Tag: Fidelity Bank Plc

Fidelity Bank Plc is considering raising about $500 million from the international debt capital market, through the issuance of 5-Year unsecured notes, in a bid to support its trade finance business and meet up with its general and working capital requirements.

This is according to a statement signed by the Bank’s Secretary, Ezinwa Unuigboje, and filed with the Nigerian Exchange Limited (NGX).

According to the disclosure, the bank intends to list the Notes on the Irish Stock Exchange, with the expectation that the Notes will be traded on its regulated market. In view of this, the Securities and Exchange Commission has confirmed that it will not object the transaction.

To facilitate the transaction, the bank announced that it will be hosting a series of investors’ meeting which is billed to commence from October 18, 2021. The bank also added that the final decision on whether to proceed with the transaction or not, will be subject to finalising the necessary transaction documentation and prevailing market conditions.

Commenting on the recent development, the recent press release issued by the firm  read: ‘’Fidelity Bank Plc (the ‘’Bank’’) is considering raising capital from the international debt capital market through an unsecured notes issuance, proceeds of which are intended to be used for general corporate purposes including supporting its trade finance business (the ‘’Transaction’’).

The proposed aggregate offer size is U.S.$500,000,000 (Five Hundred Million United States Dollar), due 2026, which will when issued rank parri passu, without preference among themselves, with all other unsecured and unsubordinated obligations of the Bank (the ‘’Notes’’). The Company intends to list the Notes on the Irish Stock Exchange, with the expectation that the Notes will be traded on its regulated market. The Securities and Exchange Commission has confirmed that it has no objection to the Transaction.

In view of the foregoing, the Bank is pleased to notify the Nigerian Exchange Limited of Planned investor meetings with respect to the Transaction scheduled to commence today October 18, 2021.’’

Recall that similarly, Access Bank had recently concluded the issuance of a 5-Year senior unsecured note worth $500 million.

Fidelity Bank Plc has announced that its board of directors will meet on 26th of October, 2021 to review and approve the unaudited financial results of the Bank for the third quarter of the year (Q3) ending September 30, 2021.

Consequently, the firm also announced that it will observe a closed period from October 1, 2021 until 24 hours after the Bank’s unaudited financial statements have been filed with the Nigerian Exchange Group Limited and made public.

This is according to a disclosure signed by the Bank’s secretary, Ezinwa Unuigboje and sent to the Nigerian Exchange Group Limited (NGX).

It is pertinent to note that the closed period is in line with Rule 17.18(a) (Closed Period Rules) of the NGX’s Rule Book (2015). During this period, individuals with sensitive information about stock performance such as; Directors, managers, employees, consultants and their connected persons, are prohibited from trading in the shares of the bank either directly or indirectly.

For more information about the board meeting, click HERE.

Fidelity Bank Plc held its Half Year (HY) 2021 results presentation to investors and analysts. Below are the facts to the figures;

• Gross earnings grew by 6.2% YoY to N105.8bn as the gradual recovery of business activities translated to an increase in non-interest revenue. This is as total customer induced transactions across all service channels increased by 58% YoY.
• Total interest income increased by 1.7% YoY, though interest income on liquid assets dropped by 40.3% YoY.
• Net interest margin dropped to 5.3% from 6.4% in H1 2020, as the decline in average yield on earnings assets surpassed improved average funding cost in H1 2021.
• Average cost of deposits dropped by 135bps to 2.7%, while the average borrowing cost declined by 29bps to 4.9%.
• The Bank also recorded a N7.2 billion drop in key expense lines as it deepens operational efficiency through process improvement and cost optimization. The bank partly hinged the drop on harnessing the benefits of remote working, which impacted the overall operating cost.
• Total assets grew by 12.8% to N3.11 trillion from N2.8 trillion as at December, 2020.
• Customer deposits increased all deposit types. The top three are; Debt securities (+28.8% YTD), Tenor deposits (+26.8% YTD) and Demand deposits (+18.4% YTD). The bank further explained that low cost deposits accounted for 75.5% increase in total customer deposits.
• Net loans & advances increased by 15.8% YTD to N1.54 trillion, with 30.7% of the loan book within the 12 months or less maturity portfolio.
• CAR stood at 18.8%, well above the regulatory minimum requirement of 15.0%

For more information about the Investors presentation, click HERE.

Fidelity Bank Nigeria Plc released its interim results for the half year period ended June 30, 2021.

• Gross earnings for the period under review totalled N112.3 billion.(+6.2% YoY)
• Net interest income of N50.3 billion. (+4.1% YoY)
• Personnel expenses totalled N11.1 billion. (-8.9% YoY)
• Customers deposit at the period stood at N1.98 trillion
• Profit for the period was N19.31billion. (+70.8% YoY)
• Earnings per share of 67 kobo Vs 39 kobo YoY.
• No dividend was announced in the period.

See link to results.

Fidelity Bank Plc has informed shareholders and the general public, of a change in the date of its forthcoming Board of Directors meeting earlier scheduled to hold on 6th of August, 2021.

According to a notice signed by the bank’s secretary, Ezinwa Unuigboje, and filed with the Nigerian Exchange Group Limited (NGX), the Board Meeting will now hold on Thursday, August 5, 2021.

The Bank had earlier disclosed that the forth coming meeting was scheduled to consider and approve its audited financial statements for the half year ended June 30, 2021. Consequently, the bank announced a closed period from July 1, 2021, until 24 hours after the publication of the audited half year financial statements

It is pertinent to note that during the closed period, all insiders of the firm are prohibited from trading in the shares of the Bank.

What you should know:

• Fidelity Bank Plc had earlier reported a profit after tax of N9.6billion in the first quarter of the year (Q1, 2021).
• The bank closed trading today 22nd of July, 2021 with a share price of N2.39, down by 0.42%.

See link to recent disclosure.

Two highly ranked board members of Fidelity Bank Plc have purchased additional 23.9 million shares of the company in a deal cumulatively worth N54.9 million.

According to two separate disclosures signed by the company’s secretary, Ezinwa Unuigboje and made available on the website of the Nigerian Exchange Group Limited (NGX), the two board members that consolidated their equity stakes are; Mrs Nneka Onyeali-Ikpe (M.D/CEO) and Mr Nelson Nweke (Non-Executive Director).

Breakdown of the deal

The breakdown of the deal revealed that the Managing Director/CEO of Fidelity Bank purchased a total of 2,138,260 units at an average price of N2.30 per share. This puts the total consideration for the shares purchased by the M.D/CEO at N4, 917,998. Additionally, it is important to note that the deal occurred on the 28th of June, 2021.

On the other hand, Mr Nelson Nweke purchased a total of 21,805,180 units of the firm’s shares at an average price of N2.29, totalling N49, 933,862.2. This deal took place from 23rd-29th of June, 2021.

Cumulatively, the aforementioned board members spent a total of N54, 851,860.2 on additional 23,943,440 units of the firm’s shares.

Why it matters:

The disclosure is in line with the rule 17.15(C) of The Exchange, which demands that all dealings by insiders of listed companies be reported by the management. This is aimed towards ensuring transparency in the system and maintaining stakeholders’ confidence in the financial system.

The Board of Fidelity Bank Plc has announced the retirement of Mr. Gbolahan Joshua as an Executive Director of the company.

This is according to a notification signed by the company’s secretary, Mrs. Ezinwa Unuigboje, and sent to the Nigerian Exchange Group Limited (NGX).

According to the disclosure, the retirement of Mr. Gbolahan who also doubles as the Chief Operations and Information Officer from the Board of the company, will become effective from 11th of June, 2021.

It is imperative to note that the Board of Directors approved the retirement of Mr Gbolahan at its recently concluded meeting held on 26th of April, 2021 and subsequently communicated the decision to the Central Bank of Nigeria, which formally acknowledged the development.

In this light, the board and management of the bank seized the opportunity to appreciate Mr. Gbolahan’s contributions to the growth and development of the institution during his period of employment and tenure on the Board. The board further wished him well in his future endeavours.

What you should know about Gbolahan:

• Mr Gbolahan is a veteran in the financial industry with over 21 years of experience in the assurance and banking sectors. His areas of technical expertise include finance, strategy, investors’ relations, digital banking and information technology among others.
• He joined Fidelity Bank in April 2014 as the Divisional Head Strategy Innovation and Business Transformation. He was subsequently appointed into the Board in September 2019 as an Executive Director/Chief Operations and Information Officer.
• Prior to joining Fidelity Bank, Mr Gbolahan worked for a host of leading financial institutions like FCMB, Union Bank, Heritage Bank and UBA, serving in various leadership positions like CFO, CIO and COO, etc.
• He is an alumnus of Olabisi Onabanjo University where he obtained a Bachelor’s degree in Accounting and Finance.

Fidelity Bank Plc has notified the Nigerian Exchange Group Limited that Mrs. Nwamaka Onwughalu, a Non-Executive Director in the bank, has acquired 4,404,700 additional units of Fidelity Bank shares, worth ₦9.95 million.

In line with The Exchange’s policy on insider dealing, the formal disclosure was made by the Bank’s Secretary, Ezinwa Unuigboje.

According to the notice, Mrs. Nwamaka acquired the additional 4.4 million units of Fidelity Bank shares at an average share price of ₦2.26 per share. This put the total consideration for the shares purchased by the non-executive director at ₦9,954,622. In addition, it is pertinent to note that the deal took place on the 16th-17th of June, 2021.

It is imperative to note that the disclosure is in line with the statutory requirements specified by the Exchange and needed to entrench transparency and confidence in the system. Trade by insiders, particularly purchases, often demonstrates confidence in the financial performance of the companies that they run.

Fidelity Bank Plc’s shares opened trading today 23rd of June, 2021 at ₦2.28 per share.

The Board of First City Monument Bank Plc (FCMB) has approved a disbursement of the total sum of N2.97 billion as dividend to its shareholders for the period ended 31st December, 2020.

The approval is part of the resolutions reached at the recently concluded 8th Annual General Meeting held by the company on the 21st of April, 2021.

Sequel to the unanimous decision reached at the meeting, a dividend payment of 15 kobo per share will be paid on all the issued 19,802,710,754 ordinary shares of the company. In this light, only qualified shareholders’ whose names appear in the Register of Members at the close of business on 8th of April, 2021 will be credited.

Other decisions reached at the AGM include;

• Three Board members were re-elected as Directors, namely: Alhaji Mustapha Damcida, Mrs Olapeju Sofowora and Mrs Tokunboh Ishmael.
• Managers and Auditors remuneration for the 2021 financial year were fixed.
• Five persons were re-elected as members of the Audit Committee for the 2021 financial year.

What you should know:

• FCMB had earlier reported a profit after tax of N19.6 billion in FY 2020.
• As at the period of reporting this, the firm’s share price currently trades at N2.87.