Fidelity Bank Plc has recorded an impressive 507% increase in capital gains over the past five years, significantly outperforming all other major indices in the Nigerian stock market and the banking sector.
From May 31, 2019, to May 31, 2024, Fidelity Bank’s share price rose from N1.68 to N10.20, an annualized growth rate of 101.43%. This remarkable performance highlights the bank as a valuable investment, offering returns that exceed those from fixed-income securities, real estate, and mutual funds.
In comparison, the Nigerian Exchange (NGX) All Share Index (ASI), the primary indicator of overall market performance, grew by 219.61% over the same period, averaging an annual return of 43.9%. The NGX Banking Index, which reflects the banking sector’s performance, increased by 120.53%, or 24.11% annually. Other significant indices, the NGX 30 Index and NGX Main Board Index, reported gains of 185.73% and 265.6%, respectively, translating to average annual returns of 37.15% and 53.1%.
Market analysts attribute Fidelity Bank’s robust performance to its strategic growth and operational efficiency. The bank’s pre-tax profit surged by 309.4%, from N30.35 billion in 2019 to N124.26 billion in 2023. Net profit after tax rose by 203.3% to N129.80 billion in the same period, with earnings per share climbing from 98 kobo to N3.11.
Fidelity Bank’s balance sheet also expanded significantly, with total assets increasing by 195.26% from N2.11 trillion in 2019 to N6.23 trillion in 2023. Customer deposits grew by 227.35% to N4.01 trillion, indicating strong market confidence and a growing customer base.
Investment research firms such as Afrinvest Group, FSDH Capital, and CardinalStone have consistently rated Fidelity Bank as a “buy,” emphasizing the bank’s solid fundamentals, strategic management, and potential for continued growth.
The bank’s recent quarterly report for Q1 2024 further underscores its strong performance, with gross earnings rising by 89.9% to N192.1 billion, and profit before tax increasing by 120% to N39.5 billion. The growth was driven by higher interest income, non-interest income, and an expanding market share.
With these achievements, Fidelity Bank has proven itself a formidable player in the Nigerian financial sector, offering substantial returns to its investors and maintaining a strong trajectory for future growth. Market experts predict that the bank’s share price could double in the near future, given its current momentum and strategic initiatives.