News
Fidelity Bank’s Consistent Strong Growth Excites Investors
Fidelity Bank’s Consistent Strong Growth Excites Investors
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
Fidelity Bank Plc has recorded an average annual profit growth of 64 per cent over the past three years, underlining its resilience as one of Nigeria’s fastest growing companies.
The bank has also seen rapid expansion in customer base and assets as total balance sheet size leapt from N2.1 trillion to N6.2 trillion, the sixth largest in the Nigerian banking industry. The balance sheet was driven by a hefty total deposit of more than N4 trillion, equally the sixth biggest in the industry.
A review of the audited reports and accounts of Fidelity Bank between 2023 and 2020 showed double-digit growths over the years with cumulative average annual growth rate (CAGR) in earnings, profitability and assets significantly above average industry rate and within the best performance among publicly quoted companies.
Average annual profit growth rate of 64 per cent underscores Fidelity Bank’s fundamental strength as an inflation-hedging investment. The operational growth strengthens the overall return outlook of the bank, which share price has delivered an average annual capital gain of more than 100 per cent in five years at the stock market.
Several experts’ reviews have said the bank’s strong historical performance is a major attraction for its ongoing combined rights and public offer.
Fidelity Bank is offering a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share. The bank is also simultaneously 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, which opened on Thursday, June 20, 2024, are scheduled to close on Monday, July 29, 2024. The rights issue has been 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’s gross earnings rose successively from N206 billion in 2020 to N251 billion, N337 billion and N556 billion in 2021, 2022 and 2023 respectively, representing average annual growth of 39 per cent. Profit before tax has grown consecutively from N28 billion in 2020 to N124 billion in 2023. Profit after tax jumped from N26.65 billion in 2020 to N99.45 billion in 2023. Earnings per share has also grown from 92 kobo in 2020 to N3.11 in 2023, showing the headroom for increased dividends to shareholders.
The bank’s profitability has been driven by continuous increase in market share, a strong commitment to national economic growth with supports for businesses and high customer trust.
Fidelity Bank’s total assets has grown successively from N2.11 trillion in 2019 to N2.76 trillion in 2020 and consecutively to N3.28 trillion, N3.99 trillion and N6.23 trillion in 2021, 2022 and 2023 respectively. Shareholders’ funds have also grown successively from N234.03 billion in 2019 to N273.53 billion, N285.29 billion, N314.36 billion and N437.31 billion in 2020, 2021, 2022 and 2023 respectively.
Total deposit has grown by an average annual growth of 33 per cent from N1.7 trillion in 2020 to N4.02 trillion in 2023. A breakdown underlined a strong customer confidence with low-cost deposit accounting for 97.4 per cent of total deposit.
Low-cost deposit has grown at a faster CAGR of 44 per cent over the period, rising from N1.31 trillion in 2020 to N3.91 trillion in 2023. Savings accounts had also doubled over the period from N424 billion in 2020 to N881 billion in 2023, representing average annual growth rate of 28 per cent.
Fidelity Bank has more than 8.0 million customers, with 5.1 million of these customers on digital channels, underlining the strength of the bank’s robust information and communication technology.
As customers increasingly entrust the bank with their funds, Fidelity Bank has also shown equally aggressive commitment to national economic growth with average annual growth of 32 per cent in net loans.
Net loans have grown successively from N1.32 trillion in 2020 to N1.66 trillion, N2.12 trillion and N3.09 trillion in 2021, 2022 and 2023 respectively. The above average growth in loans shows Fidelity Bank’s famed supports for Nigerian businesses. The bank’s loans portfolio is the fifth largest in the Nigerian banking industry.
A frontline industrialist and a customer of the bank, Dr Kamoru Yusuf, Founder of KAM Holding, said Fidelity Bank has been exceptional in supporting the development of Nigerian companies.
Yusuf, whose group has metamorphosed into a global business conglomerate operating in three countries across two continents, confirmed that KAM Holding has benefited immensely from financial supports from Fidelity Bank.
He said investing in Fidelity Bank will be an investment in the growth of Nigerian economy and companies like KAM Holding, the nation’s largest wholly indigenous metal and steel production company.
He underlined the relationship between increased capital for a business-focused bank like Fidelity Bank and the overall development of the Nigerian economy.
There are strong indications that the bank will sustain its impressive growth record in the years ahead. 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 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.
News
Nestlé Nigeria Celebrates First Graduation at Flowergate, empowering 20 Young Graduates
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
Nestlé Nigeria reinforced its commitment to youth empowerment and skill development with the graduation of 20 young men and women from its Technical Training Centre (TTC) in Flowergate.
This ceremony, marking the first-ever graduation at the Flowergate facility, is a significant milestone in the company’s ongoing efforts to equip Nigerian youth with essential technical skills.
The Flowergate TTC, launched in 2023, is part of Nestlé Nigeria’s broader technical training initiative, which has been running since 2011.
Since its inception, the program has seen over 200 young Nigerians successfully complete the rigorous 18-month curriculum. With the company investing over six billion naira in this initiative, Nestlé Nigeria continues to prioritize developing the next generation of skilled professionals to drive the country’s industrial future.
Speaking at the event, Mr. Wassim Elhusseini, Managing Director/CEO of Nestlé Nigeria, expressed pride in the graduates’ accomplishments, saying, “For over 13 years, our commitment to nurturing young talent has reflected our confidence in the future of this generation.
This year alone, we proudly graduated 70 skilled professionals across all our centers, including Agbara and Abaji, all of whom have now joined our team.
For us, this program is more than just skills training—it’s about empowering young people to shape their futures and become catalysts for change.
By equipping them with critical technical expertise, we are opening doors to personal growth and financial independence. Ultimately, this is a long-term investment in creating shared value, as their success extends beyond themselves, impacting their families, strengthening communities, and driving growth in the industry.”
The Technical Training Program combines theoretical learning with hands-on engineering experience and culminates in the City and Guilds of London Technicians’ Certification, significantly boosting the employability of the participants.
The ceremony was attended by prominent community leaders, including His Royal Majesty, Alayeluwa Oba (Dr.) Babatunde Adewale Ajayi, Akarigbo and Paramount Ruler of Remo Land, who applauded the initiative. Other distinguished guests included the President of the Chartered Institute of Personnel Management of Nigeria, Mallam Ahmed Ladan Gobir; the Executive Secretary of the Association of Food, Beverage and Tobacco Employers, Mr. Adewale Jones; the Registrar and Chief Executive of the Chartered Institute of Personnel Management of Nigeria, Oluwatoyin Naiwo; and representatives from the Nigerian Employers Consultative Association (NECA). Tumi Onamade also represented the Alliance for Youth Initiative.
Beyond the TTC, Nestlé Nigeria’s broader commitment to youth empowerment is embodied in its Nestlé Needs YOUth initiative, which helps young people access economic opportunities through various programs, reaching an average of 25,000 youths annually. The company’s efforts are part of a larger strategy to prepare Nigerian youth for the future, ensuring they can thrive in an evolving industrial landscape.
News
NiMet Upgrades Weather Presentation Infrastructure to 4K Resolution, Plan November Launch
AJAGBE ADEYEMI TESLIM
SPONSORED BY: H&H
The Nigeria Meteorological Agency (NiMet) is upgrading its weather presentation infrastructure to cutting-edge 4K resolution.
The transformative initiative is being implemented in partnership with global technology leader Chyron and will be launched in November 2024.
The project will significantly enhance NiMet’s weather presentation capabilities, and marks a critical milestone in the agency’s commitment to delivering world-class meteorological services. NiMet will integrate Chyron’s state-of-the-art weather presentation solutions, bringing enhanced processing power, dynamic real-time graphics, and high-definition displays to its broadcasts. The move to 4K resolution will ensure sharper, more detailed visuals, giving Nigerians access to superior weather data that is clear, accurate, and reliable.
The upgrade forms part of the strategic vision of NiMet’s management under the leadership of the Director General and Chief Executive Officer of the agency, Prof. Charles Anosike to reposition the agency. The current management is focused on modernizing the agency’s operational framework to meet international standards, utilizing cutting-edge technology to improve the accuracy, efficiency, and visual clarity of weather forecasts, which are critical to sectors such as aviation, agriculture, and public safety.
The project is also a testament to Prof. Anosike’s focus on innovation and excellence in delivering vital meteorological services that meet the growing needs of various sectors and stakeholders.
News
GOCOP partners NCDMB, EMADEB, Dangote, NCAA, Setraco, UBA, NCC, others for 2024 conference
-
News6 years agoBreaking: ‘Penalty’ Crooner Small Doctor Caught in Possession of Fire Arms
-
News6 years agoTiffany Trump Is Dating a Millionaire Michael Boulos From Nigeria
-
News6 years agoPDP Set To Cause Panic Days To Polls: FG
-
News6 years agoINEC Engages EFCC, FIU In Tracking Campaign Funding
-
Politics6 years agoPDP Alleges Plot by APC, Presidency to Detain Its Leaders
-
Politics6 years agoOsinbajo Has Betrayed Yorubas, Says Afenifere
-
Politics6 years agoMuslim-Muslim Ticket: I Am Proud Of My Role In Stopping Tinubu – Saraki
-
News2 years ago
INEC Publish Final List of Candidates For 2022 Osun Governorship Poll