Fidelity Bank shareholders might be in for a bumper package this year as the latest report shows increase in turnover and profits. Remember that 30kobo was given out as dividend for the last financial year.

Fidelity Bank’s unaudited reports for the second quarter for the period ended December 31st 2008 hit the market last week.

Gross earnings increased by 82.5% while profits before and after tax increased by 32% each. The gross earnings increased from N16.03 billion in December 2007 to N29.24 billion in 2008. Profit before tax increased to N9.48 billion in 2008 from N7.18 billion in comparable period in 2007. Fidelity Bank’s net earnings increased to about N7.6 billion in December 2008 compared with N5.8 billion in 2007. This could be due to the large outstanding number of shares of the company, which has over time limited the growth of the company’s earnings per share.

Fidelity Bank’s current earnings per share is 24 kobo which has reduced by 29% from the 31 kobo recorded for the comparable period in 2007. The profit margin also dropped from 36% in 2007 to 26%. Net assets significantly grew by 310% from N32.87 billion in 2007 to N134.66 billion.

It is advisable for the management to reconstruct the over bloated shares to enable Fidelity Bank to move forward and enable it to compete with its counterparts in the banking sector. Interested investors are advised to invest for a long term.

This entry was posted on Wednesday, February 25th, 2009 at 9:30 am and is filed under StockMarketNigeria. You can follow any responses to this entry through the RSS 2.0 feed. Tags: ApprovedO, Fidelity Bank, Zakari Faith
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