Q3 2021: Fidelity Bank’s profit up 31.4% as deposits hit N1.973trn

Fidelity Bank shareholders to get 60 kobo dividend

LAGOS  – Fidelity Bank Plc has posted yet another impressive financial performance for the 3rd Quarter of 2021. 

Details of the nine-month results for the period ended September 30, 2021, released to the management and stockbrokers of the Nigerian Exchange (NGX) showed a double-digit growth in revenues, deposits and profitability. 

Gross earnings grew by 12.5 percent to N174.4 billion from N155.0 billion in the same period in 2020 while profit before tax (PBT) soared by 31.4 per cent to N28.1 billion from N21.3 billion recorded in the corresponding period of 2020. 

In other indices, total assets grew by 15.4 percent to N3.183 trillion from N2.758 trillion in the same period last year. Total deposits, a measure of customer confidence, increased by 16.1 per cent year-to-date to N1.973 trillion from N1.699 trillion in full year 2020, driven by increased deposit mobilization across all deposits types. 

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Mrs. Nneka Onyeali-Ikpe, Fidelity Bank’s CEO, while commenting on the impressive performance, said: “We were able to sustain our performance trend since the start of 2021 with an impressive double-digit growth in profit driven by 69.9 per cent increase in net fee income which compensated for the decline in net interest income as average yield on liquid assets remain low.” 

She noted that digital banking has continued to gain traction as the bank now has 56.1 per cent of its customers enrolled on digital banking platform from 52.8 per cent in the full year 2020. 

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While stating that the bank had recorded a 125 percent year-on-year (YoY) increase in total NIP transaction and 24.9 per cent, she stated that 24.9 per cent of fee-based income currently comes from digital banking. 

“Other regulatory ratios remain well above the minimum requirement: Capital Adequacy Ratio (CAR) at 18.8 per cent from 18.2 per cent in full year 2020 while liquidity ratio came in at 34.5 per cent, well above the regulatory threshold of 30.0 per cent”, she noted. 

Fidelity Bank recently completed a highly successful Eurobond offering, raising US $400 million from the international capital markets through a five-year tenor Eurobond. The offering achieved a 7.625 per cent coupon per annum and recorded a 1.8x over-subscribed orderbook which peaked at over $700 million. 

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“The pricing of the Senior Unsecured Notes, underscores the formidable confidence of a diversified range of global and local investors in Fidelity Bank’s growth aspirations and the well-experienced management team”, explained Mrs. Onyeali-Ikpe. 

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