Fidelity Bank records impressive 172% growth in pre-tax profit for Q3
By Kingsley Odii
Fidelity Bank has announced a staggering 172.60% year-on-year growth in pre-tax profit for the third quarter of 2023, reaching an impressive N34.658 billion. This substantial increase has contributed to a nine-month pre-tax profit of N110.992 billion, compared to N37.792 billion during the same period last year.
Key Highlights of Fidelity Bank’s Q3 2023 Results:
Gross earnings surged by 62.77% year-on-year, reaching N141.693 billion.
Interest Income witnessed a remarkable growth of 82.01% year-on-year, amounting to N134.915 billion. Interest Expense increased by 26.03% year-on-year, totaling N47.785 billion.
Net interest income experienced a substantial growth of 140.61% year-on-year, reaching N87.129 billion.
Credit loss expense spiked by a remarkable 621.81% year-on-year, amounting to N12.650 billion.
Net interest income after credit loss expense witnessed an impressive growth of 116.94% year-on-year, totaling N74.869 billion.
Fees and commission income also showed positive growth, increasing by 37.15% year-on-year to reach N12.286 billion.
On the other hand, fees and commission expense decreased by 42.09%, totaling N1.981 billion.
Fidelity Bank experienced a net foreign exchange loss of N7.170 billion, in contrast to a gain of N3.866 billion in the previous period. The bank’s profit for the period witnessed a remarkable growth of 155.39% year-on-year, amounting to N29.758 billion.
Earnings per share also experienced an impressive growth of 132.50% year-on-year, reaching 93 kobo. Loans and advances to customers increased by 25.46% year-on-year, totaling N2.655 trillion. Cash and Cash equivalents witnessed a growth of 89.35% year-on-year, reaching N568.708 billion.
Fidelity Bank’s total assets have increased by 35.71% year-on-year, amounting to N5.414 trillion. Customers’ deposits have also shown positive growth, increasing by 33.30% year-on-year to reach N3.44 trillion. Insights and Analysis:
The exponential increase in pre-tax profit can be primarily attributed to the substantial growth in gross earnings, fueled by the increased net interest income and net fees and commission income. However, it is important to note that the bank’s credit loss expense experienced a remarkable surge of 621.18% to N12.260 billion.
Additionally, Fidelity Bank reported a net foreign exchange loss of N7.170 billion, contrasting the N3.866 billion gain reported in the previous period. This moderated the overall foreign exchange gain for the nine-month period to N24.993 billion.
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