Fidelity Bank Plc reported profit growth of 34.7% to N37.8 billion for the third quarter (Q3) period that ended September 30, 2022.
The impressive report in line with the bank’s upward growth trajectory was made public on Friday, October 28, 2022, in its unaudited financial statements released to the investing public at the Nigerian Exchange Limited (NGX).
According to the release, net interest margin improved to 6.2% from 4.7% in fiscal year 2021 (FY) due to higher market yields, while the average financing cost remained unchanged since the beginning of the year (YtD). Average return on earning assets increased 166 basis points to 11.7%, while average funding cost was 4.3%, resulting in a 72.2% year-on-year increase (YoY) net interest income at N111.9 billion.
Commenting on the results, Nneka Onyeali-Ikpe, Managing Director/CEO of Fidelity Bank Plc, said: We are pleased to report continued growth across major financial indices in our 9M 2022 results. Gross revenue increased by 38, 7% year-on-year to N241.9 billion due to 53.1% growth in interest and similar income to N210.4 billion from N137.4 billion in the 9 months of 2021 YtD per cent expansion of revenue base to 2.579 trillion naira.
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Similarly, total deposits grew by 13.3% year-to-date to N2.294 trillion, from N2.024 trillion in 2021, driven by double-digit growth in deposits. low cost. Low-cost deposits grew by 24.2% year-to-date to N1,873,000 rillio and now account for 81.7% of total deposits, up from 74.5% in 2021. FCY deposits increased by $432 million (45.9% since the start of the year) to reach $1.4 billion and now represent 26.2% of total deposits, compared to 19.7% during the fiscal year 2021, as we continue to harness the benefits of our renewed momentum in export business and the diaspora banking space.
The account statement also showed considerable growth in net loans and advances of 20% year-to-date to N1,989 trillion from N1,658 billion in 2021, with intervention fund facilities and the impact of the devaluation of the naira representing 33.8% of the absolute growth since the beginning of the year of the portfolio of risky assets. The Bank was able to maintain the other regulatory ratios above the required thresholds by maintaining its liquidity ratio at 41.3% and its capital adequacy ratio (CAR) at 19.4% compared to the minimum requirement of 15%.
“We successfully redeemed our $400 million 5-year senior unsecured Reg S/144a notes on October 17, 2022. Noteholders received a total of $421 million covering principal amount and coupon accumulated for 6 months in accordance with the signed trust deeds. We look forward to maintaining momentum in the fourth quarter towards achieving our set targets for fiscal 2022,” Onyeali-Ikpe explained.