Fidelity Bank’s recently released its FY 2023 audited numbers showed significant y/y growth in Pre-tax profit, driven by significant growths in both Interest and Non-Interest Income. Interest Income grew 55.5% y/y, driven by expansion in earning assets and improved yields on assets. Net Loans to Customers were up 46.1% in December 2023 compared with the December 2022 position. Growth in Non-Interest Income on the other hand, was driven by foreign currency revaluation gains, trading gains and growth in several Fee Income lines.
Interest Expense grew moderately, up 27.5% y/y. However, the average funding cost dropped by marginally down 20bps to 4.4% due to an improved funding mix as low-cost deposits made up 97.4% of total deposits in December 2023 compared with 83.6% in December 2022. Overall, Net Interest Income grew strongly, up 81.6% y/y to N277.4bn for FY 2023 from N152.7bn in 2022, bringing Net Interest Margin (NIM) to 8.1% for FY 2023 from 6.3% in 2022.
