FIDELITY BANK : QUARTER 2 - FINANCIAL STATEMENT FOR 2023

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FIDELITY BANK PLC

CONDENSED UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2023

FIDELITY BANK PLC

Statement Of Directors' Responsibilities In Relation To The Preparation Of The Financial Statements For the period ended 30 June 2023

In accordance with the provisions of Sections 334 and 335 of the Companies and Allied Matters Act (CAMA) 2020, Sections 24 and 28 of the Banks and Other Financial Institutions Act (BOFIA) 2020, and the Financial Reporting Council Act No. 6, 2011, the Directors are responsible for the preparation of financial statements which give a true and fair view of the state of affairs of the Bank, and of the financial performance for the period. The responsibilities include ensuring that:

1. Appropriate internal controls are established both to safeguard the assets of the Bank and to prevent and detect fraud and other irregularities.
2. The Bank keeps accounting records which disclose with reasonable accuracy the financial position of the Bank and which ensure that the financial statements comply with requirements of International Financial Reporting Standards and the Companies and Allied Matters Act (CAMA) 2020, Banks and Other Financial Institutions Act (BOFIA) 2020, the Financial Reporting Council Act No. 6, 2011, Revised Prudential Guidelines and relevant circulars issued by the Central Bank of Nigeria.
3. The Bank has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgments and estimates, and that all applicable accounting standards have been followed; and
4. It is appropriate for the financial statements to be prepared on a going concern basis unless it is presumed that the Bank will not continue in business.

The Directors accept responsibility for the financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates in conformity with International Financial Reporting Standards, the requirements of the Companies and Allied Matters Act, CAP C20 (CAMA ) 2020 , Banks and Other Financial Institutions Act (BOFIA ) 2020 , the Financial Reporting Council Act No. 6, 2011, Revised Prudential Guidelines, and relevant circulars issued by the Central Bank of Nigeria.

The Directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Bank and its financial performance for the period under review

The Directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of the financial statements, as well as adequate systems of financial control.

Nothing has come to the attention of the Directors to indicate that the Bank will not remain a going concern for at least Six months from the date of this statement.

Signed on behalf of the Directors by:

Date: July 17, 2023

Kevin Ugwuoke	`		Nneka Onyeali-Ikpe
Executive Director			Managing Director/ Chief Executive Off
FRC/2020/003/00000022290		FRC/2013/NBA/00000016998

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Statement Of Corporate Responsibility For The Preparation Of The Financial Statements

For the period ended 31 March 2023

In line with the provision of S. 405 of CAMA 2020, the Chief Executive Officer and Chief Financial officer of Fidelity Bank Plc have reviewed the Financial Statement of the bank for the period ended March 31, 2023 and accept responsibility for the financial and other information within the report based on the following:

i

The financial statements do not contain any untrue statement of material fact or omit to state a material fact, which would make the statement misleading.

1. The financial statements and all other financial information included in the statements fairly present, in all material respects, the financial condition and result of operation of the bank as of and for the period ended March 31, 2023

iii

The bank's internal controls were evaluated within 90 days of the financial reporting date and are effective as of 31 March 2023

1. The bank's internal Controls has been designed to ensure that all material information relating to the bank has been provided.

v

That we have disclosed to the bank's Auditors and the Audit Committee that there are no significant deficiencies in the design or operation of the bank's internal controls which could adversely affect the bank's ability to record, process, summaries and report financial data, and have discussed with the auditors any weaknesses in internal controls observed in the cause of the Audit; And that there is no fraud involving management or other employees which could have any significant role in the bank's internal control

vi

There is no significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of this audit, including any corrective actions with regard to any observed deficiencies and material weaknesses

Signed on behalf of the Directors by:

Date: 17 July 2023

Victor Abejegah		Nneka Onyeali-Ikpe
Chief Financial Officer		Managing Director/Chief Executive Officer
FRC/2013/ICAN/00000001733		FRC/2013/NBA/00000016998

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FIDELITY BANK PLC

Statement Of Profit Or Loss And Other Comprehensive Income for the period ended 30 June 2023

		Q2 2023	Q2 2022	30 June 2023	30 June 2022
		N'million	N'million	N'million	N'million
	Notes
Gross Earnings		145,962	84,508	247,102	155,840
Interest and similar income using effective interest rate method	6	104,420	66,971	190,423	127,343
Other interest and similar income	12.1	(3,729)	8,209	-518	9,877
Interest and similar expense using effective interest rate method	7	(45,497)	(29,615)	(82,140)	(61,610)
Net interest income		55,194	45,565	107,765	75,610
Credit loss expense	8	(13,261)	(1,103)	(16,781)	(1,308)
Net interest income after credit loss expense		41,934	44,462	90,983	74,302
Fee and commission income	9	12,247	8,161	24,148	16,084
Fee and commission expense	9	(3,889)	(2,927)	(7,665)	-6,026
Net losses on derecognition on financial assets measured at amortised cost	10	-	-	-	-
Other operating income	11	33,024	1,167	33,049	2,536
Net gains from financial assets at fair value through profit or loss	12	5,433	433	5,095	531
Personnel expenses	13	(9,402)	(9,729)	-17,287	(15,229)
Depreciation and amortisation	14	(1,327)	(1,680)	-3,237	(3,364)
Other operating expenses	15	(34,439)	(24,546)	-63,896	(43,168)
Profit before income tax		43,580	15,341	61,191	25,665
Income tax expense	16	(5,562)	(2,013)	(7,894)	(2,823)
Profit For The Period		38,019	13,328	53,297	22,842
Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss
Fair value gains on equity instruments at fair value through other comprehensive
income**	24.3	0	0	0
Total items that will not be reclassified subsequently to profit or loss		0	0	0
Items that will be reclassified subsequently to profit or loss
Debt instruments at fair value through other comprehensive income**:
- Net change in fair value during the period		17,147	(18)	14,614	(229)
- Changes in allowance for expected credit losses		17	47	33	194
- Reclassification adjustments to profit or loss	17	250	(46)	1,023	411
Net losses on debt instruments at fair value through other comprehensive income		17,414	(16)	15,670	377
Total items that will be reclassified subsequently to profit or loss		17,414	(16)	15,670	377
Other comprehensive (loss)/income for the period, net of tax		17,414	(16)	15,670	377
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX		55,432	13,311	68,968	23,219
Earnings per share
Basic and diluted (in kobo)	18	131	46	184	79

** Income from these instruments is exempted from witholding tax

The accompanying notes to the financial statements are an integral part of these financial statements.

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FIDELITY BANK PLC
Statement Of Financial Position
as at 30 June 2023
				31 December
		30 June 2023	30 June 2022	2022
		N'million	N'million	N'million
ASSETS	Note
Cash and Cash equivalents	19	490,014	276,071	300,345
Restricted balances with central bank	20	938,917	700,737	863,090
Loans and advances to customers	22	2,650,178	1,913,352	2,116,212
Derivative financial assets	23	8,480	6,805	4,778
Investment securities:
Financial assets at fair value through profit or loss	24.1	26,106	13,917	2,036
Debt instruments at fair value through other
comprehensive income	24.2	179,969	131,702	28,696
Equity instruments at fair value through other
comprehensive income	24.3	27,569	27,117	27,560
Debt instrument at amortised cost	24.4	475,671	484,126	479,592
Deferred tax Assets	28.1	5,306	-	5,306
Other assets	29	200,795	73,170	112,915
Right of Use Assets	26	1,746	1,433	1,799
Property, plant and equipment	25	42,424	40,699	42,657
Intangible assets	27	5,029	3,273	4,023
TOTAL ASSETS		5,052,206	3,672,401	3,989,009
LIABILITIES
Deposits from customers	30	3,178,653	2,269,963	2,580,597
Derivative financial liabilities	23	17,496	425	1,208
Current income tax payable	16	10,216	5,296	8,446
Deferred tax liabilities	28.2	5,629	-	5,629
Other liabilities	31	1,001,795	655,615	815,407
Provision	32	2,501	5,038	1,896
Debts issued and other borrowed funds	33	451,469	425,214	261,466
TOTAL LIABILITIES		4,667,759	3,361,551	3,674,649
EQUITY
Share capital	34	16,000	14,481	14,481
Share premium	35	113,705	101,272	101,272
Retained earnings	35	85,380	81,423	44,883
Other equity reserves:
Statutory reserve	35	51,352	44,343	51,352
Small scale investment reserve (SSI)	35	764	764	764
Non-distributable regulatory reserve (NDR)	35	62,144	26,438	62,144
Fair value reserve	35	45,655	35,021	30,019
AGSMEIS reserve	35	9,445	7,109	9,445
Total equity		384,446	310,851	314,360
TOTAL LIABILITIES AND EQUITY		5,052,205	3,672,402	3,989,009
		0	-0	0

The accompanying notes to the financial statements are an integral part of these financial statements.

The financial statements were approved by the Board of Directors on 17 July 2023 and signed on its behalf by:

_______________________________	_________________________________
Mustafa Chike-Obi	Nneka Onyeali-Ikpe
Chairman	Managing Director/ Chief Executive Officer
FRC/2013/IODN/00000004048	FRC/2017/NBA/00000016998
	________________________________________
	Victor Abejegah
	Chief Financial Officer
	FRC/2013/ICAN/00000001733

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