How Fidelity Bank braved fuel subsidy removal headwinds
Indices have emerged showing how Fidelity Bank braved headwinds caused primarily by petrol subsidy removal in Nigeria.
This is noticed from the angle of huge gains made within the period to become one of the 10 companies in Nigeria with the highest earnings per share on the Nigerian Exchange Limited (NGX).
Otherwise, Fidelity Bank remains one of the top Nigerian companies with the highest earnings per share on the Nigerian Exchange Limited as of August 2023.
Nigeria’s economy faced tough times in 2023, as most people and businesses battled the high cost of living, and companies saw a spike in the price of production caused by the petrol subsidy removal, which drove the costs through the roof.
However, companies in Nigeria managed to stay afloat despite a tough first half year.
Though, some companies are yet to release their half-year financials but report showed that Fidelity Bank, Seplat Energy, Total Energies, Okomu Oil, Presco, Dangote Cement, MTN Nigerian BUA Foods, FCMB, and Geregu Power are some firms in Nigeria with the highest earnings per share.
Earnings per share (EPS) is a company’s net profit divided by the number of outstanding common shares.
Earnings per share also indicate how much money a company makes per share of its stock and is a widely used metric for calculating corporate value.
Higher earnings per share show excellent value because investors will pay for a company’s share if they believe the firm has higher profits than its share price.
Fidelity Bank recorded earnings per share of N184 in the first half of 2023 from N79 in the same period of 2022.