Fidelity Bank PLC has reported a pre-tax profit of N200.8 billion in its financial statements for the period ending June 30, 2024. This marks a substantial 163% year-over-year (YoY) increase compared to the same period in 2023, driven by gains from financial assets at fair value and a sharp rise in net interest income.
Exceptional Growth in Net Interest Income
The bank saw its net interest income surge by 202% YoY to N326.4 billion. This significant growth in income contributed to the overall profitability of the institution. In recognition of its strong financial performance, Fidelity Bank has proposed an interim dividend of N0.85 per ordinary share, which will be payable to shareholders whose names appear on the register as of October 17, 2024.
Key Financial Highlights
- Gross Earnings: N512.8 billion (+107.6% YoY)
- Interest Expenses: N146.8 billion (+78.9% YoY)
- Net Interest Income: N326.4 billion (+202.7% YoY)
- Fee and Commission Income: N35 billion (+45.2% YoY)
- Pre-tax Profit: N200.8 billion (+163.1% YoY)
- Post-tax Profit: N159.8 billion (+157.8% YoY)
- Earnings Per Share (EPS): N4.9 (+157.8% YoY)
- Total Assets: N7.9 trillion (+27.2% YoY)
- Total Liabilities: N7.3 trillion (+25.9% YoY)
- Cash and Cash Equivalents: N801.7 billion (+95.9% YoY)
Robust Earnings and Profitability
Fidelity Bank’s gross earnings climbed by 107.6% YoY to N512.8 billion, compared to N247.1 billion for the same period last year. Although interest expenses increased by 78.9% YoY to N146.8 billion, the sharp rise in net interest income resulted in substantial profit growth.
The bank’s fee and commission income also improved, rising to N35 billion, up 45.2% YoY from N24.1 billion. Net gains from financial assets at fair value increased to N34.6 billion, compared to N23.4 billion in the previous year.
Despite rising costs, Fidelity Bank’s pre-tax profit reached N200.8 billion, reflecting a 163.1% YoY growth. After-tax profit also soared, climbing 157.8% YoY to N159.8 billion. Earnings per share (EPS) increased to N4.9, compared to N1.9 in 2023, showcasing improved returns for shareholders.
Strong Asset Growth and Liquidity
Fidelity Bank’s total assets expanded by 27% YoY to N7.9 trillion, up from N6.2 trillion in the same period last year, signaling strong financial positioning. Total liabilities also rose by 25.9% YoY to N7.3 trillion, underscoring the bank’s expansion and growth.
In terms of liquidity, the bank’s cash and cash equivalents nearly doubled, rising by 95.9% to N801.7 billion, highlighting its strong liquidity position and financial resilience.
Cash Flow Performance
Fidelity Bank’s cash flow from operating activities increased by 7.2% YoY to N1 trillion. However, the bank’s investing activities resulted in a net outflow of N617.2 billion, primarily due to purchases of debt instruments. Financing activities also recorded a net outflow of N13.7 million.
Despite these outflows, the bank achieved a net increase in cash and cash equivalents of N801.7 billion, reaffirming its solid cash flow management.
Dividend Payment
Fidelity Bank has proposed an interim dividend of N0.85 per ordinary share of N0.50, payable to shareholders as of October 17, 2024. This dividend is subject to applicable withholding taxes and is expected to boost investor confidence, potentially driving an increase in the bank’s share price.
With a profitable outlook and strong operational performance, Fidelity Bank’s financial results for the first half of 2024 reflect its ability to generate sustained growth and deliver value to its shareholders.
Source: NairaMetrics