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Tag: Fidelity Bank

  • Fitch upgrades Fidelity Bank’s rating on strong fundamentals

    Fitch upgrades Fidelity Bank’s rating on strong fundamentals

    Fitch Ratings has revised the outlook on Fidelity Bank PLC’s LongTerm Issuer Default Rating (IDR) to Positive from Stable, while affirming the rating at ‘B-’.

    The credit rating agency has also affirmed Fidelity Bank’s National Long-Term Rating at ‘A(nga)’ with a Stable Outlook.

    In a statement released on Friday, Fitch said that the outlook revision reflects its, “expectations that the bank’s capitalisation will strengthen in the near term as a result of core capital issuances, including to meet the new paid-in capital requirement of N500 billion for banks with an international licence effective by end-1Q26.”

    According to the statement: “Fidelity’s IDRs are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR) of ‘b-’. The VR balances the concentration of operations in Nigeria’s challenging operating environment, very high credit concentration and high Stage 2 loans against a growing franchise, sound profitability metrics, good capital buffers and reasonable foreign-currency (FC) liquidity coverage.

    “Fidelity’s National Ratings are driven by its standalone creditworthiness. They balance a growing franchise and good capital buffers against weaker profitability than higher rated peers.”

    The rating agency said that Fidelity is Nigeria’s sixth-largest bank, as it accounted for   five per cent of domestic banking system assets at end-2023, adding that  strong balance-sheet growth in recent years has increased bank’s market shares and that it expects these to increase further but remain below those of the five largest banking groups.

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    Although it said that Fidelity Bank’s single-borrower credit concentration is high, Fitch said it expects concentration to moderate relative to capital due to capital raising.

    According to the agency,  Fidelity’s operating profit/risk-weighted assets (RWA) averaged 3.6% over the past four years,

     “Operating profit/RWAs improved to 6.6% in 2023 from 3.4% in 2022 owing to a wider net interest margin (NIM), large foreign-exchange revaluation gains that accompanied the naira devaluation and a declining RWA density. The metric increased further to 8.6% in 1Q24 (annualised) due to further NIM widening, strong fees and a continued reduction in the RWA density,” Fitch stated.

    The agency further said that while Fidelity’s total Capital Adequacy Ratio (end-1Q24: 16.3%; excluding unaudited profits) has a modest buffer over the 15% minimum requirement, it expects “capitalisation to strengthen materially in the near term owing to a rights issue due to be concluded in 2024 (equivalent to 650bp of RWAs at end-1Q24) and further capital issuances to meet the new paid-in capital requirement of N500 billion for banks with an international licence by end-1Q26.”

    On factors that could lead to negative rating action/downgrade, the agency said: “A sovereign downgrade could result in a downgrade of Fidelity’s VR and Long-Term IDR if Fitch believes that the direct and indirect effects of a sovereign default would be likely to have a sufficiently large effect on capitalisation and foreign-currency liquidity to undermine the bank’s viability. However, this is unlikely considering the Positive Outlook on Nigeria’s Long-Term IDRs.”

    It, however, said that while key reforms pursued by President Tinubu since he assumed office in May 2023, such as reducing the fuel subsidy and embracing liberalisation of the forex market, are positive for Nigeria’s creditworthiness and FX market liquidity, they “pose near-term macroeconomic challenges for the banking sector.”

  • Fidelity Bank launches N127.1b combined rights, public offer

    Fidelity Bank launches N127.1b combined rights, public offer

    • Recapitalisation’s first offers debut

    Fidelity Bank Plc yesterday completed all arrangements to raise N127.2 billion through a combined rights and public offer, in the first capital raising under the banking recapitalisation exercise mandated by the Central Bank of Nigeria (CBN).  

    Directors and professional advisers to Fidelity Bank signed off the offer documents at a signing ceremony at the bank’s headquarter yesterday in Lagos.

    The signing ceremony followed approvals from all regulators and shareholders and marked the end of all pre-offer processes, paving the way for the offers to open for public subscription.

    Fidelity Bank is offering a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share. The bank will also simultaneously be offering 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.

    The acceptance and application lists for the rights issue and public offer are expected to open on Thursday, June 20, 2024 and close on Monday, July 29, 2024.

    The rights circular for the issue, which contains a provisional allotment letter and the participation form, will be mailed directly to shareholders of the bank. Printed copies of the public offer prospectus can be obtained at the offices of Fidelity Bank and the issuing houses during the public offer application period.

    The combined offer is a part of the bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the CBN on March 28, 2024.

    The bank expects that the additional equity capital to support its efforts to drive sustained growth and diversification of earnings base.

    The bank’s shareholders had already approved the rights issue and public offer at the extra-ordinary general meeting held in August 2023.

    Read Also: Fidelity Bank outperforms banks, stock market with 507% gain in five years

    Managing Director, Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, yesterday said the net proceeds of the combined offer would be applied towards investment in information technology infrastructure, business and regional expansion, and investment in product distribution channels.

    Chief Executive, Stanbic IBTC Capital, Oladele Sotubo, the lead issuing house to the offer, commended the bank’s management team for their commitment towards executing the combined offer.

    He noted that the bank’s efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks were commendable.

    He expressed confidence that the offer would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs.

    Stanbic IBTC Capital is the lead issuing house to the combined offer. The joint issuing houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited.

    A recent review had shown that Fidelity Bank outperformed all major market indices for measuring returns at the Nigerian stock market, with the bank’s average annual return over the past five years twice the average return by the overall market and almost four times of average return in the banking sector.

    A review of official trading reports at the Nigerian stock market showed that investors in Fidelity Bank have earned more than 507 per cent in capital gains over the past five years, between May 31, 2019 and May 31, 2024

    Fidelity Bank’s share price rose by 507.14 per cent over the period, representing average annual capital gain of 101.43 per cent. This significantly exceeds all other major return benchmarks, including the banking sector.

    With 507 per cent capital gain in five years and average annual gain of more than 100 per cent, the return analysis implies that investment in Fidelity Bank is more attractive than other class of assets, including fixed-income securities such as government and corporate bonds; real estate investment and mutual funds among others.

    These returns underscore Fidelity Bank’s immense value as a stock for all times, helping investors to hedge against inflation while preserving significant long-term value.

    The high divisible nature of shares investment and high free float of Fidelity Bank, which makes the bank’s shares easily available, underline the bank as a most attractive investment option for all cadres of investors- small, medium and high networth; retail and institutional investors.  

    The All Share Index (ASI) – the common, value-based index that tracks all share prices at the Nigerian Exchange (NGX), which is widely regarded as Nigeria’s benchmark for equities market, recorded a five-year return of 219.61 per cent, an average annual return of 43.9 per cent.

    Contrary to the significantly above average performance of Fidelity Bank, the NGX Banking Index-which tracks the banking sector, doubled by 120.53 per cent over the five-year period, representing average annual return of 24.11 per cent, more than 77 percentage points below Fidelity Bank’s average return.

    Two other major price indices- the NGX 30 Index and NGX Main Board Index, recorded five-year cumulative return of 185.73 per cent and 265.6 per cent respectively, representing average annual gain of 37.15 per cent and 53.1 per cent respectively.

    The NGX 30 Index tracks share prices of the 30 largest companies at the stock market while the NGX Main Board Index represents the largest and most diversified group of listed companies at the stock exchange. Fidelity Bank is quoted on the main board, like most other major banks and companies at the stock market.

    The average annual return of 101.43 per cent underlines that Fidelity Bank provides substantial return for investors, even where such investors had borrowed money at the ruling interest rate and the invested fund was adjusted for impact of inflation rate.

    Nigeria’s inflation rate peaked at a high of 33.69 per cent in April 2024 while the Central Bank of Nigeria (CBN)’s Monetary Policy Committee (MPC) recently increased the Monetary Policy Rate (MPR), otherwise known as benchmark interest rate, to 26.25 per cent.

    Fidelity Bank’s share price, which closed May 31, 2019 at N1.68 per share, rose successively to N10.20 per share by the end of May 2024. The ASI had, during the period, rose from its opening index of 31,069.37 points to close weekend at 99,300.38 points. The NGX Banking Index rose from 361.57 points to 797.37 points. The NGX 30 Index, which opened the period at 1,286.68 points, closed the period at 3,676.44 points. The NGX Main Board Index appreciated from 1,267.54 points to close weekend at 4,634.31 points.

  • Fidelity Bank outperforms banks, stock market with 507% gain in five years

    Fidelity Bank outperforms banks, stock market with 507% gain in five years

    Fidelity Bank Plc outperformed all major market indices for measuring returns at the Nigerian stock market, with the bank’s average annual return over the past five years twice the average return by the overall market and almost four times of average return in the banking sector.

    A review of official trading reports at the Nigerian stock market at the weekend showed that investors in Fidelity Bank have earned more than 507 per cent in capital gains over the past five years, between May 31, 2019 and May 31, 2024

    Fidelity Bank’s share price rose by 507.14 per cent over the period, representing average annual capital gain of 101.43 per cent. This significantly exceeds all other major return benchmarks, including the banking sector.

    With 507 per cent capital gain in five years and average annual gain of more than 100 per cent, the return analysis implies that investment in Fidelity Bank is more attractive than other class of assets, including fixed-income securities such as government and corporate bonds; real estate investment and mutual funds among others.

    These returns underscore Fidelity Bank’s immense value as a stock for all times, helping investors to hedge against inflation while preserving significant long-term value.

    The high divisible nature of shares investment and high free float of Fidelity Bank, which makes the bank’s shares easily available, underline the bank as a most attractive investment option for all cadres of investors- small, medium and high networth; retail and institutional investors.  

    The All Share Index (ASI) – the common, value-based index that tracks all share prices at the Nigerian Exchange (NGX), which is widely regarded as Nigeria’s benchmark for equities market, recorded a five-year return of 219.61 per cent, an average annual return of 43.9 per cent.

    Contrary to the significantly above average performance of Fidelity Bank, the NGX Banking Index-which tracks the banking sector, doubled by 120.53 per cent over the five-year period, representing average annual return of 24.11 per cent, more than 77 percentage points below Fidelity Bank’s average return.

    Two other major price indices- the NGX 30 Index and NGX Main Board Index, recorded five-year cumulative return of 185.73 per cent and 265.6 per cent respectively, representing average annual gain of 37.15 per cent and 53.1 per cent respectively.

    The NGX 30 Index tracks share prices of the 30 largest companies at the stock market while the NGX Main Board Index represents the largest and most diversified group of listed companies at the stock exchange. Fidelity Bank is quoted on the main board, like most other major banks and companies at the stock market.

    The average annual return of 101.43 per cent underlines that Fidelity Bank provides substantial return for investors, even where such investors had borrowed money at the ruling interest rate and the invested fund was adjusted for impact of inflation rate.

    Nigeria’s inflation rate peaked at a high of 33.69 per cent in April 2024 while the Central Bank of Nigeria (CBN)’s Monetary Policy Committee (MPC) recently increased the Monetary Policy Rate (MPR), otherwise known as benchmark interest rate, to 26.25 per cent.

    Fidelity Bank’s share price, which closed May 31, 2019 at N1.68 per share, rose successively to N10.20 per share by the end of May 2024. The ASI had, during the period, rose from its opening index of 31,069.37 points to close weekend at 99,300.38 points. The NGX Banking Index rose from 361.57 points to 797.37 points. The NGX 30 Index, which opened the period at 1,286.68 points, closed the period at 3,676.44 points. The NGX Main Board Index appreciated from 1,267.54 points to close weekend at 4,634.31 points.

    Market analysts are unanimous that share prices are illustrative of the fundamental values of quoted companies.

    Managing Director, HighCap Securities Limited, Mr. David Adonri, said the price of any stock in the market is a correct reflection of the market value for the stock.

    Managing Director, Globalview Capital Limited, Mr. Aruna Kebira, explained that the market price of a stock represents the disposition of the investing public to the stock at a given period, noting that there should be consideration for both the market value and the book value or fundamentals of a stock.

    “It could be summarized that the market price of a stock is premised on the psychology of the market, the market’s mood as well as market sentiments,” Kebira said. 

    Chief Executive Officer, Sofunix Investment and Communications, Mr. Sola Oni, said the stock market shows both the current and future prospects of shares.

    “Share price reflects the current value of a company but also reveals the future prospects,” Oni said, noting that investment analysts traditionally combine market price and book values to determine the possible outlook of a stock.  

    Five-year review of the audited reports and accounts of Fidelity Bank showed strong correlation between the bank’s upwardly share pricing trend and expansive growth in its business operations.

    Read Also: Shareholders rally supports for Fidelity Bank’s recapitalisation

    The bank’s pre-tax profit had risen from N30.35 billion in 2019 to N124.26 billion in 2023, an increase of 309.4 per cent. Net profit after tax also grew by 203.3 per cent from N42.80 billion in 2019 to N129.80 billion in 2023. Earnings per share has risen successively from 98 kobo in 2019 to N3.11 per share in 2023.

    The bank’s balance sheet had expanded by 195.26 per cent from N2.11 trillion in 2019 to N6.23 trillion in 2023, within the fastest growth in the industry. Customers’ deposits, which underlines the competitive market share, more than tripled from N1.225 trillion in 2019 to N4.01 trillion in 2023, an increase of 227.35 per cent. Shareholders’ funds had also grown from N234.03 billion to N437.31 billion.

    Market pundits expected Fidelity Bank’s share price continue to rise, citing several factors that illustrated the upside potential for the stock.

    Independent investment research reports by many market pundits showed that Fidelity Bank was assigned “buy” ticker, a recommendation to investors to consider the potential attractive returns of the bank.

    The research reports were based on the historical and current operational performances of the bank as well as the clear-sighted implementation of the bank’s growth plan. The reports also considered the quality of board and management and the general human capital and resources of the bank.

    The investment advisory reports included those of Afrinvest Group, FSDH Capital and CardinalStone among others.

    Analysts were unanimous that Fidelity Bank’s share price could double in the period ahead given professional assessment of top traditional performance parameters including the company’s operational reports, investors’ preference and projections.

    Already, interim report and account of the bank for the first quarter ended March 31, 2024 showed that the bank started the current business year on stronger footing with three-digit growths across key performance indicators.

    The three-month report, released at the NGX, showed that gross earnings increased by 89.9 per cent to N192.1 billion in first quarter 2024. The bank’s top-line performance continued to be driven by broad-based growths across income lines with interest income rising by 90.7 per cent and non-interest income growing by 84 per cent in first quarter 2024.

    Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, foreign exchange (forex)-related income, trade, banking services, and remittances, supported by increased customer transactions.

    Profit before tax doubled by 120 per cent to N39.5 billion in first quarter 2024 as against N17.9 billion in first quarter 2023. The bank’s performance was driven by expanding market share with total deposit rising by 17 per cent within the three months to N4.7 trillion, compared with N4 trillion recorded at the end of 2023. The bank also increased its supports for national economic growth with net loans and advances rising by 21 per cent from N3.1 trillion at the end of 2023 to N3.7 trillion by March 2024.

  • Shareholders rally supports for Fidelity Bank’s recapitalisation

    Shareholders rally supports for Fidelity Bank’s recapitalisation

    • ‘Buying more shares means bigger returns’

    Fidelity Bank Plc has received a major boost for its N500 billion recapitalisation drive as shareholders expressed firm commitments to buy into new share issuances by the commercial bank.

    Shareholders, under the auspices of Nigeria’s leading shareholders’ associations, said they would buy into any share offering by Fidelity Bank as the bank holds exciting future for above-average returns.

    With nearly 400,000 shareholders, Fidelity Bank has the most diversified retail shareholders’ base among Nigerian banks. No single shareholder held up to 5.0 per cent of the issued share capital of the bank. Five per cent and above are considered the material shareholding under extant laws and market regulations.

    The massive support is important for Fidelity Bank as a retail shareholders-based company.  

    In what appeared to be positioning for expected rights issue by the bank, Fidelity Bank has been one of the most active and highest-gaining stocks at the Nigerian Exchange (NGX).

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    Fidelity Bank’s share price opened the week as one of the five highest gainers with a gain of 8.43 per cent to close at N9 per share. It was the fourth most active stock at the market. It was one of the top 10 gainers yesterday with a gain of 5.56 per cent to close at N9.50 per share.

    Rights issue is traditionally pre-allotted on the basis of existing shareholdings to the possible number of new shares a shareholder can buy under the new issue. All things being equal, rights issue is also relatively cheaper than other share offerings and market price as rights are considered as additional compensation to shareholders.

    Shareholders said Fidelity Bank has shown strong resilience over the years and demonstrated its investors’ friendliness with significant dividends and capital gains.

    The shareholders’ endorsements underlined market pundits’ expectations that Fidelity Bank would easily raise additional funds and retain its status as one of Nigeria’s leading commercial banks with international authorisation.

    The highly diversified shareholding base, while it has its challenges of corporate register management and stock volatility, shows Fidelity Bank as a popular stock. Its huge free float also underscores the pricing efficiency of the stock at the stock market, ensuring that the share price is a reflection of the bank’s fundamental and investors’ expectation.

    With average annual return of more than 81 per cent over the past five years, comparative analysis shows that Fidelity Bank outperforms all other major market indices with the bank’s average annual return for the period twice the average return by the overall market and almost four times of average return in the banking sector.

    Shareholders said the performance of Fidelity Bank has endeared them to the bank, expressing optimism that the bank is poised for major leap in the emerging Nigerian financial services sector.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, said Fidelity Bank has shown that shareholders can trust it for sustainable growth and returns.

    “Fidelity Bank is a promising bank that is growing organically, it is servicing its niche and share of the market. My appeal to the board is to continue to imbibe good corporate governance in order to sustain this growth,” Igbrude said.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar said the performance of Fidelity Bank over the years has been very encouraging.

    According to him, the bank has a very good corporate governance structure that reassures investors of the safety of their investments.

    He pointed out that the successful acquisition of Union Bank UK was a testimony to the financial strength of the bank.

    “The bank has since joined the league of banks paying interim dividend, which shareholders are happy with,” Umar said.

    He commended the board and management of the bank “for the good results they have been posting”, noting that investors have confidence in the future of the bank.

    “The appointment of Dr Nneka Onyeali-Ikpe as the Group Managing Director, after serving as Executive Director, indicates that the bank has a good succession planning in place. The calibre of the independent non-executive directors on the board gives shareholders strong confidence of the kind of board oversight they will be expecting.

    “Now that the bank is coming out with a rights issue offer, we are very confident shareholders will take their rights , and we are sure the bank will meet the recapitalisation requirement set out by the Central Bank of Nigeria (CBN),” Umar said.

    National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs. Bisi Bakare, said Fidelity Bank has created a “very excellent impression” in the minds of shareholders.

    According to her, the bank has continually showcased exemplary leadership with continuous impressive results, with successive growths over the past five years.

    “Despite various challenges and economic uncertainty and other unforeseen occurrences, Fidelity Bank weathers the storm with strong performances,” Bakare said.

    She cited the 2023 business year when the bank doubled its pre-tax profit by 131.5 per cent to N124.2 billion on the back of 64.9 per cent growth in gross earnings to N555.8 billion. The bank’s deposits increased by an impressive 56 per cent from N2.6 trillion in 2022 to N4.0 trillion while total assets grew by 56 per cent from N3.9 trillion to N6.2 trillion.

    “Furthermore, Fidelity Bank paid a dividend of 85 kobo, including interim dividend of 25 kobo and final dividend of 60 kobo. Considering the share price of Fidelity Bank, their dividend policy is very robust.

    “It is evident that our bank has not only weathered the storm of economic challenges but has also managed to thrive. Fidelity Bank is a very good bank that shareholders are very happy with their investments and we have never regretted buying into Fidelity Bank.

    “I believe their right issue is going to be oversubscribed considering their past performances,” Bakare said.

    National Coordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie said Fidelity Bank’s growth has been “very amazing as it has delivered good returns in terms of good dividends to shareholders”.

    According to him, shareholders are proud of the bank’s balance sheet, which is something that gives shareholders hopes for better rewards in the years ahead.

    “All that average investors look for in a company is the fundamental, and Fidelity Bank is very strong in this. They are poised to surpass what they have projected. I should say the sky is their limit despite the headwinds.

    “Fidelity Bank remains one of the best stocks that investors should look forward to invest in for better returns. I’m very optimistic of the bank’s healthy strong assets. With its good corporate governance and excellent customers’ service, there is every reason to hope for more promising future,” Okezie said.

    The interim report and account of the bank for the first quarter ended March 31, 2024 showed that the bank started the current business year on stronger footing with three-digit growths across key performance indicators.

    The three-month report, released at the NGX, showed that gross earnings increased by 89.9 per cent to N192.1 billion in first quarter 2024. The bank’s top-line performance continued to be driven by broad-based growths across income lines with interest income rising by 90.7 per cent and non-interest income growing by 84 per cent in first quarter 2024.

    Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, foreign exchange (forex)-related income, trade, banking services, and remittances, supported by increased customer transactions.
    Profit before tax doubled by 120 per cent to N39.5 billion in first quarter 2024 as against N17.9 billion in first quarter 2023. The bank’s performance was driven by expanding market share with total deposit rising by 17 per cent within the three months to N4.7 trillion, compared with N4 trillion recorded at the end of 2023. The bank also increased its supports for national economic growth with net loans and advances rising by 21 per cent from N3.1 trillion at the end of 2023 to N3.7 trillion by March 2024.

  • Fidelity Bank gets highest corporate governance rating

    Fidelity Bank gets highest corporate governance rating

    Fidelity Bank Plc has been assigned with the highest corporate governance rating as one of the most-compliant companies at the Nigerian stock market.

    Fidelity Bank is awarded CG+, the highest rank under the Corporate Governance Rating System (CGRS), which screens quoted companies against prescribed best practices and standards.

    This implies that the bank complies with the highest corporate governance standards by promptly adhering  to all full disclosure requirements and global best practices.

    A review of the latest compliance report showed that Fidelity Bank sustains its highest-ranking rating of CG+, with shareholders and market pundits commending the high corporate standards of the bank.

    Corporate governance compliance at the stock market includes prompt submission of detailed operational results from period to period as required by the market rules, full disclosures of all material and regulated information and accurate rendition of reports and accounts.

    Also, compliance includes ensuring that the company’s shares are not encumbered in a way that impinges on free float or number of shares available to the general investing public for efficient price discovery, compliance with all investor-protection safeguards in communication with shareholders and organizing statutory meetings as required among others.

    Head, Listings Regulation Department, NGX Regulation (NGXRegco), Mr. Godstime Iwenekhai, explained that the CGRS was designed to strengthen the governance structures of listed companies and provide a valid basis for discerning investors to differentiate between listed companies on the basis of their compliance with acceptable standards of corporate governance.

    “In our view, corporate governance promotes ethical business practices, transparency and fair competition,” Iwenekhai said.

    He pointed out that the special character combination CG+ underlines compliance with best practices and highest corporate governance standards, and entitles the rated companies to special privileges at the stock market.

    The Nigerian Exchange (NGX) noted that compliance tracker was aimed at maintaining market integrity and protecting the investors, noting that listed companies are required to adhere to high disclosure standards.

    “Financial information which is periodic disclosure and on-going material events disclosure should be released to NGX in a timely manner to enable it efficiently perform its function of maintaining an orderly market”, NGX stated, referencing some of the criteria for its corporate governance rating.

    Market pundits and shareholders agreed that corporate governance compliance is a major factor in deciding on investing in a publicly quoted company. It is also a reference for the safety of such investment.

    Read Also: Fidelity Bank’s PBT rises by 120.1%

    Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe, said corporate governance compliance rating is extremely important as it indicates to the investing public the quality of compliance of a company to listing requirements.

    “As you know, stock prices are driven primarily by available information and the NGX has a minimum level of disclosure expected of quoted companies. This disclosure helps the public make qualitative decisions as to the state or performance of the companies they are seeking to invest in. These markers are therefore the initial indicators as to whether the companies are meeting their disclosures and other regulatory obligations or not”, Amolegbe, a former president of Chartered Institute of Stockbrokers (CIS), said.

    Managing Director, APT Securities & Funds, Mallam Garba Kurfi, said the corporate governance rating shows the extent companies are in compliance with corporate governance.

    “High rating means very good in doing right thing timely while low rating discourages foreign investors from investing in such companies”, Kurfi, a leading market operator and member of the board of Securities and Exchange Commission (SEC), said.

    Managing Director, HighCap Securities, Mr David Adonri, noted that CG+ means excellent corporate governance rating”.

    “When a company is organised and uphold good corporate governance, the benefit to stakeholders is maximized”, Adonri said.

    Shareholders said high corporate governance was one of the compelling reasons they chose to invest in Fidelity Bank.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr. Faruk Umar said Fidelity Bank has a very good corporate governance structure that reassures investors of the safety of their investments.

    According to him, while the bank has good succession plan, the calibre of the independent non-executive directors on the board gives shareholders strong confidence of the kind of board oversight they will be expecting.

    National Coordinator, Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, said Fidelity Banks impressive performance over the years had been built on good corporate governance.

    “My appeal to the board is to continue to imbibe good corporate governance in order to sustain this growth”, Igbrude said.

    National Coordinator, Pragmatic Shareholders Association of Nigeria, Mrs. Bisi Bakare, said Fidelity Bank has created a very excellent impression in the minds of shareholders.

    According to her, the bank has continually showcased exemplary leadership with continuous impressive results, with successive growths over the past five years.

    “Fidelity Bank is a very good bank that shareholders are very happy with their investments and we have never regretted buying into Fidelity Bank”, Bakare said.

    National Coordinator, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie said good corporate governance was the cornerstone of Fidelity Banks sustained growth and impressive returns over the years.

    “Fidelity Bank remains one of the best stocks that investors should look forward to invest in for better returns. I’m very optimistic of the banks healthy strong assets. With its good corporate governance and excellent customers service, there is every reason to hope for more promising future”, Okezie said.

    The NGX tags defaulting companies for poor corporate governance and also applies various monetary and non-monetary sanctions, including fines ranging between N100,000 to N100 million, partial or full suspension of trading, naming and shaming with a red alert tag and compulsory delisting in extreme cases. 

  • Fidelity Bank’s PBT rises by 120.1%

    Fidelity Bank’s PBT rises by 120.1%

    Fidelity Bank Plc has achieved an impressive 120.1 per cent growth in Profit Before Tax  to N39.5 billion.

    The performance represents 120.1 per cent growth from N17.9 billion recorded in the first quarter of 2023.

    This was according to the bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX).

    According to the statement from the bank, gross earnings increased by 89.9 per cent year-on-year to N192.1 billion from N101.1 billion in first quarter of 2023.

    “The increase was led by a combination of interest income (90.7 per cent year-on-year ) and non-interest income (84.0 per cent year-on-year).

    Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, FX-related income, trade, banking services, and remittances, supported by increased customer transactions,” the bank said.

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    Commenting on the results, Managing Director/CEO, Fidelity Bank Plc, Nneka Onyeali-Ikpe,  said: “We are pleased to report another quarter of strong financial performance driven by our strategic focus on customer-centricity, digital innovation and operational excellence. Despite the challenging macroeconomic environment, we remained resilient and agile, delivering double-digit growth on key income lines while advancing our business sustainability agenda.”

    In the period under review, the bank grew Net interest income grew by 89.5 per cent yoy to N99.6 billion from N52.6 billion in first quarter of 2023, driven by interest and similar income as the yield on financial instruments improved to 14.7 per cent from 10.1 per cent in first quarter of 2023 . In line with the steady rise in interest rates through the year, average funding cost increased by 80bps ytd to 5.2 per cent. 

    Total deposits increased by 17.2 per cent year-to-date to N4.7 trillion from N4 trillion in 2023 financial year, driven by double-digit growth across all deposit types (demand, savings and term). Net Loans and Advances increased by 21.2 per cent to N3.7 trillion from N3.1 trillion in 2023 financial year.

     “Beginning the year on this inspiring note reaffirms our strategy of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper. We are committed to our guidance as we build a more resilient business franchise with a well-diversified earnings base in 2024,” explained Onyeali-Ikpe.

    Ranked as one of the best banks in Nigeria, Fidelity Bank is a full-fledged customer commercial bank with over 8.5 million customers serviced across its 251 business offices in Nigeria and the United Kingdom as well as on digital banking channels.

  • Fidelity Bank extends GMD’s tenure to 2026

    Fidelity Bank extends GMD’s tenure to 2026

    The Board of Fidelity Bank Plc yesterday extended the tenure of the bank’s Chief Executive Officer (CEO), Dr. Nneka Onyeali-Ikpe, to 2026.

    This was contained in a notification sent to the Nigerian Exchange Limited (NGX) in Lagos by the Company Secretary, Mr Ezinwa Unuigboje.

    Unuigboje, in the notice, stated that the decision was taken at the Board’s meeting on February 12, 2024. He explained that the extension is in furtherance of the bank’s strategic objectives and premised on Onyeali-Ikpe’s performance since assumption of office on January 1, 2021.

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    “The Board is confident that the bank’s performance will continue its upward trajectory under Onyeali-Ikpe’s leadership.

    They also look forward to working closely with her and the executive management team on execution of various strategic initiatives, including international expansion,” he said.

  • Fidelity Bank seeks N32b new equity from shareholders

    Fidelity Bank seeks N32b new equity from shareholders

    Fidelity Bank Plc has concluded plans to raise about N32 billion from its existing shareholders in the first tranche of a recapitalisation that may see the bank raising more than N160 billion in new equity funds.

    The Nigerian Exchange (NGX) at the weekend confirmed that Fidelity Bank has submitted application for its regulatory approval to float a N32 billion rights issue.

    Fidelity Bank will be offering 3.2 billion ordinary shares of 50 kobo each to existing shareholders at N10 per share. The shares will be pre-allotted on the basis of one new ordinary share for every 10 existing ordinary shares held as at the close of business on Friday, January 05, 2024.

    Fidelity Bank closed at the weekend at the NGX at N14.20 per share, representing a premium of 42 per cent on the rights issue’s price. In traditional regulatory process, the NGX notice implies that the new issue may open in the next few weeks.

    In anticipation of the rights issue, investors had opened up orders on the shares of Fidelity Bank in recent trading days, putting the bank as the most active stock at the stock market in the first trading week of the year.

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    Analysts estimated that Fidelity Bank could raise more than N160 billion in a hybrid capital raising plan involving new and existing investors.

    Fidelity Bank had indicated plans to issue 13.2 billion ordinary shares of 50 kobo each to new and existing investors to boost the bank’s capital base.

    Under the plan, the bank had sought to float a public offer of 10 billion shares and a rights issue of 3.2 billion shares.

    At the current market valuation, market analysts estimated that the bank may be able to raise some N160 billion, although the final offer prices may be determined by the market situation.

    Fidelity Bank had outlined that it needed the new capital to sustain its current strong growth trajectory in order to increase profitability, domestic and international expansion and enhancement of its digital capabilities.

    “Advances in technology, the rapid evolution of the business of banking and changes in the operating landscape make it imperative that the bank remains agile, adaptable and properly positioned to respond appropriately to developments, whilst remaining a competitive and forward looking institution,” the bank stated.

    According to the bank, the new hybrid capital raising is aimed at ensuring that the bank can take advantage of emerging business opportunities and secure long term profitability and competitive advantage, while ensuring increased shareholder value.

    Managing Director, Fidelity Bank Plc, Mrs. Nneka Onyeali-Ikpe said the bank was growing in leaps and bounds and needed to expand its capital base to take advantage of emerging opportunities.

    “We will also use the additional capital to enhance our technology infrastructure to enable us to serve more customers,” Onyeali-Ikpe said.

  • Fidelity Bank announces maiden edition of Family Weekend Fiesta

    Fidelity Bank announces maiden edition of Family Weekend Fiesta

    To celebrate Christmas, Fidelity Bank has announced plans to host the maiden edition of the Fidelity Family Weekend.

    The family weekend fiesta is scheduled to kick off on Saturday, December 16 and end on Sunday, December 17 at the Fidelity Grounds, Oniru, Victoria Island, Lagos.

    According to the organisers, the event is designed to create a fun and relaxed atmosphere for children to play, parents to relax and young adults to unwind during the festive season.

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    According to Meksley Nwagboh, the Divisional Head, Brand & Communications, Fidelity Bank, the family weekend fiesta would feature dedicated fun activities for children including dancing competitions, bouncing castles, train rides, Santa’s Grotto, balloon games, karaoke competitions, games arcades, couple games, and musical performances.

    “The Yuletide season is all about coming together and spending quality time with loved ones, especially as we wind down the year in anticipation of a new year. As a bank committed to providing memorable experiences for its clients, we pioneered the Fidelity Family Weekend to host our customers and clients to two fun filled days of family entertainment. We believe this is one more way of thanking our customers for a successful year,” noted Nwagboh.

  • Fidelity Bank holds expo in U.S.

    Fidelity Bank holds expo in U.S.

    All is set for the Fidelity International Trade and Creative Connect (FITCC) billed for Houston, Texas in the United States. 

    Labelled the FITCC Houston, this second edition of the international expo will take place from October 24-25, 2023. 

    The maiden edition held last November in London with over $200 million worth of deals closed. 

    This year’s edition would also  promote Nigeria’s non-oil exports as well as facilitate integrations to global supply-chain networks. 

    Managing Director, Fidelity Bank Plc, Nneka Onyeali-Ikpe, said: “Fidelity Bank is very much interested in supporting export trade and has consistently demonstrated this by the interventions and innovations that we bring to the space.

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    “Beyond the instrument of financing, some of our key interventions in the space revolve around business management capacity development with initiatives like the Export Management Programme (EMP), which we host, in partnership with the Lagos Business School and the Nigerian Export Promotion Council (NEPC) and market access development initiatives like FITCC,” 

    The bank was recognised as the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards. 

    The bank has also won awards for the “Fastest-Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.