Business
Improved Share Price As Prove of Fidelity Bank’s Growth
When the management of the Nigerian Exchange Limited (NGX) in July 2023 announced that it was reclassifying Fidelity Bank Plc from small-price stock to medium-price stock, financial analysts concluded that the road to attaining Tier1 status by the bank is closer than ever imagined. The NGX said the reclassification became necessary because Fidelity Bank shares have been trading above the N5.00 mark since February 2023. According to the NGX, rule 15.29 of the Rulebook of the Exchange, 2015 (Dealing Members’ Rules) notes that equities priced above N5 per share for at least four of the most recent six months of trading, or new security listings priced above N5 per share at the time of listing on NGX are classified as medium price stock. “Fidelity Bank traded above the N5.00 mark on February 20, 2023 and has remained above the N5 mark up until close of business on 30 June 2023. “This indicates that Fidelity Bank has been trading above N5 for at least four months in the last six months. Therefore, it should be reclassified from small price stock to medium price stock,” it pointed out. The bank has continued to post commendable financial performance every quarter as it cements its position amongst leading banks in the country. In the half-year 2023 results and for the second year running, the bank emerged as the company with the highest earnings per share on the Nigerian Exchange Limited (NGX).
According to a report, Fidelity Bank, Seplat Energy, Total Energies, Okomu Oil, Presco, Dangote Cement, MTN Nigeria, BUA Foods, First City Monument Bank (FCMB) and Geregu Power emerged as the companies with the highest earnings per share within that review period. Earnings per share (EPS) is a company’s net profit divided by the number of common shares it has outstanding. It also indicates how much money a company makes for each share of its stock and is a widely used metric for estimating corporate value. A higher EPS indicates greater value because investors will pay more for a company’s shares if they think the company has higher profits relative to its share price. Fidelity Bank recorded an earnings per share of N184 in the first half of 2023 from N79 in the first half of 2022. The share price of the bank as of Thursday, April 25, 2024, stood at N9.00 per share as the bank traded 12.642 million shares valued at N112.071 billion in 246 deals. Fidelity Bank’s share price movement has shown intense volatility in an upward direction over the past years. The stock price has risen from N2.52 on January 04, 2010, to N10.00 on March 15, 2023, generating a YTD return of 297 per cent. The bank’s market capitalization as of Thursday, April 25, 2024, stood at N288.11 billion. Average volume stood at 11.76 million, share outstanding was 32.01 billion while free float was 31.72 billion
Stakeholders speak
Analysts believe the bank’s share price underlines its earnings growth and financial performance as higher dividend yields and future earnings forecasts have triggered demand in the money lender’s shares. Over the last ten years, the bank’s share price has risen to a resistance (highest price) of N14.20 on March 05, 2024, and a support price (lowest price) of N0.76 on November 16, 2016.
According to a Lagos-based stockbroker, ‘Fidelity Bank demonstrates the classical admonition to prospective investors of entering low and selling high. Over the last eight years, Fidelity’s stock price has risen by 44.19 per cent on a compound annual basis; very few stocks could prove a better inflation hedge”.
Ambrose Omordion, Chief Research Officer at Investdata Consulting Limited, believes that this is the best time for Fidelity as the bank’s share price is doing well among its peers. He said, “Fidelity is doing well and its share price is one of the best among its peers. This is so because the bank has recorded impressive results in its 2023 financial year. In June 2023, the bank shares rose by 32 per cent making it the nation’s best-performing bank share as of half year (June 30). “I can only see a better bank now and in the future. The bank is a potential Tier 1 bank and the performance of the bank is a pointer to the fact that the bank will scale the recapitalisation hurdle of the Central Bank of Nigeria (CBN)”. Prince Anthony Omojola, National Coordinator, Independent Shareholders Association of Nigeria (ISAN), asserted that “Fidelity Bank is moving up in terms of performance. They have joined those paying interim dividends and they have also dipped their hand into big money tills for huge investment. They have borrowed big to be able to handle bigger contracts and be able to reap big. The reclassification is welcomed and I hope they will not disappoint us. If they can meet expectations, the benefit will be for Nigeria”. On his part, Sam Ndata, Doyen of Nigerian Stockbrokers and non-executive director at UIDC Securities Limited commented, “This is a good development. If a company performs well, it will surely be rewarded to earn investors’ confidence”. Mr. Boniface Okezie, the National Coordinator, Progressive Shareholders Association of Nigeria, commented, “Fidelity Bank has paid its dues in the financial services sector. It has contributed immensely to the development of the small and medium enterprises (SME) sector yet pays dividends to the shareholders. Last year, it took the market by surprise by declaring a dividend of 50k per share which had not happened in previous years. The massive investment in ICT and effective branch network shows it is ready to serve the customers in a better way and make the shareholders happy”.
Continuing Growth with Excellent FY 2023 Performance
In a move that has been regarded as a demonstration of the bank’s increasing profile and the bountiful harvest awaiting shareholders in the future, the bank has proposed a final dividend of 60 kobo per share on the back of its laudable full year 2023 performance. Analysis of the recently issued results shows that the bank recorded double-digit growth across key income and balance-sheet lines which led to a Profit After Tax of N99.45 billion, representing a 112.9% annual growth. Underpinning the commendable growth in profits is an 81.6% growth in Net interest income to N277.4bn, driven by a 55.5% increase in interest income, which reflect a steady rise in asset yield throughout the year. The bank’s average funding cost dropped by 20bps to 4.4% due to increased low-cost funds that grew from 83.6% in 2022FY to 97.4% in 2023. The combination of higher asset yield and lower funding cost led to an increase in Net Interest Margin (NIM) of 8.1% from 6.3% in 2022FY. Similarly, Total Customer Deposits crossed the N4tn mark as deposits grew by 55.6% from N2.6tn in 2022FY. The increase was driven by 81.1% growth in low-cost funds. All these have led the bank’s board to propose the 60 kobo per share final dividend payout which would make shareholders enjoy a total dividend of 85 kobo per share for the reporting period, a 70.0% increase compared to the 50 kobo per share paid to its shareholders in the previous year. This makes it the eighth consecutive year the bank would pay dividends. Understandably, these developments have also excited analysts who have dubbed the bank one to watch in the financial year. As banks go into a round of capital raise, Fidelity Bank is definitely one to watch by investors as their solid performance has been consistent over the years. The efficacy of their management strategy was affirmed in October 2023 when they became the first financial institution to announce their decision to raise capital in the market, long before the regulators announced their decision to raise the capital requirements for banks. For now, the bank under the leadership of Dr Nneka Onyeali-Ikpe has consistently made the right decision, earning them the enviable position of one to watch.
Fidelity Bank Plc has congratulated Air Peace on the successful launch of its maiden direct flight from Lagos to London Heathrow, describing the milestone as a significant achievement for Nigeria’s aviation sector and a testament to the power of indigenous partnerships.
The commendation was delivered by Dr. Nneka Onyeali-Ikpe, managing director of Fidelity Bank, during a special event held in Lagos to celebrate the airline’s expansion into the European market.
“This is not just a win for Air Peace, but a win for Nigeria,” Onyeali-Ikpe said. “It reflects the strength of home-grown businesses and the impact of strategic financial support in enabling national champions to thrive on the global stage.”
Nigeria CommunicationsWeek reports that Fidelity Bank has played a pivotal role in Air Peace’s growth, providing early financial backing and advisory services that helped the airline become the largest carrier in West Africa. The bank continues to support Air Peace through payment processing and other financial services
The launch of the London route marks a new chapter for Air Peace, which now joins a select group of African airlines operating direct flights to Heathrow.
The development is expected to boost tourism, trade, and connectivity between Nigeria and the United Kingdom.
Speaking at the event, Allen Onyema, Chairman of Air Peace, expressed gratitude to Fidelity Bank for its unwavering support and reaffirmed the airline’s commitment to excellence and service.
“This partnership has been instrumental in our journey,” Onyema said. “We are proud to fly the Nigerian flag across international skies.”
Industry stakeholders present at the event praised the collaboration between the two companies as a model for sustainable business growth and national development.
The Group Chairman, United Bank for Africa (UBA) Plc, and Heirs Holdings Limited, Tony Elumelu, CFR has challenged African policymakers to create environments that reward enterprise and unlock the continent’s vast potential. He said this much while delivering a keynote address during the Abuja Business & Investment Summit & Expo 2025, which held at the Bola Ahmed Tinubu International Conference Centre Abuja on Wednesday, said “Predictable regulation attracts long-term investment, while inconsistency drives it away. He therefore urged governments to see private sector success as the foundation of national prosperity.
Elumelu who underscored the critical role of the private sector as the true engine of transformation, accounting for over 70% of Africa’s GDP and 80% of employment, also urged African leaders to create a sustainable environment to attract long-term investment.
Elumelu who was speaking while delivering the keynote address during the Abuja Business & Investment Summit & Expo 2025, which held at the Bola Ahmed Tinubu International Conference Centre Abuja on Wednesday, said “Predictable regulation attracts long-term investment, while inconsistency drives it away. He therefore urged governments to see private sector success as the foundation of national prosperity.
Citing his group’s transformative investments in the Federal Capital Territory, including the revitalisation of the Transcorp Hilton Abuja, the launch of the Transcorp Event Centre, and ongoing reforms in the Abuja Electricity Distribution Company (AEDC), Elumelu pointed out that these projects illustrate how purposeful private capital can power real development.
Speaking on the theme, “Empowering Sustainable Growth: Unlocking Potential in Emerging Markets”, he called for a new social contract between business and government, grounded in trust, transparency, and partnership, adding that sustainable progress requires policies that convert investor confidence into nation-building.
While advocating policy stability to champion the pivotal role of the private sector in unlocking Africa’s vast economic potential, Elumelu, who is also the Founder of the Tony Elumelu Foundation, reiterated that no nation has ever achieved sustained prosperity without a vibrant and virile private sector.
“Across Africa, the private sector contributes over 70% of our continent’s GDP and over 80% of total employment. But this is not just about numbers; it’s about influence and initiative. The private sector is reimagining what is possible on our continent,” he stated.
He noted that Africa’s transformation will be led by investing long-term in critical sectors to unlock and catalyze prosperity and opportunities for all.
“How can we expect foreign investors to invest in us, in our economies and countries, if we don’t invest in our own economies? Make your money, but please bring it and invest locally. It will be a huge disservice and act of unpatriotism to save your money in economies that already have so much,” Elumelu challenged participants during the event.
He took time to commend the Minister of the Federal Capital Territory, Nyesom Wike, and Minister of State FCT, Dr. Mahmoud Mariya, for the infrastructural drive within the FCT, emphasizing the importance of collaboration.
In her presentation, the Minister of State for the FCT, Dr. Mariya Mahmoud who expressed profound gratitude to Tony Elumelu and fellow investors for their faith in Abuja, reiterated the FCTA’s unwavering determination to intensify its infrastructural drive, ensuring the capital remains the premier investment destination in Nigeria and across the continent.
The annual ABISummit2025 serves as a critical platform to turn this ambitious vision into concrete partnerships and actionable strategies for empowering sustainable growth across Nigeria and the wider African continent.
FirstBank, the premier bank in West Africa and a leading financial inclusion service provider, has proudly announced the commencement of its 2025 Corporate Responsibility and Sustainability (CR&S) Week, scheduled to hold from 27 October – 1 November 2025.
Now in its ninth year, the annual event is a reflection of the Bank’s commitment to community empowerment, environmental stewardship, and the advancement of the United Nations Sustainable Development Goals (SDGs).
Through the ‘Start Performing Acts of Random Kindness’ (SPARK) initiative, FirstBank continues to build on its legacy of sowing seeds of kindness, with a focus on uplifting communities and reducing environmental impact. During CR&S Week, the Bank mobilises employees across the FirstBank Group, including FirstBank Nigeria, FirstBank UK, FirstBank Gambia, FirstBank Sierra Leone, FirstBank DRC, FirstBank Guinea, FirstBank Ghana, FBNBank Senegal, First Pension, and First Nominees, to dedicate their time and resources to meaningful causes aligned with the Bank’s sustainability strategy.
Commenting on the week-long event, Acting Group Head, Marketing & Corporate Communications at FirstBank, Olayinka Ijabiyi, said, “CR&S Week is a call to action. It is about showing up for humanity, being kind to one another, and proving that even the smallest act can ripple into lasting change. FirstBank believes that kindness is a currency that never devalues, and that is why every year since 2017, staff have gone the extra mile to give back to the communities through its SPARK initiative, while also encouraging people to perform acts of random kindness.”
The Bank plans to plant at least 20,000 trees within the week in partnership with the Nigeria Conservation Foundation (NCF), in the final phase of its support for the Nigeria’s 2060 decarbonisation agenda. This effort builds on the Bank’s pledge to plant 50,000 trees by 2025, with 31,000 trees successfully planted over the past two years.
Additionally, in line with FirstBank’s commitment to achieving the United Nations Sustainable Development Goal 5 (SDG) of women empowerment, the Bank will collaborate with Borno and Katsina States to raise and provide medical interventions (including surgeries and post-care kits) for women living with Vesicovaginal Fistula (VVF).
Throughout the week, FirstBank staff will be inspired to share messages of kindness, fostering a culture of compassion, civility, and empathy across the Bank. The programme will feature themed webinars centered on the SPARK initiative, as well as school engagements designed to instill the values of generosity and social responsibility in younger generations. The week will culminate in visits to orphanage homes, internally displaced persons (IDP) camps, and charitable organisations across Nigeria, sub-Saharan Africa, and the UK, demonstrating kindness and empowering those at the bottom of the pyramid.
These initiatives epitomise FirstBank’s care for the environment and humanity, aligning with the Bank’s sustainability strategic pillars and support for the Green Recovery Nigeria
Since the first edition in 2017, FirstBank’s CR&S Week has spotlighted the Bank’s corporate citizenship interventions driving positive social impact, sustainability, and community engagement. Over the years, it has evolved into a platform that mobilises stakeholders and non-customers alike across its global network to champion causes that uplift lives, protect the environment, and promote inclusive development. FirstBank is encouraging and inspiring individuals to go beyond their everyday routines and perform acts of random kindness.
