Fidelity Bank reports record N36 billion annual profit, declares N10.1 billion dividend

Fidelity Bank’s net profit for last year expanded by more than one-third to N35.6 billion, its peak level ever, the audited financial result of the tier 2 lender issued Friday morning showed.

The growth owed its debt largely to higher interest income from credit to customers and to earnings from fee & commission, both helping to lift turnover by 21.6 per cent to N250.8 billion from a year earlier.

Within the period, the lender provisioned N7 billion for credit facilities that are liable to go bad on account of default, compared to the N16.9 billion it allocated for the same purpose in the previous year, easing the impact of operating expenses on earnings.

“As at 31 December 2021, gross loans and advances were N1.73 trillion comprising local and foreign denominated loans against which total loan impairment of N74.1billion was recorded, resulting in a net loan balance of N1.66 trillion,” Deloitte & Touche, the independent auditor, said in its report.

“This value represents 50% of the total assets as at the reporting date,” it added.

Profit before income tax advanced by 35.6 per cent to N38.1 billion while after-tax profit scaled up 33.5 per cent to N35.6 billion.

Profit margin, which measures how much of revenue has turned into profit, stood at 14.2 per cent, slightly higher than the 12.9 per cent a year before.

The lender has proposed a cumulative dividend of N10.1 billion translating to N0.35 per share, which is subject to shareholders’ endorsement at its forthcoming annual general meeting. Put differently, it will be paying 59.1 per cent more than it paid for 2020.

Shares in Fidelity Bank were quoted at N3.34 per unit at 12:28 West Africa Time on the Nigerian Exchange on Friday, trading up 6.25 per cent.