Fidelity bank, 5 other Tier-2 banks announce 39.1% increase in profit to N193.45bn

Aside from Unity Bank Plc with a decline in profit, Fidelity Bank Plc and four other banks reported 39.1 per cent in profit to N193.445billion in unaudited full year result and accounts for the period ended December 31, 2022 from N139.08billion reported in the full year ended December 31, 2021. 

Other Tier-2 banks investigated by Westernpost are: Wema Bank Plc, FCMB Group, Stanbic IBTC Holdings and Sterling Bank Plc.

Unity Bank reported 28 per cent increase in interest expenses to N29.64billion in 2022 and saw its profit after tax dropping by 57.5 per cent to N1.35billion in 2022 from N3.17billion reported in 2021.

FCMB Group reported the highest percentage increase in profit, while Stanbic IBTC Holdings leads others in value of profit generated in the period.

As FCMB reported 56 per cent increase in profit to N32.59billion in 2022 from N20.92billion in 2021, Stanbic IBTC Holdings reported N81.066billion profit in 2022, representing an increase of 43 per cent from N56.97billion reported in 2021. 

The six Tier-2 banks in the period under review announced N225.89 billion profit before tax in 2022, representing an increase of 43.9per cent from N156.97 billion reported in 2021 financial year.

The banking sector in 2022 was faced with a double-digit inflation rate that affected Interest and operating expenses. However, these Tier-2 banks depend on non-core banking income to boost profit.

Despite the challenging environment, the six banks reported N1.26trillion gross earnings in 2022, an increase of 40.7 per cent from N894.95 reported in 2021.

Fidelity Bank tops others in gross earnings when it reported N335. 9billion in 2022 from N250.77billion in 2021, followed by Stanbic IBTC Holdings that reported N287.87billion gross earnings in 2022 from N206.64billion in 2021.