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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.
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Analysis of the results indicates that the 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.
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