Fidelity Bank’s recapitalization plan has been approved by shareholders.

Femi Onasanya
3 Min Read

A large number of shareholders have indicated that they are willing to mobilise and assist the ongoing recapitalization of Fidelity Bank Plc.

 

According to shareholders, the bank has proven its ability to withstand setbacks and has showed its commitment to investors by paying out sizable dividends and capital gains.

 

Under the aegis of the top shareholder associations in Nigeria, investors declared they would participate in any share offering made by Fidelity Bank because they saw the bank as having a promising future with above-average profits.

 

The support from a variety of shareholders confirmed what market analysts had predicted—namely, that Fidelity Bank would have no trouble raising more money and maintaining its position as one of Nigeria’s top commercial banks with international authorization.

 

Moses Igbrude, national coordinator of the Independent Shareholders Association of Nigeria (ISAN), stated that Fidelity Bank has demonstrated to investors that they can rely on it for returns and sustained growth.

 

Fidelity Bank is a promising bank that is expanding naturally, taking care of its market share and specialisation. Igbrude urged the board to “keep ingraining good corporate governance in order to sustain this growth.”

 

According to Dr. Faruk Umar, President of the Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Fidelity Bank has had very positive performance over the years.

 

According to Boniface Okezie, national coordinator of the Progressive Shareholders Association of Nigeria (PSAN), Fidelity Bank has given shareholders strong returns in the form of dividends.

 

With three-digit growth across key performance measures, the bank began the new business year on firmer footing, according to the interim report and account for the first quarter ending March 31, 2024.

 

According to the three-month report made available at the NGX, gross earnings for the first quarter of 2024 surged by 89.9% to N192.1 billion. In the first quarter of 2024, interest income increased by 90.7%, while non-interest revenue grew by 84%. These broad-based growths across income lines continued to power the bank’s top-line success.

 

Compared to the N17.9 billion in the first quarter of 2023, profit before tax doubled to N39.5 billion in the first quarter of 2024, a 120% increase.

 

The bank’s growth was fueled by growing its market share; in just three months, total deposits increased by 17% to N4.7 trillion, from N4 trillion at the end of 2023.

 

By March 2024, the bank’s net loans and advances had climbed by 21% from N3.1 trillion at the end of 2023 to N3.7 trillion, demonstrating its increasing support for the growth of the national economy.

 

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