Shareholders Back Fidelity Bank’s Recapitalisation Effort
Shareholders of Fidelity Bank Plc have expressed robust support for the bank’s ongoing recapitalisation plan. At the recent annual general meeting, shareholders indicated their willingness to participate in any forthcoming share offerings by the bank.
Fidelity Bank, classified as a commercial bank with international authorisation by the Central Bank of Nigeria (CBN), is required to meet the N500 billion capital base stipulated by the apex regulator.
Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria, lauded Fidelity Bank’s sustainable growth and commitment to delivering returns. “Fidelity Bank is a promising bank that is growing organically; it is servicing its niche and share of the market. My appeal to the board is to continue to imbibe good corporate governance to sustain this growth,” Igbrude stated.
Dr Faruk Umar, President of the Association for the Advancement of Rights of Nigerian Shareholders, highlighted the bank’s impressive performance over the years, particularly noting the successful acquisition of Union Bank UK. “The bank has since joined the league of banks paying an interim dividend, which shareholders are happy with. The appointment of Dr Nneka Onyeali-Ikpe as the group managing director indicates that the bank has good succession planning in place. The calibre of the independent non-executive directors on the board gives shareholders strong confidence in the kind of board oversight they will be expecting,” he remarked.
Umar further expressed confidence in the upcoming rights issue offer, asserting, “Now that the bank is coming out with a rights issue offer, we are very confident shareholders will take their rights, and we are sure the bank will meet the recapitalisation requirement set out by the Central Bank of Nigeria.”
Mrs Bisi Bakare, National Coordinator of the Pragmatic Shareholders Association of Nigeria, praised the bank’s consistent performance. “Despite various challenges and economic uncertainty, Fidelity Bank weathers the storm with strong performances,” she noted.
Fidelity Bank’s first quarter interim report revealed significant growth across key performance indicators. The report, released on the Nigerian Exchange Group (NGX), showed gross earnings increased by 89.9 per cent to N192.1 billion in the first quarter of 2024. Interest income rose by 90.7 per cent, while non-interest income grew by 84 per cent. This growth was attributed to a higher yield environment and a strong asset base, alongside double-digit growth in account maintenance charges, foreign exchange-related income, trade banking services, and remittances, supported by improved customer transactions.
Profit before tax surged by 120 per cent to N39.5 billion in the first quarter, compared to N17.9 billion in the same period in 2023.
