By Tony Obiechina, Abuja
Fidelity Bank Plc recorded excellent performance in 2023, growing its profit after tax by 116.79 per cent to N101.29bn but the lender also piled up debts during the year under review.
The bank’s revenue increased by 64.3 per cent from N337bn in 2022 toN553.8bn in 2023, an analysis made of the company’s financial statement for 2023 has revealed.
The lender’s total assets rose during the period from N3.9tn in 2022 to N6.2tn in the full year of 2023 while the company sits on N383.4bn cash and cash equivalent.
But the lender has piled up N557.028bn debt by the end of 2023 as the group’s liability rose to N5.79tn which is a 57.6 per cent surge from the N3.67tn liability in 2022.
The company’s debt profile saw a surge from N261.46bn debts as of 2022 to N577bn debts incurred in the full year of 2023.
A breakdown of the debts reveals that the amount of $400m Euro Bond issued has risen to N382.42bn in 2023 from N178.2bn which was the amortised cost held in 2022.
The bank took a fresh loan from Rand Merchant Bank amounting to $50m which translates to N48.8bn amortized cost as of December 2023.
The amount of N42.17bn rose from the N41.3.78bn in 2022 and it represents the amortised cost of 10-Year N41.2bn Subordinated Unsecured Series I Bonds issued at 8.5 per cent. READ ALSO:
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The bank issued the bond to support the bank’s SME and Retail Banking Businesses as well as its Information and Technology Infrastructure.
The lender also borrowed $23m from Bank One Mauritius which will mature on March 27, 2024 at an interest rate of 10.97 per cent ($15m) and 10.98 per cent ($8m) per annum respectively.
