Fidelity Bank Plc has recorded a 35.7 per cent growth in profit before tax for its 2021 financial year to close the year at N38.1 billion.
Analysis of the results, according to the bank’s recently issued financial statement, indicated that gross earnings grew by 21.6 per cent YoY (23.2 per cent QoQ) to N250.8 billion driven by a combination of 60.3 per cent growth in non-interest revenue (NIR) and 15.2 per cent increase in interest and similar income.
The bank stated that the growth in NIR “reflects the significant increase in customer transactions resulting in 84.9 per cent growth in trade income, 48.1 per cent in account maintenance charge, and 47.2 per cent increase in digital banking income.”
Other areas of the financial result recorded significant increases in the period under review with total interest and similar income increasing by N26.8 billion.
Similarly, total deposits increased by 19.2 per cent to N2.025 trillion from N1.699 trillion in 2020FY; local currency deposits grew by 16.0 per cent and account for 80.3 per cent of total deposits while foreign currency deposits increased by 33.9 per cent and accounts for 19.7 per cent of total deposits from 17.5 per cent in 2020FY.
Commenting on the financial statement, the MB/CEO of the bank, Mrs. Nneka Onyeali-Ikpe, said:
“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.
“PBT grew by 35.7 per cent to N38.1 billion from N28.1bn in 2020FY, which translates to an increase in RoAE to 12.5 per cent from 10.5 per cent in 2020FY.”
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 per cent of our customers enrolled on the mobile/internet banking products and 90.0 per cent of total customer-induced transactions done on digital platforms with digital banking business contributing 27.6 per cent to net fee income.”
