Fidelity Bank reported its best quarterly performance since Q3’17, with Q4 2021 earnings leaping 62.1% to N11.6 billion.
The growth in earnings reflected a doubling in net interest income to N30 billion, supported by the 34.4% growth in interest income.
The gains on the interest income front more than compensated for a N3.1 billion loan loss charge and a 22.5% increase in operating expenses. Overall, the result implied an ROE and ROA of 13.7% and 1.3% (vs 10.5% and 1.1% respectively in FY’20).
For its Full Year 2021 unaudited result, there was an increase in earnings primarily driven by a 67.3% decline in impairment charges and a 38.0% jump in non-interest revenue (NIR).
The moderation in impairment charges was despite a 24.3% increase in gross loans and advances, implying a cost of risk of 0.32% vs 1.21% in FY’20.
Elsewhere, growth in non-interest revenue reflected the 51.6% increase in net fee and commission income, the 41.2% growth in FX gains, and the N5.2 billion loan loss recovery (vs N495 million in FY’20).