Fidelity Bank (FIDELITYBK) Q4 2023 earnings summary

Executive summary

• FY23 gross earnings rose 64.9% to N555.8bn and PBT increased 131.5% to N124.3bn, supported by higher interest and non-interest income.

• Customer deposits grew 55.6% to N4,014.8bn and net loans rose 46.1% to N3,092.4bn; NPL ratio increased to 3.5%.

Financial highlights

• Operating income increased 114.9% to N386.6bn; net interest income rose 81.6% to N277.4bn and net fee income reached N109.3bn.

• FX income climbed 744.6% to N49.8bn; non-interest revenue excluding gains from financial instruments grew 132.2% to N96.3bn.

• Operating expenses rose 61.4% to N194.9bn, while net impairment losses increased to N67.4bn from N5.4bn.

• Cost-to-income ratio improved to 50.4% from 67.1%, as revenue growth outpaced expense growth.

Outlook and guidance

• FY24 PBT target is N170bn; loan growth guidance is 10%-15%, deposit growth 15%-20%, and NIM 8.0%-8.5%.

• FY24 targets include CIR below 65%, cost of risk at 2.0%, NPL ratio below 5%, and tax rate of 20%.

• Management plans to stem FidBank UK losses and return the subsidiary to sustainable growth and long-term profitability in 2024.