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Fidelity Bank Posts Impressive Q3 Results, Declares N18b Profit

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Fidelity Bank

By Dipo Olowookere

On Thursday, Fidelity Bank Plc released its financial performance for the third quarter of 2018, which has been adjudged as impressive by analysts and market observers.

According to the 9 months financial scorecard of the lender released to the Nigerian Stock Exchange (NSE), the company recorded a double-digit growth in revenues and profitability, indicating that the bank was on course to finishing strong in the 2018 financial year.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 4 million customers who are serviced across its 240 business offices and various digital banking channels. The bank is focused on select niche corporate banking sectors as well as Micro Small and Medium Enterprises (MSMEs).

Details of the 9-months results for the period ended September 30, 2018, showed that gross earnings grew by 6.9 percent to N139 billion from N130.1 billion reported in the same period in 2017 whilst profit-before-tax soared by 23.6 percent from N16.2 billion to N20.1 billion.

In other indices, total assets grew by 21.9 percent to N1.680 trillion from N1.379 trillion in the same period last year, while the total deposits, a measure of customer confidence, increased by 27.3 percent to close at N986.8 billion from N775.3 billion in 2017

“We are delighted with our 9 months financial performance with the continuing execution of our medium-term strategy which has further yielded positive results, leading to impressive growth across key performance indices including profitability, total deposits and balance sheet size etc,” said Fidelity Bank CEO, Mr Nnamdi Okonkwo.

According to him, the bank has continued to grow its market share driven by significant traction in its chosen business segments such as Corporate, Commercial, SME and digitally led Retail Banking.

“Gross earnings increased y-o-y by 6.9 percent to close at N139 billion primarily driven by the growth in earning assets by 19.2 percent which led to a 9.1 percent increase in interest income to N120.4 billion,” he explained.

Over the years, Fidelity Bank has differentiated itself from its peers by continuously introducing customer–focused digital products to grow its market share and mobilize cheaper funds.

Attesting to that, its savings deposits increased by 12.9 percent to N201.7 billion leading to the fifth consecutive year of double-digit savings growth whilst low cost deposits, now account for 73.6 percent of total deposits as shown in the results.

The growth in deposits is further complemented by its digital banking push with has resulted in having over 40 percent of its customers enrolled on the mobile/internet banking products and recording over 80 percent of total transactions on digital platforms.

Despite the high inflationary environment, Fidelity Bank’s expenses grew by 6.5 percent to N50.6 billion due to increased technology investment and higher AMCON Charges.

Its cost to income ratio remained relatively stable at 68.4 percent compared with 67.5 percent in the 2017 FY.

Also, non-performing Loans (NPLs) ratio improved to 6 percent from 6.4 percent in the 2017 FY despite a 3.4 percent growth in the absolute NPL numbers with the NPL coverage ratio at 109.9 percent.

Other regulatory ratios remained above the required thresholds with Capital Adequacy Ratio (CAR) at 17 percent and Liquidity Ratio at 38.3 percent.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

Banking

Fidelity Bank, UBA, 10 Others to Disburse Cabotage Vessels Financing Fund

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UBA Dividend

By Adedapo Adesanya

The Nigerian Maritime Administration and Safety Agency (NIMASA) has selected Fidelity Bank, UBA, Zenith Bank, First Bank, Jaiz Bank, Lotus Bank, and six other Primary Lending Institutions (PLIs) to disburse the long-awaited Cabotage Vessels Financing Fund (CVFF) at a single-digit interest rate.

The Director-General of NIMASA, Mr Dayo Mobereola, disclosed this during a virtual meeting in Lagos on Monday, which was attended by stakeholders including representatives of these financial institutions.

He said the move was to transform the maritime sector, emphasising that President Bola Tinubu’s administration, with the support of the Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, had secured approvals for the fund’s operationalisation.

The PLIs are the designated banking institutions for the disbursement.

Mr Mobereola underscored the transformative potential of the initiative, stating that it would empower indigenous shipowners to compete more effectively and significantly boost local content within the maritime industry.

He noted that the CVFF is a loan facility with a single-digit interest rate, adding that the utilisation of which would be closely monitored.

According to him, its monitoring will ensure it achieves its intended objectives of fostering growth and capacity development among Nigerian operators.

“This demonstrates the establishment of clear frameworks for transparent, efficient, and impactful fund utilisation, directly empowering our indigenous shipowners,” Mr Mobereola said.

He noted that the CVFF was established under the Coastal and Inland Shipping Act of 2003 to provide vital financial support for vessel acquisition and overall capacity building for Nigerian maritime businesses.

“Despite nearly two decades of regulatory hurdles and past challenges, we are now at the cusp of a new era,” he added.

According to the director-general, the CVFF disbursement is expected to generate significant employment opportunities for Nigerian seafarers and strengthen ancillary maritime services, maintaining that this would contribute to the overall growth of the nation’s blue economy.

He assured stakeholders that the CVFF implementation framework prioritises transparency and accountability, featuring a dedicated Secretariat Cabotage Unit, clearly defined eligibility criteria, and the strategic partnership with the 12 PLIs to streamline access to the funds.

Mr Mobereola urged all prospective applicants to adhere to the established procedures through the designated financial institutions, reiterating that the CVFF is a strategic investment in maritime future and not a grant programme.

“The CVFF represents not just the end of a long wait but the beginning of a new era for Nigerian shipping,” he added.

On his part, Mr Jubril Abba, the Executive Director of Cabotage Services at NIMASA, explained that the fund is design to invigorate activities within the maritime space.

He commended the President and the minister for their decisive action in ensuring the disbursement to benefit indigenous maritime operators.

NIMASA’s Legal Consultant on CVFF, Mr Adedoyin Afun, elaborated on the Cabotage Act’s provisions, noting that it is specifically designed for Nigerian citizens.

Mr Afun explained further thar the Act aims to promote the development of shipping within Nigeria’s territorial waters.

He clarified the key requirements: vessels must be owned, built, operated, and managed by Nigerians.

Mr Afun also outlined NIMASA’s enforcement powers under the Act and highlighted that vessels must have been purchased within 12 months prior to loan application.

The financial consultant for the fund, Mr Yusuf Buhari, said that the CVFF aims to provide Nigerian shipowners with access to affordable financing, thereby reducing Nigeria’s reliance on foreign vessels for its coastal and inland shipping needs.

He explained the required applicant contributions, with NIMASA (CVFF) providing up to 50 per cent or a maximum of $25 million, with no direct funding.

According to him, the loan tenure is set at eight years, and the currency will be translated to US Dollars to align with international best practices.

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Banking

Abbey Mortgage Bank Shareholders to Meet May 28 for Dividend Payment, Others

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Abbey Mortgage Bank

By Aduragbemi Omiyale

Shareholders of Abbey Mortgage Bank Plc will meet on Wednesday, May 28, 2025, for their yearly gathering to discuss the dividend payment proposed by the board and other issues.

The financial institution confirmed the date for the 33rd Annual General Meeting (AGM) in a statement made available to Business Post through its representatives.

The lender, which reaffirmed its commitment to providing long-term value to its customers and shareholders, said the AGM would hold virtually by 11:00am, promising to provide further details for participation on its website and official communication channels in the coming days.

This year’s AGM will provide an important platform for the bank to engage with shareholders, present its audited financial statements for the year 2024, and also discuss key milestones, governance decisions, and strategic goals for the future.

The meeting will also include the presentation of its financial report, dividend payment, discussion on business growth strategies and expansion. It will also serve as a forum for shareholder engagement and feedback.

In the statement signed by its Managing Director, Mr Mobolaji Adewumi, the company expressed its reflection to build on accountability, transparency, and the trust of stakeholders.

“The AGM represents more than an annual tradition, it is a reflection of our accountability, transparency, and the trust we continue to build with our stakeholders.

“We look forward to sharing our progress and vision for the future with our shareholders and the broader community,” the bank, which pledged to continue to play a leading role in the growth and development of Nigeria’s mortgage banking sector, stated.

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Banking

Fidelity Bank’s Pre-Tax Profit Rises 167.8% in Q1 2025

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Fidelity Bank Nneka Onyeali-Ikpe

By Aduragbemi Omiyale

At the close of the first quarter of 2025 on March 31, the pre-tax profit of Fidelity Bank Plc stood at N105.8 billion, 167.8 per cent higher than the 39.5 billion achieved in the same period of 2024.

This information was contained in the financial statements of the company released to the Nigerian Exchange (NGX) Limited recently.

The top-line of the results was also impressive as the gross earnings went up by 64.2 per cent to N315.4 billion from N192.1 billion.

The lender also witnessed growth in interest income, primarily led by a 38.6 per cent year-on-year and 7.4 per cent year-to-date expansion in earning assets base.

In addition, the non-interest revenue was increased between January and March 2025, driven by FX-related income, trade and commission on banking services, supported by increased customer transactions.

Further, total deposits grew by 11.1 per cent ytd to N6.6 trillion from N5.9 trillion in December 2024, driven by 10.6 per cent ytd growth in low-cost deposits to N6.1 trillion, which represents 92.2 per cent of total customer deposits.

In the same period, local currency deposits jumped by 2.0 per cent ytd as foreign currency deposits surged by 21.4 per cent to $2.3 billion from $1.9 billion in December 2024.

Also, net loans and advances were up by 5.0 per cent ytd to N4.6 trillion, with growth in the bank’s loan book skewed to LCY loans as cost of risk declined to 0.6 per cent from 1.5 per cent in 2024FY.

“We started the year with triple-digit growth in profit and sustained the momentum in our earning assets growth. This performance shows the resilience of our business model and reinforces our confidence in delivering a better result in the 2025 financial year.

“Beginning the year with such positive momentum reinforces our commitment to supporting the growth of individuals and businesses, while enhancing our financial sustainability.

“As we go into the rest of the year, we remain focused on building a resilient banking franchise with a diversified earnings base,” the chief executive of Fidelity Bank, Mrs Nneka Onyeali-Ikpe, said.

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