Fidelity Bank has released its financial results for the third quarter of 2024, reporting a pre-tax profit of N81.6 billion, marking a 135.5% increase from the N34.6 billion recorded in the same period last year.
For the nine-month period ending September 30, 2024, Fidelity’s cumulative pre-tax profit reached N281.4 billion, up by a significant 153.54% year-over-year compared to 2023.
Net interest income for the third quarter also experienced a solid boost, rising by 60.16% to N139.5 billion from N87.1 billion a year earlier.
Furthermore, earnings per share doubled, up by 114.61% year-over-year, reaching N1.99—reflecting increased profitability.
Key Highlights (Q3 2024 vs. Q3 2023)
- Gross Earnings: N249.5 billion, up 76.12% YoY
- Net Interest Income: N139.5 billion, up 60.16% YoY
- Credit Loss Expense: N12 billion, down 1.98% YoY
- Fee and Commission Income: N20.7 billion, up 69.19% YoY
- Fee and Commission Expense: N1.4 billion, down 24.73% YoY
- Pre-tax profit: N81.6 billion, up 135.50% YoY
- Post-tax profit: N63.8 billion, up 114.61% YoY
- Earnings per Share: N1.99, up 114.60% YoY
- Total Assets: N9.5 trillion, up 52.96% YoY
- Cash and Cash Equivalents: N1.1 trillion, up 103.81% YoY
Commentary
In the third quarter of 2024, Fidelity Bank’s gross earnings surged by 76.12%, reaching N249.5 billion—a substantial increase from the N141.6 billion recorded in the corresponding period in 2023.
- The bank’s net interest income climbed to N139.5 billion from N87 billion in Q3 2023, reflecting a 60.16% year-over-year increase.
- Additionally, the bank achieved cost reductions in credit loss and fee and commission expenses, which decreased by 1.98% and 24.73%, respectively, year-over-year. Meanwhile, fee and commission income rose by 69.19% to N20.7 billion.
- Fidelity’s pre-tax profit rose by 135.5% year-over-year, reaching N81.61 billion in Q3 2024, up from N34.65 billion in the same period last year. For the nine-month period, this brought cumulative pre-tax profits to an impressive N281.4 billion.
- Profit after tax also witnessed substantial growth, jumping by 114.61% to N63.8 billion from N29.7 billion in the same period of 2023.
This upward trend extended to the bank’s earnings per share, which soared from N0.93 to N1.99—demonstrating a solid return for shareholders.
Asset Growth
- As of September 30, 2024, Fidelity Bank reported total assets of N9.54 trillion, reflecting a 52.96% year-over-year increase.
- This growth was driven by loans and advances to customers totaling N4.25 trillion, along with cash and cash equivalents amounting to N1.16 trillion. Fidelity’s investment securities portfolio, valued at N1.84 trillion, contributed to its income stream.
- On the liabilities side, the group reported total liabilities of N8.85 trillion.
Cash Flow Performance
- Fidelity Bank reported increased cash flow for the nine months ending September 30, 2024, with net cash from operating activities rising to N2.11 trillion from N418.65 billion in the previous year.
- In its investing activities, the group recorded net cash outflows of N1.31 trillion, primarily attributed to investments in debt instruments and properties. Financing activities saw cash outflows due to dividend payments.
- Overall, the group ended the period with a net increase in cash and cash equivalents of N786.7 billion, bringing total cash reserves to N1.16 trillion.