Fidelity Bank share price appreciates by 297% in 13 years

By Ginika Okoye

Fidelity Bank Plc share price has recorded a 297 per cent growth on the Nigerian Exchange Ltd (NGX) in the last 13 years.

The News Agency of Nigeria (NAN) reports that data from the NGX showed that the bank’s share price grew by 297 per cent from N2.52 in January 2010 to N10 in March 2023.

According to data from NGX on Monday, the bank’s share price as at April 25, 2024 stood at N9.00 per share as the bank traded N12.642 million shares valued at N112.071 billion in 246 deals.

The data said that Fidelity Bank’s market capitalisation as at April 25, also stood at N288.11 billion, average volume N11.76 million, share outstanding was N32.01 billion while free float was N31.72 billion.

”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.

”The bank has continued to post commendable financial performance every quarter as it cements its position among 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 NGX,” it said.

The data said that analysis had shown 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 per cent annual growth.

The report also said the bank’s growth in profits was 81.6 per cent in net interest income to N277.4bn.

This it said was driven by a 55.5 per cent increase in interest income which reflected a steady rise in asset yield throughout the year.

The data said the total customer deposits crossed the four trillion naira mark as deposits grew by 55.6 per cent from N2.6tn in the 2022 financial year (FY).

”The increase was driven by 81.1 per cent 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.

”This is a 70.0 per cent 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 will pay dividends,” the data said.

Reacting to the growth, some analysts said the bank’s share price underlined its earnings growth and financial performance as higher dividend yields and future earnings forecasts had triggered demand in the money lender’s shares.

Ambrose Omordion, the Chief Research Officer at Investdata Consulting Limited, said this was the best time for Fidelity bank as the bank’s share price was doing well among its peers.

”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,” Omordion said.

Another analyst, Prince Anthony Omojola, the National Coordinator, Independent Shareholders Association of Nigeria (ISAN), said that Fidelity Bank was moving up in terms of performance.

Mr Sam Ndata, the Doyen of Nigerian Stockbrokers Securities Limited said the development was welcomed.

”This is a good development. If a company performs well, it will surely be rewarded to earn investors’ confidence,” he said.

Mr Boniface Okezie, the National Coordinator, Progressive Shareholders Association of Nigeria, said the bank had paid its dues in the financial services sector.

Okezie said the bank had contributed to the development of the Small and Medium Enterprises (SMEs) sector yet paid dividends to the shareholders. (NAN) (www.nannews.ng)

Edited by Ese E. Eniola Williams