Fidelity Bank Plc has announced plans to conduct an Extra-Ordinary General Meeting (EGM) on Friday, August 11 to seek shareholder approval to increase its issued share capital from N16 billion to N22.6 billion in a move that would add 13.2 billion ordinary shares of 50 kobo each.
The EGM will also focus on the bank’s capital raising exercise through a public offer for up to 10 billion ordinary shares and a rights issue of up to 3.2 billion ordinary shares. These initiatives are designed to strengthen the bank’s financial position, facilitate expansion both domestically and internationally, and enhance its digital capabilities.
Analysts tracking the Nigerian Bourse have given Fidelity Bank’s stock a “BUY” rating, with Lagos-based Futureview research analysts encouraging investors to consider buying shares in the bank, projecting a return of at least 10 percent above the current market price over the next 12 months.
As of Tuesday, July 18, Fidelity Bank’s stock price closed at N7.50 per share, reflecting an impressive year-to-date return of +72.4 percent. This positive performance places the stock close to its 52-week high of N9.82, with a 52-week low of N2.87.
The bank’s strong growth trajectory and ambition to bolster profitability in an ever-evolving business landscape have been the driving forces behind these strategic decisions. Fidelity Bank emphasizes the need to remain agile, adaptable, and forward-looking, positioning itself to respond effectively to future developments while retaining its competitive edge.
Speaking about the expansion plan, the bank stated, “Advances in technology, the rapid evolution of the business of banking, and changes in the operating landscape make it imperative that the bank remains properly positioned to respond appropriately to developments, while remaining a competitive and forward-looking institution.”
At the bank’s 35th Annual General Meeting (AGM) held on Tuesday, May 23, shareholders praised the board and management for delivering exceptional performance in the full year 2022. According to the bank’s 2022 annual report, significant growth was achieved across all major indicators, with customer deposits rising by 27.4 percent to N2.6 trillion, net loans and advances increasing by 27.6 percent to N2.1 trillion, and total assets growing by 21.6 percent to N4 trillion.
The EGM is expected to be a pivotal moment for Fidelity Bank as it looks to embark on a path of expansion, technological advancements, and increased shareholder value. The bank’s commitment to seizing opportunities, adapting to changes, and maintaining its competitive edge positions it favorably for future growth and profitability.
With the listed companies’ half-year (H1) earnings season soon to commence, investors and stakeholders eagerly anticipate the outcomes of Fidelity Bank’s bold expansion plan and the potential impact on the Nigerian financial sector.
Access Bank, Others Collect N154 Billion in Electronic Banking Fees in H1’23, a 16.7% YoY Surge
In the first half of 2023, customers of Nigeria’s top nine commercial banks paid a whopping N154 billion in fees for utilizing electronic banking services, reflecting a robust 16.7% year-on-year increase compared to H1’22’s N131.97 billion.
The data, extracted from the financial statements of these banks, underscores the escalating trend of Nigerians embracing electronic payment channels.
Leading the pack in revenue generation from these fees is Access Bank, amassing N43.9 billion, followed by United Bank for Africa Plc (N51.07 billion), Zenith Bank (N22.27 billion), Guaranty Trust Bank (N21.2 billion), and others like Stanbic IBTC (N2.14 billion), First City Monument Bank (N7.4 billion), Unity Bank (N1.96 billion), Fidelity Bank (N1.85 billion), and Wema Bank (N3.13 billion).
Electronic banking services encompass a gamut of options, including internet banking, mobile banking, ATMs, and Point of Sale (PoS) systems.
Recent data from the Nigerian Interbank Settlement System (NIBSS) for Q1’23 indicates a substantial surge in electronic transactions.
Transaction volume increased by 209% YoY to 4.7 billion, and transaction value grew by 48% YoY to N137.52 trillion.
The nine banks collectively raked in N66.7 billion in account maintenance fees and commissions during H1’23, reflecting a 14.7% YoY rise.
Zenith Bank led this category with N21.02 billion, trailed by Access Bank (N13.36 billion), Guaranty Trust Bank (N10.5 billion), and United Bank of Africa (N9.6 billion).
Overall, the banks’ cumulative net fees and commission income registered a substantial 20.7% YoY growth, reaching N448.47 billion in H1’23 from N371.43 billion in H1’22.
Access Holdings Posts 52.6% Profit for the First Half of the Year
Parent Company of Access Bank Celebrates Remarkable Financial Performance in H1’23
Access Holdings Plc, the parent company of Access Bank, has reported a 58.9 percent surge in gross revenue to N940.3 billion for the first half of 2023.
The financial services giant also recorded remarkable growth in Profit Before Tax (PBT) and Profit After Tax (PAT) at 71.4 percent and 52.6 percent, respectively, culminating in N167.6 billion for PBT and N135.4 billion for PAT during the same period.
These financial milestones were unveiled as part of Access Holdings’ Audited Consolidated and Separate Financial Statements for the period concluding on June 30, 2023.
The driving force behind this unprecedented growth can be attributed to a potent combination of factors. A 63.0 percent growth in interest income and a 51.9 percent increase in non-interest income fueled the surge in gross revenue.
Access Holdings also witnessed a 35 percent year-to-date growth in customer deposits, capping the first half of 2023 at an impressive N12.5 trillion. This remarkable achievement encompassed all business segments, reinforcing the Group’s status as Nigeria’s largest financial institution by total assets.
The company’s total assets grew by 39.0 percent year-on-year to N20.9 trillion while shareholders’ funds surged by 40.6 percent to N1.7 trillion.
These astounding figures underline the Group’s ability to generate value from a diversified business portfolio, spanning banking, asset management, and payment services.
Herbert Wigwe, the Group Chief Executive Officer of Access Holdings Plc, commented on the company’s positive performance, saying, “Our growth plans for the African continent remain firm and clear, driven by the strong long-term growth prospects and trade opportunities seen across many of the countries.”
He went on to emphasize the company’s commitment to its 5-year cyclical strategy, stating, “Our primary objective remains to transform Access Holdings Plc into a leading financial and ecosystem player, fostering opportunities for shared prosperity among all stakeholders.”
Central Bank of Nigeria Postpones 293rd Monetary Policy Committee Meeting
The Central Bank of Nigeria (CBN) has announced the postponement of its 293rd Monetary Policy Committee (MPC) meeting, originally scheduled for September 25th and 26th, 2023.
Dr. Isa AbdulMumin, the bank’s Director of Corporate Communications, released a statement on Thursday confirming the decision.
In the statement, Dr. AbdulMumin stated, “The Monetary Policy Committee of the Central Bank of Nigeria has deferred its 293rd meeting, which was initially planned for Monday and Tuesday, September 25th and 26th, 2023, respectively. A new date will be communicated in due course. We regret any inconvenience this change may cause our stakeholders and the general public.”
While the CBN did not provide an official reason for the postponement, some industry experts suggest it may be related to the pending approvals for the newly appointed governor and deputy governors of the bank.
President Bola Tinubu recently nominated Yemi Cardoso as the potential head of the CBN. Additionally, Tinubu has endorsed the nominations of four new deputy governors for the apex bank, who are expected to serve for an initial term of five years, pending confirmation by the Senate.
The nominated deputy governors are Emem Usoro, Muhammad Abdullahi-Dattijo, Philip Ikeazor, and Bala Bello. However, the appointment of the CBN governor is contingent upon Senate confirmation, which is currently on a yearly recess.
The CBN assures stakeholders and the public that the rescheduled MPC meeting date will be communicated promptly as soon as it is confirmed.
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