Fidelity Bank: A Deep Dive into its 2024 Financial Success
By Azeez Disu
In a remarkable financial feat, Fidelity Bank Plc announced a staggering 210% growth in Profit Before Tax (PBT), reaching N385.2 billion for the financial year ending 2024. The results, disclosed in the Bank’s full-year Audited Financial Statements, indicate an impressive surge in Gross Earnings by 87.7% to N1,043.4 billion—an accomplishment that underscores the institution’s robust operational strategy and market competitiveness.
Key Factors Driving Growth
1. Interest Income Surge: A pivotal contributor to Fidelity Bank’s remarkable performance was a 106.9% increase in interest and similar income, which rose to N950.6 billion. This was primarily driven by a combination of enhanced yield on earnings assets and a significant 51.6% expansion in its earnings base, bringing it up to N6.3 trillion. The high-yield environment in 2024 proved favorable for the bank, leading to a 127.1% increase in net interest income to N629.8 billion.
2. Optimal Asset Management: The Bank’s strategic focus on maintaining asset yields above funding costs has been crucial. By sustaining a low-cost deposit profile at 92.6%, Fidelity Bank was able to increase its Net Interest Margin from 8.1% in FY 2023 to an impressive 12.0%, ultimately boosting profitability.
3. Customer Base Expansion: Fidelity Bank accelerated its market share in both corporate and retail segments. Customer deposits soared by 47.9%, from N4.0 trillion in FY 2023 to N5.9 trillion, with notable growth across all deposit types. In Retail Banking, savings deposits rose by 28.8% to N1.1 trillion, marking the tenth consecutive year of double-digit growth in this category.
4. Support for the Real Economy: Despite challenging economic conditions, Fidelity Bank increased its Net Loans & Advances from N3.1 trillion in FY 2023 to N4.4 trillion in FY 2024. This commitment to financing the real sector showcases the bank’s strategic alignment with national economic goals.
5. Strong Capital Base: Fidelity Bank successfully completed the first phase of its capital raising initiative in 2024, with both its Public Offer and Rights Issue being oversubscribed (by 237.92% and 137.73% respectively). This generated an influx of N175.9 billion in fresh capital, bolstering its Capital Adequacy Ratio to 23.5%. The bank plans to conclude the second phase by Q3 2025, reinforcing its position as a Tier 1 Bank in Nigeria.
Achievements and Future Outlook
Dr. Nneka Onyeali-Ikpe, Managing Director/CEO of Fidelity Bank, expressed delight at the financial results, which reflect substantial growth across key revenue lines and improved asset quality: “Our remarkable performance demonstrates our capacity to deliver superior returns to our shareholders.” The bank declared a total dividend of N2.10 per share for FY 2024, underlining its commitment to rewarding investors, with payments scheduled for April 29, 2025.
Fidelity Bank continues to serve over 9.1 million customers through its 251 business offices and various digital banking channels, boasting accolades that affirm its innovative approach, including multiple awards for excellence in digital transformation and investment banking.
As Fidelity Bank continues to leverage its strengths, the trajectory for the coming years looks promising, particularly as it strives to enhance its market presence and deliver exceptional value to shareholders and customers alike.