Fidelity Bank reports N200.8bn pre-tax profit, proposes interim dividend

Fidelity Bank PLC has reported a remarkable pre-tax profit of N200.8 billion in its financial statements for the half-year ending June 30, 2024, marking a substantial 163 per cent year-over-year (YoY) growth from the same period in 2023.

The impressive performance is largely attributed to gains from financial assets and a significant increase in net interest income.

Fidelity Bank’s gross earnings surged by 107.6 per cent YoY, rising from N247.1 billion in 2023 to N512.8 billion in 2024.

This growth was driven by robust performance in net interest income, which increased by 202.7 per cent to N326.4 billion.

The bank also witnessed a sharp rise in fee and commission income, reaching N35 billion, up 45.1 per cent from N24.1 billion last year.

Despite rising interest expenses, which increased by 78.9 per cent YoY to N146.8 billion, the bank maintained strong profitability. Net gains from financial assets at fair value also improved, reaching N34.6 billion, up from N23.4 billion in 2023.

Profit after tax grew by 157.8 per cent YoY to N159.8 billion, while earnings per share (EPS) rose to N4.9, up from N1.9 in the same period last year.

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Fidelity Bank’s total assets expanded by 27.2 per cent, reaching N7.9 trillion, further solidifying its financial position.

Financial analysts have applauded Fidelity Bank’s robust financial performance, citing effective cost management and strategic investments in financial instruments as key drivers.

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John Adebayo, an investment expert, highlighted the bank’s ability to manage liquidity efficiently, noting, “Fidelity Bank’s 95.9 per cent increase in cash and cash equivalents to N801.7 billion is a testament to its prudent financial management and strong growth prospects.”

Adebayo added that the bank’s 202 per cent surge in net interest income, despite rising interest expenses, shows its ability to maximize returns from core banking operations.

To further reward shareholders, Fidelity Bank has proposed an interim dividend of N0.85 per ordinary share of N0.50.

The dividend will be paid to registered shareholders as of October 17, 2024, and is subject to withholding taxes.

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Financial analyst,  Ngozi Okechukwu commented, “The proposed dividend reflects the bank’s commitment to delivering value to shareholders. This, coupled with the bank’s healthy financial results, positions Fidelity as a strong contender in Nigeria’s banking sector.”

Analysts believe Fidelity Bank’s continued focus on asset growth and liquidity management will ensure its strong performance in the coming quarters, with analysts forecasting further gains as the bank capitalizes on the bullish market sentiment sparked by successful public offers.

Fidelity Bank’s impressive half-year financial performance, coupled with its proposed dividend and sound liquidity position, underscores its operational health and growth trajectory, reaffirming its leadership position in Nigeria’s banking sector.