The earning assets of Fidelity Bank Plc grew significantly to N2.64 trillion in 2022.
Earning assets are the income-producing investments that a company owns or holds. They include stocks, bonds, rental property income, and other interest or dividend-earning accounts.
According to the audited financial statements of Fidelity Bank, released recently on the Nigerian Stock Exchange (NGX), the earning assets of the financial institution increased by 19.1 percent from the N2.22 trillion recorded in the final quarter of 2021.
The bank’s earning assets make up a significant portion of the its total assets, which stood at N3.989 trillion in 2022, up by 21.76 percent from N3.276 trillion in 2021.
While Fidelity’s net loan balance doubled to N2.116 trillion in 2022 from N1.66 trillion in 2021; deposits from customers increased to N2.580 trillion in 2022 relative to the N2.024 trillion recorded in 2021.
Ultimately, the bank recorded impressive increases across key balance sheet lines in the 2022 financial year, pointing to its strong growth strategy and revenue drive.
Fidelity Bank doubled its profit before tax (PBT) in 2022.
The PBT of N53.7 billion represents a 112.9 percent annual growth — a feat celebrated by Nneka Onyeali-Ikpe, the bank’s managing director and chief executive officer (MD/CEO), as a validation of the growth strategy.
There was also a 34.4 percent growth in year-on-year (YoY) gross earnings to N337.1 billion.
This was driven by a 45.2 percent growth in interest and similar income to N295.6 billion, in itself led by a combination of improved yield on earning assets.
In the statement, the firm’s earnings per share (EPS), basic and diluted, increased to 161 kobo in 2022 from 80 kobo in 2021.
Although there was a liquidity ratio of 39.6 percent and capital adequacy ratio (CAR) at 18.1 percent, compared to the minimum regulatory requirement of 30 percent and 15 percent respectively; Fidelity Bank has always maintained high asset quality and a healthy balance sheet with its regulatory ratios well above the minimum regulatory thresholds.
The bank’s shares have been on investment analysts stock picks. The share price at N5.3 had reached a 52-week high of N6.03 as against a 52-week low of N2.87.
The shares price has yielded about 21.8 percent return this year, confirming analysts buy rating as a value stock.
Fidelity Bank has received several recognitions for its product innovation and sound corporate governance standards. This year, the organisation was named the best private bank in Nigeria and best private bank digital solutions for clients in Africa by the Global Finance’s World’s Best Private Banks Awards.
It was also named the best payment solution provider, and the best banking CEO Nigeria 2023, at this year’s edition of the Global Banking and Finance Awards.
