Fidelity Bank announces 21.6% PBT growth and offers 10 kobo interim dividend – THISDAYLIVE
Fidelity Bank Plc yesterday announced its results and audited accounts for the six months ended June 30, 2022 with a 21.6% increase in pre-tax profit to N25.08 billion from N20.63 billion in the half year closed on June 30, 2021.
The lender on Nigeria Exchange Limited (NGX) also reported a profit of N23.31 billion in the first half of 2022, an increase of 20.7% from N19.31 billion in the first half of 2021.
With the increase in profits, the board and directors of Fidelity Bank proposed an interim dividend of N0.10 kobo per share.
Additionally, the bank reported gross profit of N154.8 billion in the first half of 2022, an increase of 38% from the N112.3 billion reported in the first half of 2021.
The increase in gross income was due to a 52.9% growth in interest income to N136.2 billion in the first half of 2022 from N89.1 billion in the first half of 2021. expansion till date (YTD) from the revenue base to N2,546.5 billion.
However, net commission income decreased by N1.4 billion or 9.6% due to a N10 billion or 117.9% decline in foreign exchange gains.
Fidelity Bank Managing Director/CEO, Nneka Onyeali-Ikpe, explained in a statement: “We are delighted with our performance in the first half of 2022 which showed strong growth across major performance indices.
“Thanks to improved efficiency and customer experience around our network, customer transactions have increased significantly as we optimize our balance sheet and build a large stock of low-cost stablecoins.”
She added: “We have recently entered into a binding agreement to acquire a 100% stake in Union Bank UK Plc, in line with our strategic objectives and drive for business expansion.
“Union Bank UK offers a compelling synergy that we hope to build on to create a scalable and more sustainable service franchise that will support the wider ecosystem of our business and diaspora banking business.”
Fidelity Bank’s total deposits grew 13.1% year-to-date to 2,290.1 billion naira, from 2,024.8 billion naira in 2021, driven by double-digit growth in deposits. low-cost deposits (Application | Savings | Direct Debit).
Low-cost deposits grew by 26.1% year-to-date to reach N1,902.4 billion and now account for 83.1% of total deposits, up from 74.5% during the year. financial year 2021, which explains the lower cost of financing.
The bank’s FCY deposits grew by $497 million (52.8% year-to-date) and now represent 26.5% of total deposits, up from 19.5% in 2021, as we continue to capitalize on our renewed dynamism in the export and diaspora banking sector. space.
Net loans and advances increased by 15.3% year-to-date to N1,912.7 billion from N1,658.4 billion in 2021, with intervention funding accounting for over 32% of the absolute growth of the portfolio of risky assets.
However, Fidelity Bank’s non-performing loan (NPL) ratio fell to 2.7% from 2.9% in 2021, leading to a decline in the cost of risk to 0.2% from 0.5% in 2021, as asset quality continues to improve.
The other regulatory ratios were above the required thresholds with a liquidity ratio of 4.7% and a capital adequacy ratio (CAR) of 19.8% compared to the minimum requirement of 15%.