FIDELITY BANK : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

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FIDELITY BANK PLC

CONDENCED UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 SEPTEMBER 2023

FIDELITY BANK PLC

Statement Of Directors' Responsibilities In Relation To The Preparation Of The Financial Statements For the period ended 30 September 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 90 days from the date of this statement.

Signed on behalf of the Directors by:

Date: October 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 30 September 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 September 30, 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 September 30, 2023

iii

The bank's internal controls were evaluated within 90 days of the financial reporting date and are effective as of 30 September 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: 30 October 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 September 2023

		Q3 2023	Q3 2022	30 Sept 2023	30 Sept 2022
		N'million	N'million	N'million	N'million
	Notes
Gross Earnings		141,693	87,050	388,794	241,894
Interest and similar income using effective interest rate method	6	116,161	71,958	306,584	198,306
Other interest and similar income	12.1	18,754	2,169	18,236	12,046
Interest and similar expense using effective interest rate method	7	(47,785)	(37,915)	(129,862)	(98,502)
Net interest income		87,129	36,212	194,957	111,850
Credit loss expense	8	(12,260)	(1,700)	(32,182)	(3,691)
Net interest income after credit loss expense		74,869	34,512	162,775	108,159
Fee and commission income	9	12,286	8,958	36,433	25,042
Fee and commission expense	9	(1,981)	(3,421)	(9,646)	(9,447)
Net losses on derecognition on financial assets measured at amortised cost	10	-	-	-	-
Other operating income	11	(5,508)	3,965	27,542	6,500
Net gains/(losses) from financial assets at fair value through profit or loss	12	(4,251)	(1,670)	19,197	(804)
Personnel expenses	13	(13,020)	(6,924)	(30,307)	(22,154)
Depreciation and amortisation	14	(1,804)	(1,603)	(5,030)	(4,982)
Other operating expenses	15	(25,934)	(21,103)	(89,971)	(64,522)
Profit before income tax		34,658	12,714	110,992	37,792
Income tax expense	16	(4,900)	(1,062)	(19,239)	(2,834)
Profit For The Period		29,758	11,652	91,753	34,959
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	9,791	0	9,791	619
Total items that will not be reclassified subsequently to profit or loss		9,791		9,791
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		(14,176)	64	439	(165)
- Changes in allowance for expected credit losses		197	105	230	93
- Reclassification adjustments to profit or loss	17	4	(1,519)	1,027	(1,108)
Net losses on debt instruments at fair value through other comprehensive income		(13,975)	(1,350)	1,696	(1,180)
Total items that will be reclassified subsequently to profit or loss		(13,975)	(1,350)	1,696	(1,180)
Other comprehensive (loss)/income for the period, net of tax		(4,184)	(1,350)	11,487	(1,180)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX		25,575	10,302	103,240	33,779
Earnings per share
Basic and diluted (in kobo)	18	93	40	287	121

** 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 September 2023
				31 December
		30 Sept 2023	30 Sept 2022	2022
		N'million	N'million	N'million
ASSETS	Note
Cash and Cash equivalents	19	568,708	316,765	300,345
Restricted balances with central bank	20	983,414	741,695	863,090
Loans and advances to customers	22	2,654,909	1,989,288	2,116,212
Derivative financial assets	23	34,854	215	4,778
Investment securities:
Financial assets at fair value through profit or loss	24.1	20,680	4,489	2,036
Debt instruments at fair value through other
comprehensive income	24.2	153,892	67,406	28,696
Equity instruments at fair value through other
comprehensive income	24.3	37,360	27,736	27,560
Debt instrument at amortised cost	24.4	582,796	499,696	479,592
Deferred tax Assets	28.1	5,306	5,306	5,306
Other assets	29	319,937	99,227	112,915
Right of Use Assets	26	1,814	1,377	1,799
Property, plant and equipment	25	44,747	42,864	42,657
Intangible assets	27	5,238	3,715	4,023
TOTAL ASSETS		5,413,655	3,799,779	3,989,009
LIABILITIES
Deposits from customers	30	3,439,857	2,294,670	2,580,597
Derivative financial liabilities	23	24,697	305	1,208
Current income tax payable	16	21,560	5,026	8,446
Deferred tax liabilities	28.2	5,629	5,306	5,629
Other liabilities	31	1,032,535	724,586	815,407
Provision	32	2,669	5,576	1,896
Debts issued and other borrowed funds	33	475,956	445,176	261,466

TOTAL LIABILITIES
EQUITY
Share capital	34
Share premium	35
Retained earnings	35
Other equity reserves:
Statutory reserve	35
Small scale investment reserve (SSI)	35
Non-distributable regulatory reserve (NDR)	35
Fair value reserve	35
AGSMEIS reserve	35
Total equity

TOTAL LIABILITIES AND EQUITY

5,002,903	3,480,645	3,674,649
16,000	14,481	14,481
113,705	101,272	101,272
115,836	76,945	44,883
51,352	47,839	51,352
764	764	764
62,144	35,475	62,144
41,504	34,083	30,019
9,445	8,274	9,445
410,752	319,134	314,360
5,413,655	3,799,778	3,989,009

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 30 October 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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FIDELITY BANK PLC
Statement of Changes In Equity
for the period ended 30 September 2023
						Non-
					Small scale	distributable
	Share	Share	Retained	Statutory	investment	regulatory	Fair value AGSMEIS	Total
	capital	premium	earnings	reserve	reserve	reserve	reserve	reserve	equity
	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million
Balance at 1 January 2023	14,481	101,272	44,883	51,352	764	62,144	30,017	9,445	314,360
Proceed from issue of shares	1,519	12,433	-	-	-	-	-	-	13,952
Profit for the period	-	-	91,753	-	-	-	-	-	91,753
Other comprehensive income						-	-	-	-
- Net change in fair value during the period	-	-	-	-	-	-	-	-	-
Fair value gains on equity instruments at fair value through
other comprehensive income**	-	-	-	-	-	-	9,791	-	9,791
Net change in fair value of debt instrument at FVOCI							439		439
- Changes in allowance for expected credit losses	-	-	-	-	-	-	230	-	230
- Reclassification adjustments to profit or loss	-	-	-	-	-	-	1,027	-	1,027
Total comprehensive income for the year	-	-	91,753	-	-	-	11,487	-	103,240
Dividends paid	-	-	(20,800)	-	-	-	-	-	(20,800)
Transfers between reserves (Note 35) & (Note 43)	-	-	-	-		-	-	-	-
At 30 September 2023	16,000	113,705	115,836	51,352	764	62,144	41,504	9,445	410,752
						Non-
Statement of changes in equity for the year ended 30 September					Small scale	distributable		AGSMEI
2022	Share	Share	Retained	Statutory	investment	regulatory	Fair value	S	Total
	capital	premium	earnings	reserve	reserve	reserve	reserve	reserve	equity
	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million
Balance at 1 January 2022	14,481	101,272	66,700	39,006	764	6,365	39,615	5,330	273,533
Profit for the period	-	-	26,512	-	-	-	-	-	26,512
Other comprehensive income							-	-
- Net change in fair value during the year	-	-	-	-	-	-	(10,043)	-	(10,043)
Fair value gains on equity instruments at fair value through
other comprehensive income**	-	-	-	-	-	-	2,565	-	2,565
- Changes in allowance for expected credit losses	-	-	-	-	-	-	(683)	-	(683)
- Reclassification adjustments to profit or loss	-	-	-	-	-	-	(2,860)	-	(2,860)
Total comprehensive income for the year	-	-	26,512	-	-	-	(11,022)	-	15,490
Dividends paid	-	-	(6,372)	-	-	-	-		(10,137)
Transfers between reserves (Note 35) & (Note 43)	-	-	(33,131)	2,896		30,235	-	-	-
At 30 September 2022	14,481	101,272	53,709	41,902	764	36,600	28,593	5,330	310,851

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

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FIDELITY BANK PLC

Statement Of Cash Flows

for the period ended 30 September 2023		30 Sept	30 Sept	30 Dec
		2023	2022	2022
		N'million	N'million
	Note
Operating Activities
Cash flows from /(used in) operations	36	327,485	76,992	178,614
Interest received		242,456	201,491	250,701
Interest paid		(145,276)	(77,244)	(130,016)
Income tax paid	16c	(6,013)	(1,707)	(1,707)
Net cash flows from /(used in) operating activities		418,652	199,533	297,592
Investing activities
Purchase of property, plant and equipment	25	(6,696)	(6,334)	(7,124)
Proceeds from sale of property plant and equipment		29	156	118
Purchase of intangible assets	27	(2,425)	(1,489)	(2,246)
Purchase of debt Instruments at FVOCI	24.6.1	(156,212)	(47,687)	(27,028)
Purchase of debt Instruments at amortised cost		(263,206)	(214,216)	(245,918)
Redemption of financial assets at amortised cost	24.6.2	184,238	162,860	241,715
Redemption of debt financial assets at FVOCI	24.6.1	56,825	78,922	77,817
Purchase of equity instruments at FVOCI		0	-909	-909
Dividend received	10	1,553	370	397
Net cash flows (used in) /from investing activities		(185,894)	(28,327)	36,822
Financing activities
Dividends paid		(20,800)	(13,033)	(13,033)
Unclaimed dividend		7	1	-429
Acquisition Right of Use (ROU) Assets	26	(463)	(504)	(535)
Proceeds of debts issued and other borrowed funds	33	86,428	0	0
Payment of interest portion of debts issued and other borrowed funds	33	(685)	(21,616)	(28,625)
Repayment of principal portion of debts issued and other borrowed funds	33	(21,330)	(40,898)	(213,379)
Net cash flows from / (used in) financing activities		43,158	(76,050)	(256,001)
Net decrease / increase in cash and cash equivalents		275,916	95,156	78,413
Net foreign exchange difference on cash and cash equivalents	11	(7,170)	2,356	2,680
Cash and cash equivalents as at 1 January	19	300,345	219,253	219,252
Cash and cash equivalents as at 30 September	19	569,091	316,765	300,345

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

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FIDELITY BANK PLC

Notes To The Financial Statements:

1. Corporate Information
   These financial statements are for Fidelity Bank Plc (the "Bank"), a company incorporated in Nigeria on 19 November 1987.The registered office address of the Bank is at Fidelity Place, 1 Fidelity Bank Close Off Kofo Abayomi Street, Victoria-Island, Lagos, Nigeria.
   The principal activity of the Bank is the provision of banking and other financial services to corporate and individual customers. Fidelity Bank Plc provides a full range of financial services including investment, commercial and retail banking.
2. Summary of accounting policies

2.1 Introduction to summary of accounti

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The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to the period presented, unless otherwise stated.

1. Basis of Preparation
   The Bank's financial statements for the period ended 30 September 2023 have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and in the manner required by the Companies and Allied Matters Act of Nigeria , the Financial Reporting Council Act of Nigeria , Banks and Other Financial Institutions Act of Nigeria and relevant Central Bank of Nigeria Circulars, and should be read in conjunction with the Bank's annual financial statements as at 31 December 2022.
   Additional information required by national regulations is included where appropriate.
   The financial statements comprise the statement of profit or loss and other comprehensive income, the statement of financial position, the statement of changes in equity, statement of cashflows, significant accounting policies and the notes to the financial statements.
   The financial statements have been prepared in accordance with the going concern principle under the historical cost convention, except for financial assets and financial liabilities measured at fair value.
   The financial statements are presented in Naira, which is the Bank's presentation currency. The figures shown in the financial statements are stated in Naira millions.
2. Changes in accounting policies and disclosures New and amended standards and interpretations.
   The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the preparation of the Bank's annual financial statements for the period ended 30 September 2023, except for the adoption of new standards effective as of 1 January 2022. The Bank has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

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FIDELITY BANK PLC

Notes To The Financial Statements:

1. IFRS 16 - Leases
2. 
   The amendment removes the illustration of the reimbursement of leasehold improvements.
3. IFRS 9 Financial Instruments
4. 
   The amendment clarifies that in applying the '10 per cent' test to assess whether to derecognise a financial liability, an entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other's behalf.
5. IAS 41 Agriculture
6. 
   The amendment removes the requirement in IAS 41 for entities to exclude cash flows for taxation when measuring fair value. This aligns the fair value measurement in IAS 41 with the requirements of IFRS 13 Fair Value Measurement to use internally consistent cash flows and discount rates and enables preparers to determine whether to use pre-tax or post-tax cash flows and discount rates for the most appropriate fair value measurement.
7. IFRS 1 First-time Adoption of International Financial Reporting Standards
8. 
   The amendment provides additional relief to a subsidiary which becomes a first-time adopter later than its parent in respect of accounting for cumulative translation differences. As a result of the amendment, a subsidiary that uses the exemption in IFRS 1:D16(a) can now also elect to measure cumulative translation differences for all foreign operations at the carrying amount that would be included in the parent's consolidated financial statements, based on the parent's date of transition to IFRS Accounting Standards, if no adjustments were made for consolidation procedures and for the effects of the business combination in which the parent acquired the subsidiary. A similar election is available to an associate or joint venture that uses the exemption in IFRS 1:D16(a).

2.2 Income Taxation

1. The tax expense for the period comprises current and deferred tax. Tax is recognised in arriving at profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

2. Current Income Tax
   The current income tax charge is calculated on the basis of the applicable tax laws enacted or substantively enacted at the reporting date in the respective jurisdiction.

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FIDELITY BANK PLC

Notes To The Financial Statements:

1. Deferred Income Tax
   Deferred income tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the reporting date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
   Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.
   Deferred income tax is provided on temporary differences arising from investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Bank and it is probable that the difference will not reverse in the foreseeable future.
   Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxables entities where there is an intention to settle the balance on a net basis.
   Deferred tax assets are recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised and reviewed at each reporting date , reduced to the extent that it is no longer probable that the related tax benefit will be realised. The Bank has applied caution by not recognising additional deferred tax assets which is not considered capable of recovery.

• IAS 12 - Deferred Tax related to Assets and Liabilities arising from a Single Transaction

The amendments to IAS 12 Income Taxes require companies to recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. They will typically apply to transactions such as leases of lessees and decommissioning obligations and will require the recognition of additional deferred tax assets and liabilities. The amendment should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, entities should recognise deferred tax assets (to the extent that it is probable that they can be utilised) and deferred tax liabilities at the beginning of the earliest comparative period for all deductible and taxable temporary differences associated with:

• right-of-useassets and lease liabilities, and
• decommissioning, restoration and similar liabilities, and the corresponding amounts recognised as part of the cost of the related assets. The cumulative effect of recognising these adjustments is recognised in retained earnings, or another component of equity, as appropriate. IAS 12 did not previously address how to account for the tax effects of on-balance sheet leases and similar transactions and various approaches were considered acceptable.

The effective date is 1 January 2023 . These amendments did not have any impact on the financial statements of the Bank in the period ,

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