In a strong show of confidence, shareholders of Fidelity Bank Plc have expressed their readiness to support and mobilize resources for the bank’s ongoing recapitalisation efforts. The shareholders, united under Nigeria’s leading shareholders’ associations, have praised the bank’s resilience and its track record of delivering significant dividends and capital gains.
Shareholders from associations such as the Independent Shareholders Association of Nigeria (ISAN), Association for the Advancement of Rights of Nigerian Shareholders (AARNS), and the Pragmatic Shareholders Association of Nigeria have all pledged to participate in any forthcoming share offering by the bank. They highlighted Fidelity Bank’s promising future for above-average returns as a key motivation for their support.
The endorsements from the shareholders align with market expectations that Fidelity Bank will successfully raise the additional funds needed to maintain its status as one of Nigeria’s leading commercial banks with international authorisation. With nearly 400,000 shareholders, Fidelity Bank boasts the most diversified retail shareholder base among Nigerian banks, enhancing its market credibility.
![Fidelity Bank](https://fasnewsng.com/wp-content/uploads/2023/03/fidelity-300x38.jpg)
Fidelity bank’s diversified shareholding structure, while presenting challenges in corporate register management and stock volatility, underscores Fidelity Bank’s popularity and the pricing efficiency of its stock. This ensures that the share price accurately reflects the bank’s fundamentals and investor expectations.
Over the past five years, Fidelity Bank has achieved an average annual return of more than 81%, significantly outperforming other major market indices. This performance has solidified shareholders’ loyalty and optimism about the bank’s potential in the evolving Nigerian financial services sector.
National Coordinator of ISAN, Mr. Moses Igbrude, praised the bank’s consistent growth and urged the board to continue its commitment to good corporate governance. Similarly, Dr. Faruk Umar, President of AARNS, commended the bank’s strong corporate governance structure, which reassures investors about the safety of their investments. He also highlighted the successful acquisition of Union Bank UK as a testament to Fidelity Bank’s financial strength.![Fidelity Bank](https://fasnewsng.com/wp-content/uploads/2022/11/pngroyale.com-Fidelity-Bank-Nigeria-Logo-256x300.png)
![Fidelity Bank](https://fasnewsng.com/wp-content/uploads/2022/11/pngroyale.com-Fidelity-Bank-Nigeria-Logo-256x300.png)
Mrs. Bisi Bakare, National Coordinator of the Pragmatic Shareholders Association of Nigeria, noted the bank’s impressive growth despite economic challenges, citing the doubling of pre-tax profit in 2023 to N124.2 billion and substantial increases in deposits and total assets. She expressed confidence that the bank’s rights issue would be oversubscribed, given its robust performance history.
Mr. Boniface Okezie, National Coordinator of the Progressive Shareholders Association of Nigeria, lauded the bank’s balance sheet and the consistent returns it has provided to shareholders. He emphasized the bank’s solid fundamentals, good corporate governance, and excellent customer service as reasons for a promising future.
The bank’s interim report for the first quarter of 2024 further supports these positive outlooks, showing gross earnings up by 89.9% to N192.1 billion and a 120% increase in profit before tax to N39.5 billion compared to the same period in the previous year. This growth is attributed to a higher yield environment, strong earning assets, and increased customer transactions.
![Fidelity Bank](https://fasnewsng.com/wp-content/uploads/2023/06/IMG-20230427-WA0124-200x300.jpg)
Nneka Onyeali-Ikpe
As Fidelity Bank embarks on its recapitalisation journey, the overwhelming support from its shareholders and its consistent performance signal a strong and promising future for the bank in Nigeria’s financial landscape.
By Lekan Olofinsusi
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