Coy: Fidelity Bank Plc (FIDELITYBK)
Rating: Buy
Current Market Price: N3.19
Year High: N4.05
Year Low: N2.40
Fair Value: N6.51
By: Jeariogbe Tunde Segun (Equity Analyst)
Introduction
- Only a day after the management of Fidelity Bank announced its bidding agreement to acquire 100% equity stake in Union Bank UK, it hit the market with another news of interim dividend.
- The management of Fidelity Bank had announced that it entered into a bidding agreement to take 100% equity stake in Union Bank UK, according to the report released to the investment public through the exchange platform, the Central Bank of Nigeria already issued a letter of no objection to the move.
- Following this report was the released of its audited financials for the period ended 30th June, 2022. For the first time, the management of Fidelity Bank announces the payment of interim cash dividend payment of 10k per share.
- The closure date for the said interim cash dividend is 13th September, 2022, thus, the qualification date is 12th September, while the said dividend will be credited to investors’ account from 20th September, 2022
- Kindly see below for the details of the said results along ratio estimates;
| FIDELITY | |
| Bourse | Nigerian Stock Exchange |
| Code Name | FIDELITYBK |
| Sector | FINANCIAL SERVICES |
| Market Classification | Main Board |
| Nature of Business | Commercial Banking |
| Date of Incorporation | Nov-19-1987 |
| Date Listed | May-17-2005 |
| End of Accounting Year | 31st December |
| Website | www.fidelitybank.ng |
| Registrar | FIRST REGISTRARS LTD |
| Auditor | Deloitte & Touche |
| Share Price@Relsd (N) | 3.19 |
| Earnings per Share | 0.80 |
| Intrinsic Value(N) | 6.51 |
| Share Outstanding | 28,974,797,023 |
| Market Capitalisation | 92,429,602,503 |
| FIDELITY | |||
| Statement of Comprehensive Income | |||
| 2022(Mill) | 2021(Mill) | %CHG | |
| GROSS EARNINGS | 154,843 | 112,304 | 37.88 |
| INTEREST INCOME | 136,225 | 89,121 | 52.85 |
| INTEREST EXPENSES | 60,587 | 38,824 | 56.06 |
| NET INTEREST INCOME | 75,638 | 50,297 | 50.38 |
| OPEX | 58,649 | 38,762 | 51.31 |
| DEPRECIATION | 3,379 | 3,485 | 3.04 |
| PBT | 25,079 | 20,628 | 21.58 |
| TAX | 1,772 | 1,322 | 34.04 |
| PAT | 23,307 | 19,306 | 20.72 |
| TOTAL COMP INCOME | 24,096 | 6,211 | 287.96 |
| Statement of Financial Position | |||
| Total Assets | 3,692,763 | 3,110,835 | 18.71 |
| Total Liabilities | 3,381,032 | 2,837,463 | 19.16 |
| Net Assets | 311,731 | 273,372 | 14.03 |
| Property Plan & Equipment | 40,699 | 38,361 | 6.09 |
| Retained Earnings | 68,190 | 46,503 | 46.64 |
| Total Deposits | 2,290,127 | 1,980,187 | 15.65 |
| Total Loans and Advances | 1,912,686 | 1,711,538 | 11.75 |
| Financial Strength/Solvency Ratio | |||
| TICKERS | 2022 | 2021 | %CHG |
| Debt Ratio | 91.56% | 91.21% | 0.38 |
| Total Debt to Equity Ratio (MRQ) | 10.85 | 10.38 | 4.49 |
| Equity Ratio | 8.44% | 8.79% | 3.94 |
| Beta Value | 0.80 | 1.11 | 27.93 |
| PROFITABILITY RATIOS | |||
| TICKERS | 2022 | 2021 | %CHG |
| EBITDA MARGIN | 52.17% | 49.07% | 6.33 |
| PRE-TAX MARGIN | 16.20% | 18.37% | 11.82 |
| EFFECTIVE TAX RATE | 7.07% | 6.41% | 10.25 |
| IE TO GE | 39.13% | 34.57% | 13.18 |
| ROAE | 7.48% | 7.06% | 5.87 |
| ROAA | 0.63% | 0.62% | 1.70 |
| EFFICIENCY RATIOS | |||
| TICKERS | 2022 | 2021 | |
| OPEX TO GE | 37.88% | 34.52% | 9.74 |
| GE TO TA | 4.19% | 3.61% | 16.15 |
| LDR | 83.52% | 86.43% | 3.37 |
| FIDELITY | |||
| Investment/Valuation Ratios | |||
| Tickers | 2022 | 2021 | %Chg |
| EPS | 0.80 | 0.67 | 20.72 |
| TCIP/SHARE | 0.83 | 0.21 | 287.96 |
| P/E-Ratio | 0.99 | 0.86 | 14.89 |
| Earnings Yield | 25.22% | 28.97% | 12.96 |
| BV/Share | 10.76 | 9.43 | 14.03 |
| PBV | 0.30 | 0.24 | 21.63 |
| DIVIDEND INFORMATION | |||
| Tickers | 2022 | 2021 | %Chg |
| Latest Final Dividend | 0.10 | – | #DIV/0! |
| Final Dividend Pay-Out Ratio | 12.43% | 0.00% | #DIV/0! |
| Final Dividend Yield | 3.13% | 0.00% | #DIV/0! |
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