Managing Director, Fidelity Bank Plc, Dr Nneka Onyeali-Ikpe, has reiterated the commitment of the bank to delivering impressive returns to shareholders and supporting the growth of the Nigerian economy.
Addressing the investing public on the bank’s combine right and public offering, she explained that the new capital raising by Fidelity Bank was driven by its proactive business expansion plan having secured shareholders’ approval to raise new equity funds as early as August 2023 while the Central Bank of Nigeria (CBN)’s directive on new minimum capital was released in March 2024.
“The offer will increase our capacity to support our customers and their businesses. In summary, this capital raise will help our customers to grow, their businesses to thrive, and their economy to prosper,” Onyeali-Ikpe said.
She assured that with its groundswell of support from enthusiastic shareholders, customers and stakeholders, the bank is on course to achieving the N500 billion new minimum capital base, which will clearly confirm the bank, beyond any doubt, as one of the biggest banks in Nigeria.
Onyeali-Ikpe noted that being the first bank to launch an offer out of the many banks in Nigeria after the CBN directive, Fidelity Bank has shown again to be a pace-setter.
According to her, Fidelity Bank seeks the CBN recapitalization directive as a significant opportunity for a stronger and more resilient banking industry.
“We have embraced the challenge as a catalyst to propel us, towards a long-term vision of becoming a market leader across every product that we offer and segment that we sell, not just in Nigeria, but as an international bank,” she said.
She said the proceeds from the N127.10 billion capital raising exercise would be instrumental in achieving its strategic growth plan.
She highlighted that the funds, firstly, would be deployed to drive business growth and regional expansion.
“We will strategically expand our footprints within and outside Nigeria to serve as a broader customer base and to unlock new market opportunities.
“Secondly, we will have what we call technological transformation. We are committed to leveraging proprietary technology to improve operational efficiency and deliver exceptional customer service.
“Thirdly, we intend to diversify and grow. By investing in information technology (IT) infrastructure and product distribution channels, we will aim to diversify our earnings base through digitalization and business expansion,” Onyeali-Ikpe said.
She said the management recognised the importance of investors and are committed to delivering value to them as well.
“Our track record of accelerated growth and consistent dividend payment is a testament to this,” she added.
Commenting on the bank’s offer, Founder, KAM Holding, Dr Kamoru Yusuf, said Fidelity Bank has shown to be an exceptional bank with focus on the development of Nigerian economy and companies.
He said investing in Fidelity Bank will be an investment in the growth of the Nigerian economy and companies like KAM Holding, the nation’s largest wholly indigenous metal and steel production company.
Yusuf, whose group has metamorphosed into a global business conglomerate operating in three countries across two continents, confirmed that KAM Holding has benefited immensely from financial support from Fidelity Bank.
Yusuf, who was physically present at a session at the NGX to present “facts behind the offer” to the investing public, underlined the relationship between increased capital for a business-focussed bank like Fidelity Bank and the overall development of the Nigerian economy.
A recent review had shown that Fidelity Bank outperformed all major market indices for measuring returns at the Nigerian stock market, with the bank’s average annual return over the past five years twice the average return by the overall market and almost four times of average return in the banking sector.
A review of official trading reports at the Nigerian stock market showed that investors in Fidelity Bank have earned more than 507 per cent in capital gains over the past five years, between May 31, 2019 and May 31, 2024
Fidelity Bank’s share price rose by 507.14 per cent over the period, representing average annual capital gain of 101.43 per cent. This significantly exceeds all other major return benchmarks, including the banking sector.
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 classes of assets, including fixed-income securities such as government and corporate bonds; real estate investment and mutual funds among others.
These returns underscore Fidelity Bank’s immense value as a stock for all times, helping investors to hedge against inflation while preserving significant long-term value.
