Fidelity Bank Plc doubled its profit before tax (PBT) in 2022, according to its audited financial statements released on the Nigerian bourse on Thursday.

The PBT of N53.7 billion represents a 112.9 percent annual growth — a feat celebrated by Nneka Onyeali-Ikpe, the bank’s MD/CEO, as a validation of the growth strategy.

There was also a 34.4 percent growth in year-on-year (YoY) gross earnings to N337.1 billion.

This was driven by a 45.2 percent growth in interest and similar income to N295.6 billion, in itself led by a combination of improved yield on earning assets and 19.1 percent YoY expansion in earnings base to N2.64 trillion.

“We are happy to report another year of impressive double-digit growth across key income and balance sheet lines. This validates our growth strategy and capacity to deliver superior returns to shareholders,” Onyeali-Ikpe said while commenting the financial report.

Other highlights of the audited statements include:

Net interest income increased by 60.9 percent YoY to N152.7 billion
The net interest margin increased to 6.4 percent from 4.7 percent in 2021 as a result of the high yield environment
Average funding cost went up marginally to 4.6 percent from 4.2 percent
Total deposits went up by 27.4 percent to N2.58 trillion from N2.02 trillion in 2021FY. The increase was driven by 43.1 percent growth in low-cost deposits.
On the contribution of foreign currency deposits to its financial performance, Onyeali-Ikpe said: “FCY deposits increased by $597m (63.4% YoY) to $1.5bn and now accounts for 27.5% of total deposits from 19.7% in 2021FY, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space.”

Fidelity Bank has always maintained high asset quality and a healthy balance sheet with its regulatory ratios well above the minimum regulatory thresholds.

It reported a liquidity ratio of 39.6 percent and capital adequacy ratio (CAR) at 18.1 percent, compared to the minimum regulatory requirement of 30 percent and 15 percent respectively.

Its non-performing loans (NPLs) ratio remained unchanged at 2.9 percent for the year.

“In 2023, we are committed to our strategic plan of expanding our service touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clientele,” Onyeali-Ikpe explained.

Meanwhile, the bank has declared a final dividend of 40 kobo per share, bringing its total dividend to 50 kobo per share for the year.

Fidelity Bank, a full-fledged customer commercial bank, has over 7.5 million customers across its 250 business offices and digital banking channels.

The bank was recognised as the best payment solution provider Nigeria 2023 as well as best SME bank in 2022 by the Global Banking and Finance Awards, and was also named the fastest growing bank and MSME and entrepreneurship financing bank of the year at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.