Fidelity Bank Plc Achieves Record N385.215bn Pre-Tax Profit in 2024

Fidelity Bank PLC announced an before stellar tax of 385.215 billion Nairas for the year 2024 enclosed on December 31, marking a remarkable increase of 210.01% in annual sliding (Yoy) which highlights the resilience and dynamism of the Nigeria financial sector.

Despite a 1333 billion nairas manna tax perceived by the government, the post-tax of the bank jumped from 179.63% to 278.106 billion Nairas, testifying to its operational force in the face of the persistent economic challenges of Nigeria. According to audited financial statements, gross profits increased by 87.72% to 1,043 Billion de Nairas, basic operational income leading approximately 97% of total turnover – a performance that highlights the central role of Fidelity in the country’s banking sector.

The Board of Directors proposed a final dividend of N1.25K by action, an increase compared to N0.85K in 2023, payable on April 29, 2025. Combined with a provisional dividend of 0.85K N0.85K already discouraged, which leads to a total dividend for 2024 to N20K by action, taken from a kept.

The financial performance of Fidelity in 2024 is a microcosm of the broader growth narrative which takes place within the financial industry of Nigeria, which has demonstrated remarkable burst, defying the country’s economic winds.

With an average inflation of 33.5% in 2024, a depreciation in Nairas which eroded the purchasing power and the central bank of Nigeria (CBN) of hiking of interest rates five times to a reference of 27.50%, the banks sailed on a difficult economic ground. However, Fidelity and his peers have transformed these challenges into opportunities, capitalizing on high interest rates to increase loans income, collect exchange gains from currency adjustments and take advantage of digital platforms to improve efficiency and costs based on costs.

Bank’s gross benefits of 1.043 Billion de Nairas reflect a jump of 87.72% in annual sliding, mainly fueled by an increase of 106.85% of interest income to 950.588 billion nairas. The costs of interest increased by 76.11% to 320.818 billion, driven by an increase of 56% of customer deposits (212.7 billion Nairas), but the interest ratio of the bank’s interest / income of the bank improved at 33.8% against 39.6% in 2023, expanding its margin of interest.

This led to a net interest income of 629.770 billion Nairas, up 127.05% in annual sliding. The costs of loss of credit, a persistent concern for Nigerian banks in a risky loan environment, decreased by 16.30% to 56.441 billion Nairas, with 91.47% (N51.63 billion) linked to loans and advances – 73.46% were classified under the loss of expected credibility (ECL) significant. However, net interest income after credit loss increased from 173.11% to 573.329 billion Nairas, reinforced by net costs and commission income of 70.312 billion Nairas.

Commission costs and income increased by 57.97% to 78.355 billion Nairas, powered by commission and credit fees (9.47 billion Nairas), ATM charges (6.4 billion Nairas) and commissions on travelers and foreign bills (6.9 billion Nairas).

The recent launch of the bank of “Fidelity Send”, a real-time payment platform supplied by Mastercard, has further improved its income-based income, offering secure and rapid transfers while generating a regular reduction for loyalty. The costs and commission costs, on the other hand, fell from 31.91% to 8.043 billion Nairas, amplifying the net contribution to profits. Exchange revaluation gains, however, fell sharply from 73.43% to 11.716 billion Nairas, reflecting the volatility of the Nigeria Forex market after the evaluation.

Upon balance sheet, loans and advances to customers increased by 41.87% to 4.387 billions, while cash and cash equivalents almost doubled, increasing from 94.26% to 707.450 billion nairas. Total assets increased by 41.49% to 8.822 Billions of Nairas, and customer deposits inflated by 47.88% to 5.937 Billions of Nairas, adding N1.922 billion Nairas to new deposits.

The bank has also raised 352.567 billion debt swimming, strengthening its liquidity. Shareholder funds have doubled, increasing from 105.32% to 897.874 billion Nairas, driven by an increase of 133.58% of the actions capital and bonus accounts to 305.55 billion Nairas. This growth in capital positions loyalty to meet the minimum capital requirements of 500 billion NAIRAS of the CBN for commercial banks. On February 7, 2025, the Bank announced the success of its public offer and its issue of rights, with plans to return to the market signaling a more in -depth ambition.

The structure of Fidelity’s profits remained strongly dependent on interest income, which represented 91% of total income. Loans and advances to customers contributed to 66%, although their share has dropped slightly, while investments in securities increased to 17.19%, the portfolio extending to 1.55 Billion de Nairas – an increase of 733.544 billion nairas. This change highlights Fidelity’s strategic evolution towards titles as a buffer against loan risks. Action profit increased by 113.83% to N6.65, strengthening the bank’s capacity to reward investors.

This performance is not an aberrant value but part of a broader trend in profitability in the banking sector of Nigeria in 2024, defying economic adversity.

Zenith Bank PLC declared a benefit before tax of 1.33 Billion de Nairas, an increase of 67% in annual sliding, with a gross benefit up 86% to 3.97 Billions of Nairas and a total dividend of 4.00 n per share (excluding provisional payments). Guaranty Trust Holding Company Plc (GTCO) posted a record profit of 1 Billion after tax, joining Zenith as the only bank to cross the Billion births, pulled by an increase of 207% in annual sliding in profit before tax at 1.003 billion Nairas in the first half.

United Bank for Africa (UBA) PLC recorded a profit before tax of 803.7 billion Nairas, up 6% in annual shift, with a profit after tax of 766.5 billion nairas – a level of all time – on a gross profit of 3.19 Billions of Nairas, an increase of 54% in annual sliding. ECOBANK Transnational Incorporated (ETI) announced $ 2 billion in revenues and $ 333 million in tax profits, equivalent to around 708.54 billion profits before tax at current rates, up 170% in annual shift. FBN Holdings PLC declared 610.86 billion N in a profit before tax, a gain of 128% in annual sliding, while Accece Holdings PLC declared 348.9 billion Nairas in the first half, an increase of 108.2%.

Collectively, these results highlight the capacity of the Nigerian financial industry to prosper in the midst of macroeconomic turbulence. The total asset of the sector crossed 100 Billions of Nairas in 2023, and the growth of 2024 suggests that this ascending trajectory persists, driven by the mobilization of deposits and the increases in strategic capital.

However, stadium loan disorders point out the concerns of the quality of assets and inflationary pressures could erode the purchasing power of consumers, to reduce the demand for loans. The strict monetary position of the CBN, aimed at taming inflation of 33.5%, increased borrowing costs, which could lead to margins if the deposit costs increase more.