Fidelity Bank has reported a pre-tax profit of N200.8 billion for the period ending June 30, 2024, representing a 163 per cent year-over-year (YoY) increase compared to N76.3 billion in the same period of 2023.
The bank has proposed an interim dividend of N0.85 per share, amounting to N27.2 billion, to be paid to shareholders whose names appear on the company’s register as of October 17, 2024. The dividend will be subject to withholding tax.
The strong financial performance, supported by significant gains from financial assets at fair value, also saw the bank’s net interest income soar by 202 per cent reaching N326.4 billion. Fidelity’s financial report filed on the Nigerian Exchange Limited (NGX) showed the bank’s gross earnings surged by 107.6 per cent YoY to N512.8 billion, driven by an increase in fee and commission income, which grew 45.2 per cent to N35 billion.
Furthermore, the bank’s net profit after tax (PAT) stood at N159.8 billion, reflecting a 157.8 per cent increase, with earnings per share (EPS) rising to N4.9 from N1.9 in the previous year, indicating significant returns to investors. Interest expenses climbed by 78.9 per cent to N146.8 billion, yet the bank still recorded a substantial increase in net interest income, highlighting improved efficiency in its operations. Net gains from financial assets held at fair value contributed N34.6 billion, up from N23.4 billion in 2023.
In addition to robust profitability, Fidelity’s balance sheet showed strong asset growth, with total assets increasing by 27 per cent to N7.9 trillion from N6.2 trillion in the previous year. Liabilities grew by 25.9 per cent YoY to N7.3 trillion. Cash and cash equivalents rose sharply by 95.9 per cent, totaling N801.7 billion, which underscores the bank’s strong liquidity position and growth prospects. The bank also reported a 7.2 per cent YoY increase in cash flow from operating activities, reaching N1 trillion, while cash outflows from investing and financing activities amounted to N617.2 billion and N13.7 million, respectively. The bank attributed its performance to a diverse portfolio and a focus on expanding profitability through digital banking channels and international operations.
SOURCE: THE SUN
