Fidelity Bank Plc (NGX: FIDELITYBK) reported a 37.88% growth in gross earnings for the first half of the year ended June, 30, 2022 and a 20.72% increase in profit after tax for the period.
Income statement
- Gross earnings rose to N154.84 billion in June 2022 from N112.30 billion in June 2021.
- Net interest income rose to N75.64 billion in June 2022 from N50.30 billion in June 2021.
- Fees and commission income rose to N16.08 billion in June 2022 from N12.73 billion in June 2022
- Personnel and other operating expenses amounted to N15.23 billion and N43.42 billion respectively in June 2022. In June 2021, personnel and other operating expenses stood at N11.10 billion and N27.66 billion respectively.
- Profit before tax increased to N25.08 billion in June 2022 from N20.63 billion in June 2021.
- Fidelity Bank Plc reported an income tax expense of N1.77 billion in June 2022, up from N1.32 billion recorded in June 2021.
- Profit for the period after tax rose to N23.31 billion in June 2022, from N19.31 billion in June 2021.
- Earnings per share rose slightly to N0.80 in June 2022 from N0.67 in June 2021.
The Board of Directors, of the bank proposed an interim dividend of N0.10 per share from the retained earnings account as at 30 June, 2022. This will be presented for ratification by the shareholders at the next Annual General Meeting.
Payment of dividends is subject to withholding tax rate of 10% in the hands of qualified recipients.
Read also: Fidelity Bank Plc to acquire 100% equity stake in Union Bank UK Plc
Balance sheet
Fidelity Bank Plc total assets rose to N3.69 trillion as at June 30, 2022 from N3.29 trillion as at December 31, 2021.
Major components of the assets:
- Loans and advances to customers: N1.91 trillion (N1.66 trillion in 2021)
- Restricted balances with central bank N700.74 billion (N686.10 billion in 2021)
- Debt instrument at amortised cost: N483.86 billion (N441.45 billion in 2021)
- Cash and cash equivalents: N296.48 (N219.25 in 2021).
Total liabilities rose to N3.38 trillion as at June 30, 2022 from N2.99 trillion as at December 31, 2021, mainly due to increase in customers’ deposits.
Major components of the liabilities:
- Deposits from customers: N2.29 trillion (N2.02 trillion in 2021)
- Other liabilities: N655.64 billion (N490.76 billion in 2021)
- Debts issued and other borrowed funds: N425.21 billion (N468.41 billion in 2021)
Total shareholders’ equity also increased to N311,73 billion as at June 30, 2022 from N297.77 billion in 2021, mainly due to increase in Non-distributable regulatory reserve (NDR) to N35.48 billion in June 2022 from N27.44 billion in 2021.
Cash flow:
- Net cash flows generated from operations jumped to N229.65 billion in June 2022 against N31.39 billion used in 2021.
- Net cash used in investing activities rose to N83.78 billion in June 2022 from N33.97 billion in 2021.
- Net cash used in financing activities also increased to N67.13 billion in June 2021 against N27.85 billion generated in June 2021.
About Fidelity Bank Plc
The Bank was incorporated on 19 November 1987 as a private limited liability company in Nigeria. It obtained a merchant banking license on 31 December 1987 and commenced banking operations on 3 June 1988. The Bank converted to a commercial bank on 16 July 1999 and re-registered as a public limited company on 10 August 1999. The Bank’s shares were listed on the floor of the Nigerian Stock Exchange (now Nigerian Exchange Group) on 17 May 2005.
The principal activity of the Bank continues to be the provision of banking and other financial services to corporate and individual customers from its Headquarters in Lagos and 250 business offices. These services include retail banking, granting of loans and advances, equipment leasing, collection of deposits and money market activities.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
