Fidelity Bank reported its 2023 second-quarter results showing pre-tax profits grew by 184.08% year on year, reaching N43.58 billion.
This took half-year pre-tax profits to N61.19 billion versus N25.67 billion in the same period last year.
Key highlights Q2 2023 vs. Q2 2022:
- Gross earnings N145.96 billion +72.72% YoY
- Interest Income N109.69 billion +33.93% YoY
- Interest Expense; N45.497 billion +53.63% YoY
- Net interest income; N55.194 billion +21.13% YoY
- Credit loss expense N13.261 +1,102.27% YoY
- Net interest income after credit loss expense N41,934 -5.69% YoY
- Net income on fees and commission N8.358 billion +59.69% YoY.
- Other operating income N33.024 billion +2,279.82% YoY
- Net gains from financial assets at fair value through profit or loss N5.433 billion +1,154.73% YoY
- Profit for the period N38.019 billion +185.26% YoY.
- Earnings per share 131 kobo +184.78% YoY
- Loans and advances to customers N2.65 trillion +25.23%.
- Cash and Cash equivalents N490.014 billion +63.15%
- Total Assets N5.052 trillion +26.65%.
- Customers’ deposits N3.179 trillion +23.18%.
Insights: The substantial growth in pre-tax profit can be attributed to the significant growth in gross earnings, driven by growth in net interest income, net fees, commission income, and other operating income, including a substantial YoY gain of 5,053% in net foreign exchange gains.
- However, the bank’s net interest income after credit loss expense declined due to substantial growth in credit loss expense.
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What I have seen so far of the remarkable progress of the Fidelity Bank Plc has been very encouraging and laudable. What a man could do, a woman could do better is the position of the bank. I had my early doubt about the efficacy and proficiency of the new Managing Director of the bank. A woman with a genuine sense to excel. She has proven beyond any reasonable doubt that she is capable of moving the bank to a greater height. Guaranty Trust Bank Plc started the experiment, and it is paying up for the bank. The short- and long-term plan of the Fidelity Plc to expand its operation internationally may prove to enhance the success of the bank on the long-run. I am happy for the good intension of the bank to expand its operation far and beyond the Nigerian shore. I will encourage other banks in Nigeria to learn from the Fidelity strategies and expansion opportunity. The strategy, on the long run will pay off for both the stakeholders and shareholders of the bank. Kudos to both the management and staff of the bank for a well-done job.
Yeah! Weldone!! It’s too early to assess results now in the short run.What about the long run,when functions transform to a saucer curve? See First Bank situations.