Fidelity Bank tops 10 most active stocks chart
Fidelity Bank Plc emerged as the most active stock last December with a trading volume of 533.3 million, thereby topping the 10 most active stocks chart for the month.
It was trailed by PlatinumHabib Bank Plc with a volume of 414.1 million shares and Transnational Corporation of Nigeria Plc (Transcorp) with 262.4 million shares.
Other stocks which made the 10 most active stocks chart include United Bank for Africa Plc (UBA) with 234.9 million shares, Access Bank Plc with 233.6 million shares, IBTC Chartered Bank Plc 163 million, First City Monument Bank Plc 156.4 million, Diamond Bank Plc 156.3 million shares, Guaranty Trust Bank Plc (GTBank) 145.4 million shares and Intercontinental Bank Plc 123.4 million shares.
The emergence of Fidelity Bank as the most active stock in December did not happen as a fluke. It was a culmination of renewed investors’ confidence in the shares of the bank from previous months. For instance, last November, it was the second most active with trading turnover of 409.3 million while PlatinumHabib Bank occupied a third position with 300.4 million shares.
Afribank had topped the chart in November as number one with 776.022 million shares.
The renewed investors’ confidence in the shares of Fidelity Bank might not be unconnected with its impressive financial performance and returns on investment post-consolidation.
Owing to the strong demand for the shares of Fidelity Bank Plc, its share price appreciated from N2.08 last November to N2.89 last Thursday, representing a growth of 38.9 per cent.
During its financial year ended June 30, 2006, Fidelity Bank recorded a profit before tax of N3.58 billion on gross earnings of N11.57 billion compared with a profit before tax of N1.56 billion on gross earnings of N6.16 billion, representing increases of 130 per cent in gross profit and 88 per cent in gross earnings.
Apparently impressed by the performance, the directors of the bank recommended a gross dividend of N1.8 billion, translating to a dividend per share of 11 kobo.
The total assets of the bank also grew from N46 billion in 2005 to N158 billion in 2006, representing a growth of 243 per cent while deposits moved from N21.6 billion in 2005 to N81.3 billion, an increase of 276 per cent.
A source close to Fidelity Bank noted that these improvements were remarkable considering the fact that it reaped the gains of consolidation only six months before its financial year ended June 30, 2006.
The source said other significant developments during the period that would positively impact on the prospects of the bank in the unfolding competition in the industry include its appointment by the Board of Internal Revenue to collect Federal Inland Revenue Service taxes for the federal government and approval by the board of Customs & Excise to collect Customs Duties.
Others are selection by the Debt Management Office (DMO) as one of 14 Banks to act as Primary Dealers in FGN Bonds and appointment by the Budget Office of the Presidency and the Federal Ministry of Finance as one of only four banks to issue the N75billion Pensions Bond for the payment of pension arrears to public servants in the country.
Fidelity Bank has also been selected as one of the 14 banks to manage the country’s external reserves (in partnership with Investec of South Africa, the largest asset manager in Africa ).
The bank has also been selected by Central Bank of Nigeria (CBN) as one of the 17 banks to deal directly in money market instruments and senior co-arranger with First Bank in the $350million Nigerian Content Fund for the Nigerian Oil and gas industry.