Fidelity Bank Plc released its Q3 2022 Unaudited results for the period ended September 30^th, 2022.

Key Highlights

• Revenue grew by 38.7% from N174.35bn to N241.89bn.
• Profit before tax stood at N37.79bn
• Profit after tax stood at N34.96bn
• Share Price Currently Stands at N3.80k

Fidelity Bank announced its Unaudited Financial Statements for the 9 months ended 30 Sep 2022. 

Financial Highlights

Key Ratios 

• Return on Avg. Equity (RoAE): 15.2% compared to 12.5% in 2021FY 
• Net Interest Margin (NIM): 6.2% compared to 4.7% in 2021FY 
• Cost of Risk (CoR): 0.3% compared to 0.5% in 2021FY 
• Cost to Income Ratio (CIR): 68.8% compared to 64.9% in 2021FY 
• Non-performing Loans Ratio (NPL): 3.4% compared to 2.9% in 2021FY 
• Capital Adequacy Ratio (CAR): 19.4% compared to 20.1% in 2021FY

Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank Plc commenting on the results, stated that: 

“Gross Earnings increased by 38.7% YoY to N241.9bn on account of 53.1% growth in interest and similar income to N210.4bn from N137.4bn in 9M 2021. The increase in Interest Income was driven by improved yield on earnings assets and 16.3% YTD expansion in earnings base to N2,579.0bn. However, net fee income declined by N4.6bn (17.7% YoY) due to N7.3bn (75.5% YoY) drop in foreign exchange gains. 

Net Interest Margin improved to 6.2% from 4.7% in 2021FY, due to increased market yields while average funding cost remained unchanged YTD. Average yield on earning assets increased by 166bps to 11.7% while average funding cost stood at 4.3%, which resulted in 72.2% YoY increase in net interest income to N111.9bn. Though we have sustained lower funding cost since Q1 2022, the recent upward review of policy rates will translate to higher cost of deposits in Q4 as well as increased market yields. 

Operating Expenses increased by 51.9% YoY to N91.6bn, however, it dropped by 18.2% QoQ. Regulatory charges (AMCON | NDIC) and staff cost represent 50.8% of our total operating expenses and were responsible for at least 38.0% of the growth in 9M 2022. We have absorbed the full - year AMCON charge of N18.3bn and expect a further moderation in operating expenses in Q4. 

Total Deposits increased by 13.3% YTD to N2,294.7bn from N2,024.8bn in 2021FY, driven by double-digit growth in low-cost deposits (Demand | Savings | Domiciliary). Low-cost deposits increased by 24.2% YTD to N1,873.6bn and now represents 81.7% of total deposits from 74.5% in 2021FY. FCY deposits increased by $432m (45.9% YTD) to $1.4bn and now accounts for 26.2% of total deposits from 19.7% in 2021FY, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space. 

Net Loans and Advances increased by 20.0% YTD to N1,989.3bn from N1,658.4bn in 2021FY. However, intervention fund facilities and the impact of naira devaluation were responsible for 33.8% of the absolute YTD growth in risk assets book. Non-performing loans (NPL) ratio increased to 3.4% from 2.9% in 2021FY, while cost of risk came in at 0.3% from 0.2% in Q2 2022 as we increase our loan provision buffers against any headwinds in our environment. 

Other Regulatory Ratios were above the required thresholds with liquidity ratio at 4 1.3% and capital adequacy ratio (CAR) at 19.4% compared to the minimum requirement of 15.0%. 

We have successfully redeemed our $400mn Reg S / 144a Senior Unsecured 5 -yr Notes on 17t h Oct 2022. Noteholders received a total of $421mn covering the principal amount and the accrued 6 months coupon in line with the executed Trust Deeds. 

We look forward to sustaining the momentum in Q4 towards achieving our set targets for 2022 Financial Year.”