim dividends, reaffirming its commitment to delivering sustainable value to shareholders.
Nneka Onyeali-Ikpe, the MD/CEO of Fidelity Bank Plc, commented on the bank’s impressive performance, saying, “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.”
Fidelity Bank’s outstanding H1 2023 results add to a series of recent accolades and achievements. The NGX reclassified the bank’s stock from a small-price stock to a medium-price stock in July 2023 due to its consistently impressive performance.
Additionally, the bank emerged as the company with the highest earnings per share on the NGX for the second consecutive year based on half-year financial figures.
To sustain this remarkable performance, the bank’s shareholders unanimously approved a capital-raising exercise via 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 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% 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.
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