In FY'24, we expect FIDELITYBK to post a PBT of N171.5 billion, representing a possible c.38.0% expansion from its FY'23 print. This earnings projection is in line with the bank's guidance of N170.0 billion and consistent with potential benefits from the high-interest rate environment. However, we remain cautious regarding the growth of non-interest revenue (NIR) due to the CBN's directive on Net Open Position (NOP), which could limit potential revaluation gains. Consequently, we see scope for a 26.4% decline in NIR, which could cap growth in operating income to 27.5% (vs 114.9% in the prior year). We also forecast the FY'24 cost-to-income ratio at 55.0% (+4.6 ppts YoY), with the impact of the OPEX increase likely to be notable in the ongoing financial year.
