Nneka Onyeali-Ikpe, managing director/CEO, Fidelity Bank Plc
Onome Amuge
The first quarter 2024 numbers have come in for Fidelity Bank Plc, and they show the bank continuing its upward climb as profit before taxation (PBT) soared 120.1 percent to N39.5 billion from the N17.9 billion recorded for the same period in 2023.
The positive performance is contained in the bank’s unaudited financial statements recently released on the Nigerian Exchange (NGX) issuer portal, giving the market a glimpse of its robust financial position.
Digging deeper into the numbers, the statement revealed a 89.9 percent year-on-year jump in gross earnings, from N101.1 billion in Q1 2023 to N192.1 billion in Q1 2024. The stellar growth was fueled by a harmonious blend of interest income (up 90.7% year-on-year) and non-interest income (up 84.0% year-on-year).
According to the financial institution, the upward trajectory in interest income was sparked by a fortuitous combination of a more profitable yield environment and a robust earning assets foundation. On the other hand, the surge in non-interest income was largely propelled by double-digit leaps in account maintenance charges, income related to foreign exchange, trade, banking services, and remittances, boosted by an uptick in customer transactions.
During the period under review, the bank’s net interest income appreciated to N99.6 billion, a 89.5 percent growth from N52.6 billion in Q1 2023. The yield on financial instruments was the star of the show, jumping to 14.7 percent from 10.1 percent in Q1 2023, powering the surge in interest and similar income.
As the interest rates tide continued its inevitable rise, the bank’s average funding cost likewise increased, swelling by 80 basis points (bps) year-to-date to 5.2 percent. However, despite this upward pressure, the bank’s Net Interest Margin (NIM) held strong, coming in at 8.8 percent, up from 8.1 percent the previous year. The increased yield on earning assets worked its magic, outpacing the mounting funding costs and pushing the bank’s margins to 15.1 percent in Q1 2024, compared to 13.3 percent in the corresponding quarter of 2023.
In perfect harmony with the bank’s upward trajectory, total deposits expanded by 17.2 percent year-to-date to N4.7 trillion, outpacing the N4.0 trillion in 2023 FY. The robust growth was fueled by double-digit surges in all deposit types — demand, savings, and term deposits, a testament to the bank’s ability to attract and retain deposits across various categories.
Nneka Onyeali-Ikpe, managing director and chief executive officer of Fidelity Bank Plc, shared her satisfaction with the bank’s impressive results for the quarter, attributing the robust performance to the bank’s relentless pursuit of customer-centricity, digital innovation, and operational excellence.
Despite the uncertain economic landscape, Onyeali-Ikpe highlighted the bank’s enduring spirit, underscoring its ability to navigate the challenges with agility and resilience, resulting in double-digit growth across key income lines.
“Beginning the year on this inspiring note reaffirms our strategy of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper. We are committed to our guidance as we build a more resilient business franchise with a well-diversified earnings base in 2024,” she stated.
