By Ken Ibenne
Fidelity Bank Plc, a Nigerian financial institution, had an increase in total assets that marked the greatest level in at least 13 years, according to data collated by The Paradise News.
The bank’s assets increased to N6.23 trillion last year from N3.98 trillion in 2022, per the most recent financial statement.
The lender’s growth in loans and advances to customers over the period, which increased by 46% to N3.09 trillion from N2.11 trillion, can be linked to the growth of its assets.
The items possessed by a bank that add value are known as bank assets; these items are typically more closely associated with financial assets and interest. The assets may include loans, investments, and tangible possessions.
A statement states that the discounted amount of projected future cash flows that are anticipated to be received is what the estimated fair value of loans and advances represents.
The depreciation that occurred in the second quarter of last year, according to Olumide Sole, research analyst at Vetiva Capital Management Limited, contributed to the rise in banks’ asset values.
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“The banks’ foreign currency liabilities and balance sheets were impacted by the devaluation, which benefited from the devaluation of the naira and resulted in an overall increase in their asset value when reported in naira,” he stated.
The bank’s loans to corporations and other groups climbed to N3.61 trillion from N2.12 trillion, according to a closer examination of its financial statement.
It increased its loans to private citizens from N66 billion to N76 billion. From N863 billion to N1.17 trillion, the banks’ restricted balances with the Central Bank of Nigeria increased.
The restricted balance consists of special cash reserves, which increased to N945 billion from N614 billion and N229 billion to N248 billion, respectively, and statutory reserve deposits with the CBN.
“The Bank cannot use mandatory reserve deposits for regular business activities. It is non-interest bearing and reflects a portion of the deposits made by the customers. While the special cash reserve represents special intervention funds held with the apex bank as a regulatory requirement,” the statement stated.
In a same line, the bank’s total liabilities rose from N3.67 trillion in 2022 to N5.79 trillion in 2023, a 57% increase.
The bank’s liabilities have increased as a result of deposits that its clients made in 2023.
Customer deposits increased from N2.5 trillion to N4 trillion. This sum includes the time, demand, and domiciliary savings of the clients as well as other expenses for the duration.
The bank’s book value of shareholders’ equity, which includes its retained earnings, share premium, and capital, increased from N161 billion in 2022 to N194 billion in 2023, a 20.5 percent increase.
Over the investigated periods, its comprehensive income rose from N42 billion to N129 billion.
The basic and diluted earnings per share of Fidelity Bank that are attributable to equity investors went up from N161.32 to N310.79.
