The bank’s H1’23 financial statement, listed on the Nigerian Exchange Group (NGX), reported an impressive 204.4% surge in Profit Before Tax (PBT) for the first half of 2023, totalling N76.3 billion. Additionally, all financial indicators exhibited positive results, solidifying Fidelity Bank’s position as one of Nigeria’s fastest-growing and well-managed financial institutions.
During this period, the bank’s Gross Earnings increased by 59.6% to N247.1 billion, compared to N154.8 billion in June 2022. Profit After Tax (PAT) soared to N61.9 billion, reflecting a remarkable 166% growth from N23.3 billion in the corresponding period, resulting in an Earnings per Share of 194 kobo. The bank’s Net Loans and Advances expanded by 25.1% from N2.1 trillion in December 2022 to N2.6 trillion in June 2023. Customer Deposits also rose by 23.2% to N3.2 trillion from N2.6 trillion in December 2022.
Building on this strong performance, the bank’s board approved an interim dividend of 25 kobo per share, marking the second consecutive year of paying interim dividends, underscoring its commitment to delivering sustainable value to shareholders.
Nneka Onyeali-Ikpe, Managing Director/Chief Executive Officer of Fidelity Bank Plc, expressed satisfaction with the bank’s performance, noting the resilience and fundamental strength of the bank in challenging global economic times. She reiterated the bank’s dedication to empowering individuals, businesses, and economies to prosper.
Fidelity Bank has achieved significant milestones, with its stock reclassified from small-price stock to medium-price stock by the NGX in July 2023. The bank has consistently delivered impressive financial results and now holds the highest earnings per share on the NGX based on half-year financial figures for the second consecutive year.
Capitalizing on its stellar performance, the bank’s shareholders unanimously approved a capital-raising initiative via a Public Offer for up to 10 billion Ordinary Shares and a Rights Issue of up to 3.2 billion Ordinary Shares, representing one new share for every ten held by new and existing shareholders.
This capital infusion will support Fidelity Bank’s growth in profitability, domestic and international expansion, and enhancement of its digital capabilities. The bank aims to be among Nigeria’s top five banks by 2025 and is eyeing global expansion, with a presence in six countries in the next three years. Fidelity Bank’s acquisition of the London unit of Union Bank of Nigeria Plc earlier this year and ongoing negotiations for another acquisition aligns with its expansion strategy.
The bank is committed to tapping into emerging business opportunities, ensuring long-term profitability, competitive advantage, and increased shareholder value. Shareholders voiced their support for the capital-raising initiative, highlighting the bank’s potential for future growth.
With trade within Africa expected to grow substantially, Fidelity Bank is poised to capitalize on the vast opportunities that lie ahead. The bank raised N13.8 billion in a private placement earlier this year, which will be utilized for acquisitions, and it plans to leverage retained earnings for further expansion.
Fidelity Bank is well-prepared for the future, with private banking customers seeking opportunities for business and property investments in the UK and beyond. The bank aims to deliver robust growth for both itself and its customers while maintaining its commitment to efficiency and speed in concluding capital-raising exercises.
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