By Jemimah Wellington, JKNMedia Reporter
OVER THE past three years, Fidelity Bank (FB) Plc has achieved an average annual profit increase of 64%.
This growth underscores its position as one of Nigeria’s fastest-growing banks.
The bank’s customer base and assets have expanded rapidly, with the total balance sheet size increasing from N2.1 trillion to N6.2 trillion, making it the sixth largest in Nigeria.
A significant total deposit exceeding N4 trillion has driven this growth, also ranking sixth in the industry.
FB’s audited reports from 2020 to 2023 reveal substantial growth in earnings, profitability, and assets.
The average annual growth rate in these areas outpaced the industry average and is among the best performances of publicly traded companies.
The bank’s average annual profit growth rate of 64% highlights its fundamental strength as an inflation-hedging investment and enhances its overall return outlook.
Additionally, the bank’s stock has delivered an average annual capital gain of over 100% in five years.
Experts attribute the bank’s strong historical performance to its major attraction for the ongoing rights and public offer.
FB is offering a rights issue of 3.2 billion ordinary shares at N9.25 per share and 10 billion ordinary shares to the public at N9.75 per share.
The offer, which began on June 20, 2024, will close on July 29, 2024.
The rights issue is pre-allotted on the basis of one new ordinary share for every 10 existing shares held as of January 5, 2024.
FB’s gross earnings have consistently increased, rising from N206 billion in 2020 to N556 billion in 2023, representing an average annual growth of 39%.
Profit before tax grew from N28 billion in 2020 to N124 billion in 2023, while profit after tax increased from N26.65 billion to N99.45 billion in the same period.
Earnings per share jumped from 92 kobo in 2020 to N3.11 in 2023, indicating potential for higher dividends.
The bank’s profitability stems from increasing market share, support for businesses, and high customer trust.
Total assets grew from N2.11 trillion in 2019 to N6.23 trillion in 2023.
Shareholders’ funds also saw successive growth from N234.03 billion in 2019 to N437.31 billion in 2023.
Total deposits grew by an average annual rate of 33%, from N1.7 trillion in 2020 to N4.02 trillion in 2023.
Low-cost deposits, accounting for 97.4% of total deposits, grew at a faster rate of 44%, from N1.31 trillion in 2020 to N3.91 trillion in 2023.
Savings accounts doubled from N424 billion in 2020 to N881 billion in 2023, with an average annual growth rate of 28%.
FB serves over 8 million customers, with 5.1 million using digital channels, highlighting its robust IT infrastructure.
As customers increasingly trust the bank with their funds, the bank has demonstrated a commitment to national economic growth, with net loans growing at an average annual rate of 32%.
Net loans increased from N1.32 trillion in 2020 to N3.09 trillion in 2023.
This growth shows FB’s support for Nigerian businesses, making its loan portfolio the fifth largest in the Nigerian banking industry.
Industrialist Dr. Kamoru Yusuf, Founder of KAM Holding, praised the bank for its support in developing Nigerian companies.
Yusuf stated that investing in FB supports the growth of the Nigerian economy and companies like KAM Holding, the largest indigenous metal and steel producer in Nigeria.
The bank’s interim report for the first quarter of 2024 shows continued strong performance, with gross earnings up by 89.9% to N192.1 billion.
Interest income rose by 90.7%, and non-interest income grew by 84%.
Profit before tax doubled to N39.5 billion, while total deposits increased by 17% to N4.7 trillion, and net loans rose by 21% to N3.7 trillion.
