Fidelity Bank grows profit to N35.5bn

Fidelity Bank Plc has released its financial result for the year ended 2021 to the Nigeria exchange limited which indicates that the lender recorded growth in its Profit After Tax from N26.7 billion in 2020 to N35.5bn.

The bank recorded 35.7% growth in Profit Before Tax for its 2021 financial year to close the year at N38.1bn.

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Analysis of the results indicates that the bank grew Gross Earnings by 21.6% YoY (23.2% QoQ) to N250.8bn driven by a combination of 60.3% growth in non-interest revenue (NIR) and 15.2% increase in interest and similar income.

 The growth in NIR reflects the significant increase in customer transactions resulting in 84.9% growth in trade income, 48.1% in account maintenance charge, and 47.2% increase in digital banking income.

Commenting on its performance, the bank’s MD/CEO, Nneka Onyeali-Ikpe, noted: “We closed the financial year with strong double-digit growth in profit and across key balance-sheet lines, which reflects the disciplined execution of our strategy and capacity to deliver superior returns to shareholders.

“Profit Before Tax grew by 35.7% to N38.1bn from N28.1bn in 2020FY, which translates to an increase in RoAE to 12.5% from 10.5% in 2020FY.”

Other areas of the financial result recorded significant increases in the period under review with total interest and similar income increasing by N26.8bn.

Detailing the contribution of the bank’s digital-led retail strategy to its financial performance, Onyeali-Ikpe stated: “Digital Banking gained further traction driven by new initiatives in our retail business and the enhancement of existing digital banking products.

 “We now have 56.0% of our customers enrolled on the mobile/internet banking products and 90.0% of total customer-induced transactions done on digital platforms with digital banking business contributing 27.6% to net fee income.”