Leading financial institution, Fidelity Bank Plc has recorded 35.7% growth in Profit Before Tax for its 2021 financial year to close the year at N38.1bn according to the bank’s recently issued financial result.
Analysis of the results indicates that Fidelity bank grew Gross Earnings by 21.6% YoY (23.2% QoQ) to N250.8bn driven by a combination of 60.3% growth in non-interest revenue (NIR) and 15.2% increase in interest and similar income. The growth in NIR reflects the significant increase in customer transactions resulting in 84.9% growth in trade income, 48.1% in account maintenance charge, and 47.2% increase in digital banking income.
Commenting on the Bank’s impressive performance, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc noted, “We closed the financial year with strong double-digit growth in profit and across key balance-sheet lines, which reflects the disciplined execution of our strategy and capacity to deliver superior returns to shareholders. Profit before tax grew by 35.7% to N38.1bn from N28.1bn in 2020FY, which translates to an increase in RoAE to 12.5% from 10.5% in 2020FY.”
Other areas of the financial result recorded significant increases in the period under review with total interest and similar income increasing by N26.8bn. Similarly, Total Deposits increased by 19.2% to N2.025tr from N1.699tr in 2020FY, Local currency deposits grew by 16.0% and account for 80.3% of Total Deposits while foreign currency deposits increased by 33.9% and accounts for 19.7% of Total Deposits from 17.5% in 2020FY.
Detailing the contribution of the bank’s digital-led retail strategy to its financial performance, Onyeali-Ikpe stated, “Digital Banking gained further traction driven by new initiatives in our retail business and the enhancement of existing digital banking products. We now have 56.0% of our customers enrolled on the mobile/internet banking products and 90.0% of total customer-induced transactions done on digital platforms with digital banking business contributing 27.6% to net fee income.”
Despite headwinds occasioned by the Covid-19 pandemic, the Bank’s share price rose by 35% between January 2021and April 01, 2022, placing it among the most actively traded stocks on the Nigerian bourse floor. The performance of the Bank’s share price is a reflection of the high investor confidence in its strong fundamentals and leadership team.
“My team and I are committed to achieving the long-term strategic objectives of Fidelity Bank while we look forward to sustaining the current performance trend and delivering strong set of results for the 2022FY”, explained Onyeali-Ikpe.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 million customers serviced across its 250 business offices and digital banking channels. The bank was recently recognized as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BAFI Awards.