Fidelity Bank reports record ₦385.2b profit, eyes further expansion
Fidelity Bank
Fidelity Bank has recorded a significant financial milestone, announcing a profit before tax of ₦385.2 billion for the 2024 fiscal year, representing a 210% increase from the previous year.
According to the financial results filed with the Nigerian Exchange (NGX), the bank’s gross earnings surged by 87.7% to ₦1.04 trillion, driven by a 106.9% increase in interest and similar income, which stood at ₦950.6 billion.
The money lender attributed this growth to an improved yield on earning assets and a 51.6% expansion in the earnings base, which reached ₦6.3 trillion.
Sustained Growth Amid Economic Challenges
Despite economic uncertainties, Fidelity Bank has maintained steady growth across key financial metrics. Net interest income climbed by 127.1% to ₦629.8 billion, with the bank leveraging a high-yield environment and a robust deposit strategy. The company’s net interest margin also improved significantly, rising from 8.1% in 2023 to 12% in 2024.
Nneka Onyeali-Ikpe, the bank’s Chief Executive Officer (CEO), expressed satisfaction with the bank’s performance, highlighting its resilience and strategic execution.
“We are delighted with our 2024 full-year performance, which showed strong growth across key revenue lines, improved asset quality, and significant traction in our strategic business segments,” she stated.
Fidelity Bank also expanded its market share in both corporate and retail segments, with customer deposits increasing by 47.9% from N4 trillion in 2023 to ₦5.9 trillion in 2024. Savings deposits saw a notable 28.8% increase to ₦1.1 trillion, marking the 10th consecutive year of double-digit growth in this category.
Commitment to Shareholders and Future Growth
In line with its commitment to delivering value to investors, the bank declared a total dividend of ₦2.1 per share for 2024. Onyeali-Ikpe emphasized the significance of this payout, stating:
“This remarkable performance demonstrates our capacity to deliver superior returns to our shareholders. In line with our commitment to them, we have declared a final dividend of ₦1.25 per share, bringing our total dividend for the 2024 financial year to ₦2.10 per share.”
The proposed dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM) on April 29, with payment scheduled for the same day to shareholders registered as of April 15.
Looking ahead, Fidelity Bank has set its sights on further strengthening its capital base. The bank recognized ₦175.9 billion in fresh capital in 2024, boosting its capital adequacy ratio to 23.5%. Additionally, it plans to complete the second phase of its capital-raising scheme by Q3 2025, well ahead of the Central Bank of Nigeria’s (CBN) deadline.
This robust financial performance and strategic foresight reinforce Fidelity Bank’s position as a key player in Nigeria’s financial sector, poised for for sustained growth and expansion.
