Lagos, Nigeria- Fidelity Bank Plc has recorded an impressive average annual profit growth of 64 percent over the past three years, cementing its status as one of Nigeria’s fastest-growing financial institutions.
The bank’s rapid expansion in customer base and assets has propelled its total balance sheet size from N2.1 trillion to N6.2 trillion, ranking it as the sixth largest in the Nigerian banking industry. This growth has been driven by a substantial total deposit of more than N4 trillion, also the sixth largest in the sector.
An analysis of Fidelity Bank’s audited reports from 2020 to 2023 reveals double-digit growth in earnings, profitability, and assets, with a cumulative average annual growth rate (CAGR) significantly above the industry average and among the best performances by publicly quoted companies. The 64 percent average annual profit growth underscores Fidelity Bank’s fundamental strength as a resilient and inflation-hedging investment. This operational growth has strengthened the bank’s overall return outlook, with its share price delivering an average annual capital gain of over 100 percent in the past five years on the stock market.
Financial experts attribute the bank’s robust historical performance to its attractiveness for ongoing rights and public offers. Fidelity Bank is currently offering a rights issue of 3.2 billion ordinary shares at N9.25 per share, alongside a public offer of 10 billion ordinary shares at N9.75 per share. The acceptance and application for these offers opened on June 20, 2024, and will close on July 29, 2024. The rights issue has been pre-allotted on the basis of one new share for every 10 existing shares held as of January 5, 2024.
Fidelity Bank’s gross earnings rose successively from N206 billion in 2020 to N556 billion in 2023, representing an average annual growth of 39 percent. Profit before tax increased from N28 billion in 2020 to N124 billion in 2023, while profit after tax jumped from N26.65 billion to N99.45 billion during the same period. Earnings per share grew from 92 kobo in 2020 to N3.11 in 2023, indicating potential for increased dividends to shareholders.
The bank’s total assets grew from N2.11 trillion in 2019 to N6.23 trillion in 2023. Shareholders’ funds also increased from N234.03 billion in 2019 to N437.31 billion in 2023. Total deposits grew by an average annual rate of 33 percent from N1.7 trillion in 2020 to N4.02 trillion in 2023. Notably, low-cost deposits, which account for 97.4 percent of total deposits, grew at a CAGR of 44 percent from N1.31 trillion in 2020 to N3.91 trillion in 2023. Savings accounts also doubled during this period, rising from N424 billion to N881 billion, with an average annual growth rate of 28 percent.
Fidelity Bank now boasts over 8 million customers, with 5.1 million on digital channels, highlighting the bank’s robust information and communication technology infrastructure. This growth has been matched by an aggressive commitment to national economic development, with net loans growing at an average annual rate of 32 percent from N1.32 trillion in 2020 to N3.09 trillion in 2023. The bank’s loan portfolio is the fifth largest in the Nigerian banking industry.
Dr. Kamoru Yusuf, Founder of KAM Holding, praised Fidelity Bank for its exceptional support for Nigerian businesses, confirming that his company has greatly benefited from the bank’s financial assistance. Yusuf noted that investing in Fidelity Bank equates to investing in the growth of the Nigerian economy and companies like KAM Holding, the nation’s largest wholly indigenous metal and steel production company.
Interim reports for the first quarter of 2024 indicate that Fidelity Bank is set to sustain its impressive growth. Gross earnings for the quarter increased by 89.9 percent to N192.1 billion, driven by a 90.7 percent rise in interest income and an 84 percent increase in non-interest income. Profit before tax doubled by 120 percent to N39.5 billion, supported by a 17 percent rise in total deposits to N4.7 trillion.
Fidelity Bank’s continuous market expansion and strong financial performance position it as a leading force in the Nigerian banking industry.
