Fidelity Bank Plc has recorded an average annual profit growth of 64 per cent over the past three years, underlining its resilience as one of Nigeria’s fastest growing companies.

The bank has also seen rapid expansion in customer base and assets as total balance sheet size leapt from N2.1 trillion to N6.2 trillion, the sixth largest in the Nigerian banking industry. The balance sheet was driven by a hefty total deposit of more than N4 trillion, equally the sixth biggest in the industry.

A review of the audited reports and accounts of Fidelity Bank between 2023 and 2020 showed double-digit growths over the years with cumulative average annual growth rate (CAGR) in earnings, profitability and assets significantly above average industry rate and within the best performance among publicly quoted companies.

Average annual profit growth rate of 64 per cent underscores Fidelity Bank’s fundamental strength as an inflation-hedging investment. The operational growth strengthens the overall return outlook of the bank, which share price has delivered an average annual capital gain of more than 100 per cent in five years at the stock market.

Several experts’ reviews have said the bank’s strong historical performance is a major attraction for its ongoing combined rights and public offer.

Fidelity Bank is offering a rights issue of 3.2 billion ordinary shares of 50 kobo each at N9.25 per share. The bank is also simultaneously offering 10 billion ordinary shares of 50 kobo each to the general investing public at N9.75 per share.

The acceptance and application lists for the rights issue and public offer, which opened on Thursday, June 20, 2024, are scheduled 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 rose successively from N206 billion in 2020 to N251 billion, N337 billion and N556 billion in 2021, 2022 and 2023 respectively, representing average annual growth of 39 per cent. Profit before tax has grown consecutively from N28 billion in 2020 to N124 billion in 2023. Profit after tax jumped from N26.65 billion in 2020 to N99.45 billion in 2023. Earnings per share has also grown from 92 kobo in 2020 to N3.11 in 2023, showing the headroom for increased dividends to shareholders.

The bank’s profitability has been driven by continuous increase in market share, a strong commitment to national economic growth with supports 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 has more than 8.0 million customers, with 5.1 million of these customers on digital channels, underlining the strength of the bank’s robust information and communication technology.

As customers increasingly entrust the bank with their funds, Fidelity Bank has also shown equally aggressive commitment to national economic growth with average annual growth of 32 per cent in net loans.

Net loans have grown successively from N1.32 trillion in 2020 to N1.66 trillion, N2.12 trillion and N3.09 trillion in 2021, 2022 and 2023 respectively. The above average growth in loans shows Fidelity Bank’s famed supports for Nigerian businesses. The bank’s loans portfolio is the fifth largest in the Nigerian banking industry.

A frontline industrialist and a customer of the bank, Dr. Kamoru Yusuf, Founder of KAM Holding, said Fidelity Bank has been exceptional in supporting the development of Nigerian companies.

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 supports from Fidelity Bank.

He said investing in Fidelity Bank will be an investment in the growth of Nigerian economy and companies like KAM Holding, the nation’s largest wholly indigenous metal and steel production company.

He underlined the relationship 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 sustain its impressive growth record in the years ahead. Already, interim report and account of the bank for the first quarter ended March 31, 2024 showed that the bank started the current business year on stronger footing with three-digit growths across key performance indicators.

The three-month report showed that gross earnings increased by 89.9 per cent to N192.1 billion in first quarter 2024. The bank’s top-line performance continued to be driven by broad-based growths across income lines with interest income rising by 90.7 per cent and non-interest income growing by 84 per cent in first quarter 2024.

Growth in interest income was primarily spurred by a higher yield environment and strong earning assets base, while the increase in non-interest income was led by double-digit growth in account maintenance charges, foreign exchange (forex)-related income, trade, banking services, and remittances, supported by increased customer transactions.

Profit before tax doubled by 120 per cent to N39.5 billion in first quarter 2024 as against N17.9 billion in first quarter 2023. The bank’s performance was driven by expanding market share with total deposit rising by 17 per cent within the three months to N4.7 trillion, compared with N4 trillion recorded at the end of 2023.

The bank also increased its supports for national economic growth with net loans and advances rising by 21 per cent from N3.1 trillion at the end of 2023 to N3.7 trillion by March 2024.

Stanbic IBTC Bank, one of Nigeria’s leading financial institutions, partnered with the Lagos State Water Regulatory Commission to host its fifth edition of Lagos International Water and Sanitation Conference (LIWAC) 2024, which was held on Tuesday, 25 and Wednesday 26 June 2024 at Eko Hotel & Suites in Lagos. The summit focused on innovative funding solutions for water and sanitation infrastructure in Africa’s largest metropolis.

This strategic collaboration brought together financial experts, policymakers, and industry stakeholders under the theme ‘Financing Water and Sanitation for a Greater Lagos.’ The conference aimed to address the $4.3 billion investment gap identified by the African Development Bank for water and sanitation-related infrastructure in Lagos.

Lagos State Governor, Babajide Sanwo-Olu emphasized the importance of forming strategic international alliances. He explained how collaborations are instrumental in pooling resources, tapping into specialized expertise, and ensuring active community involvement. He added that these efforts are critical in driving significant improvements in the water and sanitation sector.

Governor Sanwo-Olu noted that partnerships facilitate the sharing of knowledge and promote best practices. They also foster global cooperation to address water and sanitation challenges more effectively. He elaborated that this comprehensive approach aims to achieve substantial and sustainable advancements in water quality and accessibility, ensuring healthier communities and a more environmentally secure future for Lagos State.

Babatunde Akindele, Head Commercial Banking, Stanbic IBTC Bank, highlighted the significance of this partnership. He said “By collaborating with the Lagos State Water Regulatory Commission for LIWAC 2024, we are leveraging our financial expertise to help tackle critical infrastructure challenges. This summit represents a crucial step towards developing sustainable funding models to transform Lagos’ water and sanitation landscape; boosting the state’s quality of life and economic activities.”

The two-day event featured keynote addresses, panel discussions, and workshops focused on innovative financing mechanisms, public-private partnerships, and investment opportunities in the water sector. Participants explored various funding strategies tailored to the unique challenges of water and sanitation projects.

In a panel discussion titled ‘Innovation Financing: Bridging the sector financing gap,’ Patrick Eneh, Head of Acquisition and Specialised Sectors at Stanbic IBTC Bank, shared insights on the Bank’s relationship with Lagos State. He underscored the Bank’s role as a long-term partner in various development projects, highlighting positive experiences from past collaborations and the Bank’s readiness to further invest in the state’s infrastructure and development projects.

Patrick explained that the Bank’s strategic approach to selecting and financing projects in Lagos State encapsulates the importance of a robust enabling environment, effective regulatory frameworks, and solid financial planning as pivotal elements in fostering successful public-private partnerships.

Rotimi Teteye, Senior Vice President of Stanbic IBTC Infrastructure Fund, highlighted the impact of a supportive regulatory environment on industry development and expansion. “When a government establishes a favorable regulatory framework, it lays a foundation that encourages and drives investments particularly crucial in high-stakes sectors, requiring significant investment inflows for growth and innovation,” he said.

The summit brought together diverse participants, including government officials, financial institutions, private investors, and water industry experts. It served as a platform for developing actionable funding strategies to address the complex economic challenges facing Lagos’ water and sanitation sector, in line with national and global development goals.

The success of LIWAC 2024 underscores the potential of public-private partnerships in driving infrastructure development. It also sets the tone for innovative funding solutions that promise to improve water access and sanitation for millions of Lagos residents.

Stanbic IBTC Holdings, in collaboration with One Tree Planted and the African Research Association managing Development in Nigeria (ARADIN), has launched a significant environmental project titled “Enhancing Biodiversity Conservation and Sustainable Livelihoods in Afi Mountain Wildlife Sanctuary (AMWS).”

This extensive tree-planting and conservation initiative aims to restore degraded watersheds and support local communities in Cross Rivers State, Nigeria.

The three-year project, spanning from April 2024 to March 2027, began with a flag-off ceremony on Friday, June 21, 2024, in celebration of World Rainforest Day. The event featured the planting of tree seedlings and was attended by Stanbic IBTC staff, representatives from the Cross Rivers State Government, and officials from One Tree Planted. This collaboration underscores a shared commitment to environmental preservation and sustainable development.

Dr. Demola Sogunle, Chief Executive of Stanbic IBTC Holdings, remarked: “Stanbic IBTC is committed to fostering sustainable development and environmental stewardship in Nigeria. Our tree-planting initiative demonstrates our dedication to enhancing biodiversity and supporting local communities. By restoring the Afi Mountain Wildlife Sanctuary, we aim at making a lasting positive impact on both the environment and the people who depend on it.”

The project is set to significantly impact the local environment. In the first phase, from June to September 2024, 60,000 trees will be planted across 120 hectares. These trees will include environmentally beneficial indigenous species such as Mahogany, Achi, Opepe, African Nutmeg, Cedar, and Apa wood.

Throughout the project’s duration, approximately 420 jobs will be created, with 84 positions already filled during the seedling preparation phase, 64% of which are held by women. Additionally, the initiative will benefit 300 small-scale farmers through capacity building and environmental conservation efforts, positively impacting several communities in the Boki Local Government Area. The restoration efforts will enhance soil stabilization and reduce the risks of erosion and landslides.

Harry P. Lynch, President and CEO of One Tree Planted, stated: “Planting trees in degraded or deforested areas helps the environment by accelerating and ensuring the re-establishment of healthy forests. Through reforestation, the canopy is restored, ecosystems are revitalized and biodiversity can thrive.”

Supported by the Cross Rivers State Forestry Commission, the project focuses on restoring degraded watersheds in the Badu and Mkperebong river corridors within AMWS. This initiative aims not only at enhancing local biodiversity but also at improving the livelihoods of surrounding communities.

In the second and third years of the project, from April 2025 to March 2027, efforts will concentrate on-site maintenance to ensure the long-term survival and growth of the planted seedlings. This comprehensive approach guarantees a sustainable impact, fostering a healthier environment and stronger community resilience.

PalmPay, a leading Africa-focused fintech platform, has been included in the 2024 edition of CNBC and Statista’s prestigious list of the “Top 250 Fintech Companies in the World.”

This recognition underscores PalmPay’s rapid growth and significant contributions to advancing financial inclusion.

The CNBC/Statista list honours fintech pioneers significantly transforming the financial services industry through technology. More than 2000 companies were evaluated globally based on general and sector-specific KPIs to determine the final selection. In 2024, some of the most influential fintechs in the world were included in the list, including Alipay, Nubank, Monzo, and Revolut.

Six other African firms made the list: Flutterwave (Nigeria/US) – Payments; Kuda (Nigeria/UK) – Neobanking; MTN (South Africa) – Payments; Piggyvest (Nigeria) – Financial planning; and Yoco (South Africa) – Payments.

PalmPay has developed an integrated platform that caters to consumers and businesses in the African market. The startup, which has been operating since 2019, pioneered a unique model in Nigeria that provides financial services such as money transfers, bill payment, credit services and savings via a one-stop-shop fintech ‘superapp’ and mobile money agents.

This dual approach of easy-to-use digital banking, combined with offline touchpoints for those without smartphones, has contributed to driving financial inclusion in a market where more than 40% of adults remain unbanked.

In 2023, PalmPay announced a major milestone of reaching 30 million registered users on its smartphone apps and 1.1 million businesses in its network of mobile money agents and retail merchants. A third of PalmPay customers report that the platform was their first-ever financial account.

PalmPay has quickly grown to become a market leader in Nigeria thanks to its user-friendly interface, reliable transactions, and focus on driving market share through fee-free transfers and promotions. PalmPay processes 15 million transactions on its consumer app daily and maintains a 99.5% transaction success rate.

To achieve this scale in a market where 10% transaction failure rates were common, the company built out its payment infrastructure, channel integrations and transaction routing systems. In addition to its consumer wallet, PalmPay offers services to businesses that leverage the PalmPay platform via its suite of POS machines, APIs and checkout solutions.

“It’s an honour for PalmPay to be recognised by CNBC and Statista as one of the World’s Top Fintech Companies,” said Sofia Zab, Global CMO, “This recognition validates our unique approach to financial services and our commitment to driving financial inclusion. We are actively expanding PalmPay’s reach and offerings, ensuring more people have access to essential financial services and promoting economic development in emerging markets”

PalmPay operates in several key markets across Africa, including Nigeria, Ghana and Tanzania, with plans to expand further in the region and other emerging markets. The company has global HQs in China and London.

ChamsSwitch, a leading financial technology company, is thrilled to announce its strategic partnership with Wema Bank to launch the UnionPay card in Nigeria.

This collaboration is set to revolutionise the payment experience for Nigerians travelling abroad, especially to China and other Asian countries, as well as for those conducting international online transactions from the comfort of their homes.

Speaking on this development, Dumebi Obodo, ChamsSwitch Managing Director said: “We are excited to partner with Wema Bank to bring the UnionPay card to Nigeria. This collaboration aligns with our mission to provide innovative and seamless payment solutions for Nigerians. The UnionPay card offers unparalleled convenience and security for our customers, whether they are traveling abroad or making international online purchases. We believe this product will significantly enhance the payment experience and meet the diverse needs of our users.”

UnionPay, recognised as the largest card scheme in the world by card volumes, brings an array of benefits to Nigerian consumers. With the introduction of the UnionPay USD Prepaid card, ChamsSwitch and Wema Bank are poised to meet the growing demands of Nigerian travellers and businesspeople.

The UnionPay USD Prepaid card is the perfect companion for Nigerians travelling abroad, particularly to China and other Asian countries, where UnionPay is the dominant card scheme. The card ensures a seamless and hassle-free payment experience, allowing travellers to load their cards in Nigeria and withdraw cash from ATMs in their destination countries. This is especially advantageous in regions like China, where other card schemes may face acceptance issues.

The UnionPay card is not only beneficial for travellers but also for business professionals and online shoppers in Nigeria. The card facilitates secure and straightforward international purchases, providing a reliable alternative for those who wish to buy products from global online marketplaces.

ChamsSwitch and Wema Bank are committed to offering a cost-effective and secure payment solution. The UnionPay card is designed to provide lower transaction fees, enhanced security features, and a seamless user experience, making it an attractive option for Nigerian consumers.

UnionPay’s extensive global network ensures that cardholders can use their cards in numerous countries worldwide. Notably, UnionPay cards has strong presence and widely accepted in Asia countries such as; Japan, South Korea, Singapore, Thailand, Vietnam, Indonesia, Malaysia, Philippines, Cambodia, Myanmar (Burma), Sri Lanka, etc. A region where other card schemes may not function effectively.

The card is also well accepted at BRICS countries. This global acceptance makes the UnionPay card a versatile and indispensable tool for international travelers and businesses.

About ChamsSwitch

ChamsSwitch is a leading financial technology company dedicated to providing innovative payment solutions to meet the evolving needs of consumers and businesses. Through strategic partnerships and cutting-edge technology, ChamsSwitch aims to enhance the payment experience for its customers, both locally and internationally.

Unity Bank customers have claimed over N4 million in cash rewards in its ongoing loyalty programme recently rolled out with Cashtoken, a Cash Reward-as-a-Service company.

The winners included no fewer than 40 customers who adopted and transacted on the Bank’s digital banking platforms, including the UniFi mobile banking application, the *7799# USSD platform or activated their Unity Bank Verve Card to transact on e-payment terminals across Nigeria.

Beginning from onboarding in our customer lifecycle journey, the Unity Bank Cashtoken Partnership commenced as a loyalty and reward scheme to reinforce the benefits of e-banking platforms. To begin, Customer transactions earn cash tokens, which are then redeemed to qualify for the monthly Cashtoken Rewards draw. Consequently, winners emerge from the draws to claim the cash prizes.

Recall that the retail lender announced the ongoing Cashtoken Rewards loyalty programme in December 2023 in partnership with Cashtoken Rewards Africa to empower customers and improve customer satisfaction. The partnership with Cashtoken Rewards also provided an opportunity for the Bank to migrate customers—old and new—to a platform that will continually create exciting rewards and appreciation for loyalty.

Eghomware Iyamu, Unity Bank’s Head of E-Business, commenting on the success of the Cashtoken Rewards loyalty program, stated: “We are excited to see our customers win over N4 million in cash rewards through our partnership with Cashtoken. This initiative demonstrates our commitment to recognizing and rewarding the loyalty of our customers”.

“By leveraging our digital banking platforms, including the Unifi mobile banking application and the *7799# USSD platform, we are not only enhancing customer experience but also providing life-changing opportunities. The Cashtoken Rewards program is a testament to our dedication to improving customer satisfaction and creating meaningful rewards along our customer lifecycle journey. We look forward to seeing more of our customers benefit from this exciting program as we continue to innovate and deliver exceptional value to them.”

Unity Bank has robust electronic banking products which include mobile and digital banking channels, including ATM, PoS, or any digital payment channels which support retail product transactions across the country. New-to-Bank customers are invited to open a Unity Bank account, onboard onto the digital platforms and begin transacting on the various platforms to earn cash token rewards and cash prizes while existing customers are encouraged to onboard and transact to win even more rewards and cash prizes.