Two decades after the minimum capital requirements for banks were last reviewed by the central bank of Nigeria, the apex bank through a circular dated 28 March, 2024 announced an upward review of the minimum capital requirements for commercial, merchant, and non-interest banks in Nigeria. This exercise is aimed at strengthening the Nigerian financial system and the government’s objective to achieve a US$1 trillion economy in gross domestic product (GDP) terms by 2030. However banks trading performances on the Nigeria equities in the first quarter 2004 shows impeded movements as banks recapitalization exercise and plans dead line draw closer.
Q1’2024 Banks Performance
Of all the companies listed under Financial sector on the NGX, Veritas Kapital Assurance Plc formerly known as UnityKapital Assurance Plc (VERITASKAP) recorded price appreciation of 81.08 per cent in their stock price for the first quarter 2024, emerging as the best stock, while STANBIC IBTC recorded the least in share-price appreciation with 19.60 per cent.
Fidelity Bank started its Q1’ 2023 with the share price of N4.36 and closed with N5.35, resulting to price appreciation of 22.71 per cent. In contrast with Q1’ 2024, the share price dipped to N10.00 from N10.09, showing an appreciation of 86.92 per cent quarter-to-quarter and 297 per cent growth in share price appreciation in the last 13 years.
The bank has been trading above N5 for the past 6 months, therefore it should be reclassified from small price stock price to medium price stock price. The bank has continued to post commendable financial performance every quarter. In the half-year 2023 results and for the second year running, the bank emerged as the company with the highest earnings per share on the Nigerian Exchange Limited (NGX). A higher EPS indicates greater value because investors will pay more for a company’s shares if they think the company has higher profits relative to its share price. Fidelity Bank recorded an earnings per share of N184 in the first half of 2023 from N79 in the first half of 2022. The share price as of April 25, 2024, stood at N9.00 per share as the bank traded 12.642 million shares valued at N112.071 billion in 246 deals.
Dividend Released
The directors of Fidelity bank have proposed a final dividend payout of 60k per share to shareholders for the 2023 financial year. This is a 20 per cent increase from last year’s dividend, which was 50 kobo.
