Fidelity Bank is poised to join the elite ranks of global financial institutions, buoyed by investors’ unwavering confidence and resounding endorsement of its capital-raising endeavor. This strategic move aims to sustain the exceptional performance milestones achieved in the first half of 2023, as showcased in its H1’23 financial results.
The financial statements for H1’23, publicly disclosed on the Nigerian Exchange Group (NGX), revealed a remarkable 204.4 percent surge in Profit Before Tax (PBT) for the initial half of 2023, soaring to an impressive N76.3 billion. This surge was not an isolated triumph; it was accompanied by a positive performance across all financial metrics. These accomplishments reaffirm Fidelity Bank’s status as one of Nigeria’s most rapidly expanding and well-administered financial institutions.
During this period, Gross earnings witnessed a substantial uptick, surging by 59.6 percent to N247.1 billion, compared to N154.8 billion in June 2022. Profit After Tax (PAT) scaled to N61.9 billion, signifying a remarkable 166 percent growth from the corresponding period’s N23.3 billion. This translates to an Earnings per Share (EPS) of 194 kobo. The Bank’s Net Loans & Advances swelled by 25.1 percent, escalating from N2.1 trillion in December 2022 to N2.6 trillion in June 2023. This was paralleled by a 23.2 percent uptick in Customer Deposits, surging to N3.2 trillion from N2.6 trillion in December 2022.
Fidelity Bank’s balance sheet retained its robustness, exhibiting a 27.4 percent growth in Total Assets, expanding from N3.9 trillion in December 2022 to N5.1 trillion. Furthermore, the Bank maintained its non-performing loans at a low level, comfortably within regulatory thresholds at 3.24 percent, fortified by adequate coverage of 111 percent. Return on Equity (ROE) and Return on Assets (ROA) closed at 34.9 percent and 2.8 percent, respectively.
In light of this resounding success in H1’23, the bank’s board unanimously approved an interim dividend of 25 kobo per share, marking the second consecutive year of interim dividends. This move underscores Fidelity Bank’s commitment to providing shareholders with consistent and enduring value.
Nneka Onyeali-Ikpe, Managing Director/Chief Executive Officer of Fidelity Bank Plc, expressed her satisfaction with the bank’s performance, emphasizing the bank’s resilience and enduring strength. She reaffirmed the bank’s commitment to supporting individuals’ growth, fostering business prosperity, and empowering economies to thrive, despite the global economic challenges.
Fidelity Bank’s outstanding H1’23 results are the latest in a series of remarkable achievements. The bank’s stock was recently reclassified from a small-price stock to a medium-price stock by the NGX, underscoring its consistent impressive performance. Furthermore, the bank clinched the title of the company with the highest earnings per share on the NGX based on half-year financial figures for the second consecutive year.
Bolstered by its stellar performance, Fidelity Bank shareholders, at a virtual Extraordinary General Meeting (EGM), unanimously approved a capital-raising initiative, including a Public Offer for up to 10 billion Ordinary Shares and a Rights Issue of up to 3.2 billion Ordinary Shares. These offerings will be made available to both new and existing shareholders, reinforcing the bank’s growth and expansion strategy.
Chairman of Fidelity Bank Plc, Mustafa Chike-Obi, highlighted the bank’s robust growth trajectory and the need for additional capital to fuel profitability, domestic and international expansion, and the enhancement of its digital capabilities. He expressed confidence in the resolutions proposed, which aim to position the bank strategically for emerging business opportunities, long-term profitability, and competitive advantage, all while maximizing shareholder value.
Shareholders echoed their support for the bank’s leadership and the capital-raising initiative. Sir Sunny Nwosu, Chairman Emeritus of the Independent Shareholders Association of Nigeria (ISAN), encouraged fellow shareholders not to miss the opportunity to increase their holdings in Fidelity Bank, emphasizing the bank’s promising future.
Alhaji Faruk Umar, President of the Association for the Advancement of the Rights of Nigeria Shareholders, assured the bank of unwavering support from shareholders.
In conclusion, Mrs. Nneka Onyeali-Ikpe, Managing Director/Chief Executive Officer of Fidelity Bank Plc, pledged to uphold the commitment to deliver value to shareholders, leveraging technological platforms to ensure efficiency and expediency in the capital-raising exercise.
With aspirations to become one of Nigeria’s top five banks by 2025, Fidelity Bank has set its sights on global expansion, aiming to establish a presence in six countries within the next three years. This ambitious vision led to Fidelity Bank’s acquisition of the London unit of Union Bank of Nigeria Plc earlier this year, with ongoing negotiations for another acquisition slated for completion this year. The bank’s strategic intent is to broaden its footprint beyond Nigeria and compete effectively on a global scale, leveraging the significant growth opportunities in trade and corresponding banking roles, especially within Africa.
Trade within the continent is poised for a 52 percent growth over the next decade, according to the African Trade Policy Centre at the United Nations Economic Commission for Africa. Fidelity Bank intends to utilize the N13.8 billion raised in a private placement earlier this year to facilitate these acquisitions, alongside retained earnings. The bank’s private banking customers, seeking to conduct business and acquire properties in the UK and its environs, will benefit from enhanced support, contributing to both the bank’s and its customers’ growth prospects.
