Fidelity Bank has said its gross earnings rose by 34.4 per cent YoY to N337.1bn in 2022 financial period, driven by 45.2 per cent growth in interest and similar income to N295.6bn.

It said this in a statement on Thursday on its 2022 audited financial statements released on the Nigerian bourse.

The increase in interest income was led by a combination of improved yield on earning assets and 19.1 per cent YoY expansion in earnings base to N2.64tn.

This led to a profit before tax of N53.7bn representing 112.9 per cent annual growth.

Commenting on the bank’s performance, the Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe, said, “We are happy to report another year of impressive double-digit growth across key income and balance sheet lines. This validates our growth strategy and capacity to deliver superior returns to shareholders.”

Further review showed that net interest income increased by 60.9 per cent YoY to N152.7bn.

The high yield environment had a positive impact on net interest margin, which increased to 6.4 per cent from 4.7 per cent in 2021FY while average funding cost inched up slightly to 4.6 per cent from 4.2 per cent.

Similarly, total deposits increased by 27.4 per cent to N2.58tn from N2.02tn in 2021FY, in line with the bank’s guidance for 2022FY published in its investor relations presentation.

The increase was driven by 43.1 per cent growth in low-cost deposits (Demand/savings/domiciliary), which resulted in improved margins.

Speaking on the contribution of foreign currency deposits to its financial performance, Onyeali-Ikpe noted, “FCY deposits increased by $597m (63.4 per cent YoY) to $1.5bn and now accounts for 27.5 per cent of total deposits from 19.7 per cent in 2021FY, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space.”

Historically, the statement said, Fidelity Bank had maintained high asset quality and a healthy balance sheet with its regulatory ratios well above the minimum regulatory thresholds.

It reported a liquidity ratio of 39.6 per cent and Capital Adequacy Ratio at 18.1 per cent compared to the minimum regulatory requirement of 30.0 per cent and 15.0 per cent respectively. Its non-performing loans ratio remained unchanged at 2.9 per cent for the year.