Fidelity Bank Plc has demonstrated an impressive average annual profit growth of 64 percent over the last three years, showcasing its resilience as one of Nigeria's fastest-growing companies.

The bank has also experienced substantial growth in its customer base and assets, with its total balance sheet expanding from N2.1 trillion to N6.2 trillion, making it the sixth largest in the Nigerian banking sector. This growth was primarily driven by a total deposit exceeding N4 trillion, which is also the sixth largest in the industry.

An analysis of Fidelity Bank's audited reports and accounts from 2023 to 2020 revealed consistent double-digit growth rates, with cumulative average annual growth rates in earnings, profitability, and assets significantly surpassing the industry average and ranking among the best-performing publicly quoted companies.

The 64 percent average annual profit growth rate highlights Fidelity Bank's solid foundation as an inflation-hedging investment.

The bank's operational growth enhances its overall return prospects, with its share price delivering an average annual capital gain of over 100 percent in the past five years on the stock market.

Numerous expert reviews have emphasized that the bank's impressive historical performance is a key attraction for its ongoing combined rights and public offer.

Fidelity Bank has announced a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share, as well as an offering of 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.

The acceptance and application lists for both the rights issue and public offer opened on Thursday, June 20, 2024, and are set to close on Monday, July 29, 2024. The rights issue has been pre-allotted on the basis of one new ordinary share for every 10 existing ordinary shares held as at the close of business on Friday, January 05, 2024.

Fidelity Bank's gross earnings have shown consecutive growth, from N206 billion in 2020 to N251 billion, N337 billion, and N556 billion in 2021, 2022, and 2023 respectively, with an average annual growth of 39 percent. Profit before tax has also increased consecutively from N28 billion in 2020 to N124 billion in 2023, while profit after tax rose from N26.65 billion in 2020 to N99.45 billion in 2023. Earnings per share has similarly grown from 92 kobo in 2020 to N3.11 in 2023, indicating potential for increased dividends to shareholders.

The bank's profitability has been fueled by a continuous increase in market share, a strong commitment to national economic growth, support for businesses, and high customer trust.

Fidelity Bank’s total assets has grown successively from N2.11 trillion in 2019 to N2.76 trillion in 2020 and consecutively to N3.28 trillion, N3.99 trillion and N6.23 trillion in 2021, 2022 and 2023 respectively. Shareholders’ funds have also grown successively from N234.03 billion in 2019 to N273.53 billion, N285.29 billion, N314.36 billion and N437.31 billion in 2020, 2021, 2022 and 2023 respectively.

Total deposit has grown by an average annual growth of 33 per cent from N1.7 trillion in 2020 to N4.02 trillion in 2023. A breakdown underlined a strong customer confidence with low-cost deposit accounting for 97.4 per cent of total deposit.

Low-cost deposit has grown at a faster CAGR of 44 per cent over the period, rising from N1.31 trillion in 2020 to N3.91 trillion in 2023. Savings accounts had also doubled over the period from N424 billion in 2020 to N881 billion in 2023, representing average annual growth rate of 28 per cent.

Fidelity Bank boasts over 8.0 million customers, with 5.1 million utilizing digital channels, highlighting the bank’s robust information and communication technology.

As the bank continues to gain the trust of its customers, it has also demonstrated a strong commitment to national economic growth, with an average annual growth of 32 percent in net loans. The net loans have seen significant growth, increasing from N1.32 trillion in 2020 to N1.66 trillion, N2.12 trillion, and N3.09 trillion in 2021, 2022, and 2023, respectively.

This substantial growth in loans reflects Fidelity Bank’s unwavering support for Nigerian businesses, making it the fifth largest loan portfolio in the Nigerian banking industry. Dr. Kamoru Yusuf, Founder of KAM Holding and a customer of the bank, commended Fidelity Bank for its exceptional support in the development of Nigerian companies.

Yusuf, whose group has evolved into a global business conglomerate operating in three countries across two continents, affirmed that KAM Holding has greatly benefited from financial assistance from Fidelity Bank. He emphasized that investing in Fidelity Bank would contribute to the growth of the Nigerian economy and companies like KAM Holding, the nation’s largest wholly indigenous metal and steel production company.

He highlighted the correlation between increased capital for a business-focused bank like Fidelity Bank and the overall development of the Nigerian economy. There are strong indications that the bank will maintain its impressive growth trajectory in the years to come.

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

The bank's financial report for the first quarter of 2024 revealed a significant increase in gross earnings, reaching N192.1 billion, representing an 89.9% growth. This growth was driven by a strong performance across various income streams, with interest income rising by 90.7% and non-interest income growing by 84%.

The surge in interest income was attributed to a favorable yield environment and a robust earning assets base, while the boost in non-interest income was fueled by double-digit growth in account maintenance charges, forex-related income, trade, banking services, and remittances, supported by increased customer transactions.

Furthermore, the bank's profit before tax doubled to N39.5 billion in the first quarter of 2024, marking a 120% increase from the same period in 2023.

This impressive performance was underpinned by an expanding market share, as total deposits surged by 17% to N4.7 trillion within the three-month period, compared to N4 trillion at the end of 2023.

Additionally, the bank intensified its support for national economic growth, with net loans and advances rising by 21% to N3.7 trillion by March 2024, up from N3.1 trillion at the end of 2023.