Fidelity Bank Profit Rises by 166% to N62 Billion
Fidelity Bank profit rose by about 166% in the first half of the financial year 2023 to about N62 billion, from N23 billion in the comparable year in 2022. The strong feat recorded in the period was driven by the combined effects of revaluation gain on financial assets and foreign currency positions.
As a result, the bank saw a spike in earnings per share to 193.73 kobo from 80.47 kobo 12 months earlier. A review of the bank’s financial statement showed that a high interest rate environment supported its margin and foreign exchange reforms boosted its trading gains. The bank reported N32.163 billion gain as a result of the naira devaluation in June 2023.
Its financial statement showed that the tier-2 lender lost N1.5 billion to FX revaluation in the comparable period in 2022.
“Net foreign exchange gains represent unrealised gains from the revaluation of foreign currency-denominated assets and liabilities held in the non-trading books”, Fidelity Bank said in the report.
Gross earnings increased significantly to N247.10 billion in the first half of 2023, representing 20% year-on-year growth when compared with N154.843 billion the bank reported in the equivalent period in 2022.
In 12 months, Fidelity Bank has expanded its loan book amidst the resumption of the Central Bank of Nigeria’s 65% loans to deposit target requirements.
Net interest income printed higher at about N108 billion, according to details from its financial scorecard submitted to the regulators. The feat was 43% above N75.638 billion the tier-2 lender reported in the first half of 2022.
In the period, the bank saw an improvement in its non-interest revenue, supported by a strong growth in fee and commission income, up by more than 50% year on year to N24.146 billion.
Fidelity Bank’s earnings boost was majorly driven by a significant surge in its other operating income line. The tier-2 bank reported that other income grew to N33.049 billion in 12 months from N2.5 billion.
The bank also saw an additional push from financial asset revaluation, rising to N23.448 billion from N866 million in the comparable period. Fidelity Bank explained in its result that net gains on debt instruments financial assets it reclassified from other comprehensive income amounts.
In the stock market, the bank’s valuation rose to N248 billion, according to data from the Nigerian Exchange. Fidelity Bank Loses 25% of Its Market Value #Fidelity Bank Profit Rises by 166% to N62 Billion
Nneka Onyeali-Ikpe, Fidelity Bank Chief Executive