For the 2024 fiscal year that concluded on December 31, Fidelity Bank Plc reported a pre-tax profit of N385.215 billion, representing a remarkable 210.01 percent year-over-year (YoY) increase.

The post-tax profit increased by 179.63 percent to N278.106 billion in spite of a windfall tax of N13.33 billion.

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Core operational income accounted for 97% of total revenue

The audited financial statement shows that core operational income accounted for roughly 97 percent of total revenue, while gross earnings increased by 87.72 percent to N1.043 trillion.

A final dividend of N1.25k per share, up from N0.85k in 2023, has been proposed by the Board and is due on April 29, 2025.

With the N0.85k interim dividend to be paid from retained earnings, the total dividend for 2024 now stands at N2.10k per share.

Interest income accounted for 97% of total revenue

Interest income continued to be a major component of Fidelity Bank’s earnings structure, making up 91 percent of total revenue. The main causes of this were interest received from consumer advances and loans (66 per cent contribution) and earnings from securities investments (17.19 percent contribution).

Notably, securities investment rose while loan contributions decreased. Loans and advances increased by N1.2 trillion, but securities investments increased by N1.55 trillion, adding N733.544 billion in 2024.

Disparity between income and cost

A greater disparity between income and costs is reflected in the interest expense to interest income ratio, which fell from 39.6 percent in 2023 to 33.8 percent.

A healthy net interest income was maintained by Fidelity’s strong interest margin, even though interest costs on customer deposits increased by 56 percent to N212.7 billion. The bank’s liquidity position was further strengthened by attracting N1.922 trillion in new deposits and raising N352.567 billion in debt.

The bank experienced increased credit losses, which is indicative of a risky lending climate for banks in Nigeria. Details from its financials show that the total credit loss expense decreased to N56.441 billion, of which loans and advances accounted for 91.47 percent (N51.63 billion).

However, Stage 3 Expected Credit Loss (ECL) applied to 73.46 percent of these loans. Banks make loan provisions known as credit losses to cover loans they believe may default. Generally speaking, stage 3 loans are in poor condition.

Nevertheless, after bad loans were covered, net interest income remained high, and the N70.312 billion in net fees and commission income helped to generate a healthy pre-tax profit.

The letters of credit commission and fees (N9.47 billion), ATM fees (N6.4 billion), and commission on traveller’s cheques and foreign currency (N6.9 billion) were the main causes of Fidelity Bank’s increase in commission and fees.

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Fidelity Send

The bank recently introduced “Fidelity Send,” a MasterCard-powered real-time payment platform that makes it possible for people and businesses to send and receive money securely and swiftly. On these transactions, the bank takes a cut.

Due to a 133.58 percent increase in share capital and premium accounts, Fidelity’s shareholders’ funds increased by 105.32 percent to N305.555 billion.

This implies that Fidelity is getting closer to fulfilling the N500 billion new capital requirement set by the CBN.

The bank is ready to return to the market after announcing on February 7, 2025, that its rights issue and public offer had been completed successfully.

Key highlights of Fidelity Bank’s financial result (2024 vs. 2023)

Gross earnings: N1.043 trillion (+87.72 percent YoY)

Interest Income: N950.588 billion (+106.85 percent YoY)

Interest Expense: N320.818 billion (+76.11 percent YoY)

Net interest income: N629.770 billion (+127.05 percent YoY)

Credit loss expense: N56.441 billion (-16.30 percent YoY)

Net interest income after credit loss expense: N573.329 billion (+173.11 percent YoY)

Fees and commission income: N78.355 billion (+57.97 percent YoY)

Fees and commission expense: N8.043 billion (-31.91 percent YoY)

Foreign exchange revaluation gains:  N11.716 billion (-73.43 percent YoY)

Profit for the period N278.106 billion (+179.63 percent YoY)

Earnings per share N6.65 (+113.83% YoY)

Loans and advances to customers: N4.387 trillion (+41.87 percent).

Cash and Cash equivalents N707.450 billion (+94.26 percent)

Total Assets: N8.822 trillion (+41.49 percent).

Customers’ deposits: N5.937 trillion (+47.88 percent)

Shareholders’ funds: N897.874 billion (105.32 percent YoY)