Connect with us

Business

Fidelity Bank outperforms banks, stock market with 507% gain in 5 years

Published

on

 

Investors in Fidelity Bank Plc have earned more than 507 per cent in capital gains over the past five years, ranking above all other major return benchmarks at the Nigerian stock market and the entire banking sector.

Trading reports at the Nigerian stock market for the five-year period between May 31, 2019 and May 31, 2024 showed that Fidelity Bank outperformed all key indices at the stock market.

Fidelity Banks share price rose by 507.14 per cent over the period, representing average annual capital gain of 101.43 per cent.

These returns underscore Fidelity Banks immense value as a stock for all times, helping investors to hedge against inflation while preserving significant long-term value.
With 507 per cent capital gain in five years and average annual gain of more than 100 per cent, the return analysis implies that investment in Fidelity Bank is more attractive than other class of assets, including fixed-income securities such as government and corporate bonds; real estate investment and mutual funds among others.

The high divisible nature of shares investment and high free float of Fidelity Bank, which makes the banks shares easily available, underline the bank as a most attractive investment option for all cadres of investors- small, medium and high networth; retail and institutional investors.

Comparative analysis showed that Fidelity Bank outperformed all other major market indices with the banks average annual return for the period twice the average return by the overall market and almost four times of average return in the banking sector.

The All Share Index (ASI) – the common, value-based index that tracks all share prices at the Nigerian Exchange (NGX), which is widely regarded as Nigerias benchmark for equities market, recorded a five-year return of 219.61 per cent, an average annual return of 43.9 per cent.

Contrary to the significantly above average performance of Fidelity Bank, the NGX Banking Index-which tracks the banking sector, doubled by 120.53 per cent over the five-year period, representing average annual return of 24.11 per cent, more than 77 percentage points below Fidelity Banks average return.

Two other major price indices- the NGX 30 Index and NGX Main Board Index, recorded five-year cumulative return of 185.73 per cent and 265.6 per cent respectively, representing average annual gain of 37.15 per cent and 53.1 per cent respectively.

The NGX 30 Index tracks share prices of the 30 largest companies at the stock market while the NGX Main Board Index represents the largest and most diversified group of listed companies at the stock exchange. Fidelity Bank is quoted on the main board, like most other major banks and companies at the stock market.

The average annual return of 101.43 per cent underlines that Fidelity Bank provides substantial return for investors, even where such investors had borrowed money at the ruling interest rate and the invested fund was adjusted for impact of inflation rate.

Nigerias inflation rate peaked at a high of 33.69 per cent in April 2024 while the Central Bank of Nigeria (CBN)s Monetary Policy Committee (MPC) recently increased the Monetary Policy Rate (MPR), otherwise known as benchmark interest rate, to 26.25 per cent.

Fidelity Banks share price, which closed May 31, 2019 at N1.68 per share, rose successively to N10.20 per share by the end of May 2024. The ASI had, during the period, rose from its opening index of 31,069.37 points to close weekend at 99,300.38 points. The NGX Banking Index rose from 361.57 points to 797.37 points. The NGX 30 Index, which opened the period at 1,286.68 points, closed the period at 3,676.44 points. The NGX Main Board Index appreciated from 1,267.54 points to close weekend at 4,634.31 points.

Market analysts are unanimous that share prices are illustrative of the fundamental values of quoted companies.

Managing Director, HighCap Securities Limited, Mr. David Adonri, said the price of any stock in the market is a correct reflection of the market value for the stock.

Managing Director, Globalview Capital Limited, Mr. Aruna Kebira, explained that the market price of a stock represents the disposition of the investing public to the stock at a given period, noting that there should be consideration for both the market value and the book value or fundamentals of a stock.

It could be summarized that the market price of a stock is premised on the psychology of the market, the markets mood as well as market sentiments, Kebira said.

Chief Executive Officer, Sofunix Investment and Communications, Mr. Sola Oni, said the stock market shows both the current and future prospects of shares.

Share price reflects the current value of a company but also reveals the future prospects, Oni said, noting that investment analysts traditionally combine market price and book values to determine the possible outlook of a stock.

Five-year review of the audited reports and accounts of Fidelity Bank showed strong correlation between the banks upwardly share pricing trend and expansive growth in its business operations.

The banks pre-tax profit had risen from N30.35 billion in 2019 to N124.26 billion in 2023, an increase of 309.4 per cent. Net profit after tax also grew by 203.3 per cent from N42.80 billion in 2019 to N129.80 billion in 2023. Earnings per share has risen successively from 98 kobo in 2019 to N3.11 per share in 2023.

The banks balance sheet had expanded by 195.26 per cent from N2.11 trillion in 2019 to N6.23 trillion in 2023, within the fastest growth in the industry. Customers deposits, which underlines the competitive market share, more than tripled from N1.225 trillion in 2019 to N4.01 trillion in 2023, an increase of 227.35 per cent. Shareholders funds had also grown from N234.03 billion to N437.31 billion.
Market pundits expected Fidelity Banks share price continue to rise, citing several factors that illustrated the upside potential for the stock.

Independent investment research reports by many market pundits showed that Fidelity Bank was assigned buy ticker, a recommendation to investors to consider the potential attractive returns of the bank.
The research reports were based on the historical and current operational performances of the bank as well as the clear-sighted implementation of the banks growth plan. The reports also considered the quality of board and management and the general human capital and resources of the bank.

The investment advisory reports included those of Afrinvest Group, FSDH Capital and CardinalStone among others.

Analysts were unanimous that Fidelity Banks share price could double in the period ahead given professional assessment of top traditional performance parameters including the companys operational reports, investors preference and projections.

Already, interim report and account of the bank for the first quarter ended March 31, 2024 showed that the bank started the current business year on stronger footing with three-digit growths across key performance indicators.

The three-month report, released at the NGX, showed that gross earnings increased by 89.9 per cent to N192.1 billion in first quarter 2024.

The banks top-line performance continued to be driven by broad-based growths across income lines with interest income rising by 90.7 per cent and non-interest income growing by 84 per cent in first quarter 2024.
Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, foreign exchange (forex)-related income, trade, banking services, and remittances, supported by increased customer transactions.

Profit before tax doubled by 120 per cent to N39.5 billion in first quarter 2024 as against N17.9 billion in first quarter 2023. The banks performance was driven by expanding market share with total deposit rising by 17 per cent within the three months to N4.7 trillion, compared with N4 trillion recorded at the end of 2023. The bank also increased its supports for national economic growth with net loans and advances rising by 21 per cent from N3.1 trillion at the end of 2023 to N3.7 trillion by March 2024.

Continue Reading
Advertisement

Business

Infrastructure Upgrade: Zenith Bank Apologizes for Disruptions, Assures Customers on Improved Services

Published

on

ZENITH BANK MAINTAINS LEADING POSITION IN PROFITABILITY AS PBT SOARS TO N727 BILLION IN H1 2024 RESULT

 

Infrastructure Upgrade: Zenith Bank Apologizes for Disruptions, Assures Customers on Improved Services

 

 

 

Nigeria’s leading financial institution, Zenith Bank, has reassured its customers of improved services following recent infrastructure upgrades.

In a message posted on Thursday, the bank apologised for the service disruptions experienced across its e-channels during the upgrade period.

The bank clarified that the glitches were a result of routine information and technology maintenance, which is essential for optimizing service delivery.

Zenith Bank emphasized its commitment to ensuring 100% uptime, stating that it takes this responsibility “very personally” and continuously allocates resources to maintain uninterrupted service availability.

In the statement, the bank expressed its sincere apologies for any inconvenience caused to customers during the upgrade process, highlighting that the information technology enhancements are designed to improve the quality of service for its esteemed clientele.

The message reads in part:

Dear Valued Customer,

We sincerely apologise for the service disruptions you experienced recently on our banking channels. This was due to an information Technology upgrade aimed at improving the quality of service we provide.

We have made significant progress with the upgrade and you can now perform transactions conveniently with the following Zenith bank Channels:

Your Zenith Bank Debit Card
The Zenith Bank Mobile App
The Zenith bank Internet Banking Platform
Zenith Agents nationwide (Agent Banking)

You can also visit any of our branches nationwide to perform your transactions

Please direct all enquiries to Zenith Direct on +234 201 278 7000,
0700ZENITHBANK, 0904 085 7000 Or via email at [email protected]

Thank you for banking with us

Continue Reading

Business

FANAFILLIT sets to Unite hearts and transform lives with GLOWFUX 2024

Published

on

FANAFILLIT sets to Unite hearts and transform lives with GLOWFUX 2024

FANAFILLIT sets to Unite hearts and transform lives with GLOWFUX 2024

 

 

Fanafillit Integrated Concepts, the visionary force behind the annual GLOWFUX Charity Concert, has revealed its ambitious plans for the 2024 edition. Slated for December, this year’s event aims to gather compassionate Nigerians for a powerful and heartwarming initiative, designed to bring joy to the lives of special children. The event promises not only world-class entertainment but also a deeply moving experience for all attendees.

 

 

In an official statement, Miss Rebecca Olaniyan, the Coordinator for the 2024 GLOWFUX Charity Concert, announced the theme: “UNITING HEARTS, TRANSFORMING LIVES.” This theme encapsulates the core purpose of the event—fostering unity through acts of love and compassion, resulting in profound and lasting change for both individuals and communities. “This theme underscores the concert’s mission of creating connections that inspire growth and empowerment,” Miss Olaniyan explained, as the concert continues its tradition of supporting children in orphanages and special needs homes.

The 2024 edition introduces a thrilling new twist with a change of venue to the historic National Museum, Onikan, Lagos. According to Mr. Olubode Mac Oserinde, initiator of the GLOWFUX Charity Concert and Team Lead at FANAFILLIT, this change is designed to offer guests an even richer experience. “With this year’s edition at the National Museum, GLOWFUX Charity Concert is set to elevate the event experience,” he noted. “The museum’s serene and culturally significant environment will add a new dimension to the event, ensuring that it not only entertains but also educates and enriches our guests.”

One of the key highlights of this year’s concert is the lineup of extraordinary young talents, aged between 7 and 16, who are poised to mesmerize the audience. Gospel sensation Feranmi Golden Angel, dynamic entertainer Vanessa Jones, proverb maestro Chief Adigun Olowe, and dexterious saxophonist Dom Sax will lead the entertainment. Their youthful exuberance and remarkable skills are sure to inspire both the children and adults in attendance, offering a unique perspective on how young minds can make a powerful impact.

Kicking off the day, the GLOWFUX Carpet session will run from 11:00 a.m. to 1:00 p.m., offering guests a glamorous and engaging introduction to the event. The main concert will then follow from 1:00 p.m. to 6:30 p.m., ensuring a day full of joy, laughter, and heartwarming moments.

This year’s concert will also feature the traditional induction of new GLOWFUX Young Ambassadors, a momentous occasion where young advocates are recognized for their commitment to making a difference. Additionally, the GLOWFUX Hall of Charity Awards will honor outstanding contributions to the community, with awards in the categories of GLOWFUX Man of the Year, GLOWFUX Woman of the Year, GLOWFUX NGO of the Year, and GLOWFUX Socially Responsible Corporate Brand of the Year.

 

FANAFILLIT sets to Unite hearts and transform lives with GLOWFUX 2024

In a significant addition to the program, attendees can look forward to an enriching motivational talk on the power of giving with love. The concert organizers are currently in discussions with Rotarian Femi Adenekan, Governor of Rotary District 9112, to deliver this insightful keynote address, which will further emphasize the concert’s message of generosity and kindness.

As always, the GLOWFUX Charity Concert is open to the public, inviting individuals to celebrate with the special children, who are treated as VIP guests. Attendees are encouraged to bring gift items for the children and to join in the spirit of giving.

The entertainment lineup for the day is brimming with excitement, with performances from talented young stars and appearances by Hilary Jackson and his Dance Group. First Class Comedy will provide comic relief, ensuring that the audience is treated to both inspiration and laughter. The event will be hosted by the dynamic duo of Princephelar and MC Luwy, while popular child-skitmaker Akorede is expected to make a special appearance as a celebrity guest.

The GLOWFUX Charity Concert is open to the public, inviting individuals to celebrate alongside the special children treated as VIP guests with complimentary food, drinks, and entertainment for everyone. Attendees are encouraged to bring gift items for the children and join in the spirit of giving. Guests can register at https://donate-ng.com/campaign/glowfux-2024 to secure their spot at this memorable event.

The 2024 GLOWFUX Charity Concert is supported by notable brands, including Elegushi Royal Stool, iCare Foundation, Courteville Solutions PLC, Seniors Wellbeing Foundation, Hands Lifting Hearts Initiatives, Danone, Seven-Up Bottling Company, Primero Transport Ltd, Fidson Healthcare, Beloxxi Biscuits, AkModel Properties, Corsican Brothers, KingsMead Group of Schools, MALENS Diagnostics, Headway Events, DJ MAPS Productions, Epee Tech Solutions, SIFAX group, and 3Zs Fabrics.

Media support will come from an array of respected outlets, including AIT, Global Excellence magazine, theeagleonline.com.ng, KRAKS TV, newspop.com, theelitesng.com, freedomonline.com.ng, PULSE NG, saharaweeklyng.com, thegazellenews.com, pmexpressng.com, freelanews.com, thecitypulsenews.com, societyreporters.com, theimpactnewspaper.com, thestatusng.blogspot.com, mockinbird.com.ng, omonaijablog.com.ng and others. This comprehensive media coverage ensures that the concert will reach a broad audience, amplifying its impact.

For those looking to contribute, the GLOWFUX Charity Concert offers numerous avenues for participation, partnership, and sponsorship.

For all inquiries related to participation, partnership, or sponsorship, please contact:
– 07085755549
– 07032312815
– 09159712472

To support this noble cause, donations can be made to:
Account Name: GLOWFUX Concert
Account Number: 8554972016
Bank: FCMB

GLOWFUX Charity Concert: Giving happily to live happily.

Continue Reading

Business

SIGNING CEREMONY OF THE STRATEGIC COOPERATION AGREEMENT BETWEEN DANGOTE INDUSTRIES LIMITED AND CHINA NATIONAL BUILDING MATERIALS GROUP CO. LIMITED

Published

on

SIGNING CEREMONY OF THE STRATEGIC COOPERATION AGREEMENT BETWEEN DANGOTE INDUSTRIES LIMITED AND CHINA NATIONAL BUILDING MATERIALS GROUP CO. LIMITED

SIGNING CEREMONY OF THE STRATEGIC COOPERATION AGREEMENT BETWEEN DANGOTE INDUSTRIES LIMITED AND CHINA NATIONAL BUILDING MATERIALS GROUP CO. LIMITED (CNBM) IN LAGOS ON WEDNESDAY, OCTOBER 2, 2024.

 

SIGNING CEREMONY OF THE STRATEGIC COOPERATION AGREEMENT BETWEEN DANGOTE INDUSTRIES LIMITED AND CHINA NATIONAL BUILDING MATERIALS GROUP CO. LIMITED

Continue Reading

Cover Of The Week

Trending