Money market
Fidelity Bank renews CEO’s contract, cites strategic objectives, exceptional performance
Fidelity Bank Plc has announced its Board of Directors’ decision to extend the employment contract of its GMD/CEO, Nneka Onyeali-Ikpe, from 2024 to 2026.
The decision was taken at the Board meeting on February 12, 2024, according to a notice at the Nigerian Exchange Limited (NGX). The extension is in furtherance of the Bank’s strategic objectives and premised on Nneka Onyeali-Ikpe’s sterling performance since assumption office on January 1, 2021.
Fidelity Bank recently released its full-year (FY) 2023 financial statements, reporting Gross Earnings growth of 72 percent to N575.421 billion from N334.966 billion in 2022. Its profit after tax (PAT) rose in 2023 to N99.902 billion from N47.165 billion in 2022, up by 112 percent.
Fidelity Bank grew its Net Loans and Advances by 46 percent in 2023 to N3.093 trillion, from N2.115 trillion in 2022, while its deposits almost doubled in 2023, reaching a new high of N4.049 trillion from N2.591 trillion in 2022, up by 56 percent.
The Board is confident that Fidelity Bank’s performance will continue its upward trajectory under Nneka Onyeali-Ikpe’s leadership and looks forward to working closely with her and the Executive Management Team on the execution of various strategic initiatives including international expansion.
Fidelity Bank shares were among the outperformers in 2023. The N11.40 per share it closed on February 13 represents an increase by 5.1 percent year-to-date (YtD).
“Our target price is revised upward to N15 (Previous: N13). Our updated Profit After Tax (PAT) projection yields Earnings Per Share (EPS) of N4.70 for FY’24 (FY’23: N3.12).
“While maintaining a dividend payout ratio of 22percent and raising our 12-month target price to N15, we reiterate our BUY rating on the stock,” said Lagos-based Vetiva research analysts in their February 5 note tilted “Fidelity Bank: Navigating growth amidst evolving regulatory landscape.”
Looking ahead to 2024, the bank anticipates a stronger performance in core banking activities, the analysts noted.