Banking

HY 2017: Fidelity Bank Grows Profit by 65.6% to N9b, Declares no Interim Dividend

Published

7 years ago

30/08/2017

By Dipo Olowookere

Fidelity Bank Plc on Tuesday released its financial statements for the first half of 2017, posting a 65.6 percent growth.

Specifically, during the period, the profit after tax increased to N9.04 billion from N5.46 billion in the corresponding period of 2016.

The financial results further showed that profit before income tax stood at N10.22 billion as at June 30, 2017, in contrast to N6.13 billion achieved 12 months ago.

However, the results showed that no dividend was proposed by the Board of Directors of the lender in respect of the interim period ending June 30, 2017.

According to the bank, in the period under review, data from its Register of Members showed that no single shareholder held more than 5 percent of the issued share capital of Fidelity Bank.

Fidelity Bank, which boasts of 3,358 employees, made up of 57 percent male and 43 percent female, said its gross earnings rose to N85.82 billion from N70.26 billion in 2016, while the net interest income increased to N34.70 billion from N31.23 billion on June 30, 2016.

Furthermore, the net interest income after impairment charge stood at N29.89 billion in the period under review compared with N26.43 billion a year ago.

Also, the net cash flow used in operating activities closed at N7.67 billion as at June 30, 2017, in contrast to the N24.90 billion loss recorded 12 months ago, while the net cash flows provided by investing activities finished at N12.91 loss against N24.72 billion in the first half of last year.

According to the financial statements, loans and advances to customers stood at N51.05 billion versus N39.44 billion a year ago, while net foreign exchange gains closed at N2.55 billion against N963 million 12 months ago.

The lender noted that as at reporting date, it had several claims against it by parties seeking legal compensation in the sum of N3.92 billion as at June 30, 2017 versus N3.96 billion.

“Based on the estimates of the bank’s legal team and the case facts, the bank estimates a potential loss of N544.72 million (Dec 31, 2016: N544.72 million) upon conclusion of the cases.

“On the other hand, the bank has outstanding claims against various individuals in the sum of N2.75 billion (Dec 31, 2016: N7.63 billion) that are yet to be settled,” the report said.

In addition, Fidelity Bank disclosed that it has a $300 million Eurobond maturing in May 2018, adding that management has disclosed that it will issue a statement by September 30, 2017 stating which of the following options it will adopt for the Eurobond; redemption of the bonds, refinancing of the bond or issuing a new bond.

However in the interim the bank has set-up a sinking fund towards the repayment of the Eurobond if it decides to redeem the existing bonds.

Banking

CBN Insists Old, New Naira Notes Remain Valid Beyond December 31

Published

14 hours ago

14/12/2024

Aduragbemi Omiyale

By Aduragbemi Omiyale

The Central Bank of Nigeria (CBN) has reaffirmed that the old and new Naira notes will continue to be used for financial transactions in the country beyond December 31, 2024.

There had been rumours that the old and redesigned N200, N500, and N1,000 banknotes would no longer be legal tender from Wednesday, January 1, 2025, because the central bank would phase out the notes in compliance with a Supreme Court judgement of November 29, 2023.

But the apex bank, in a statement signed by its acting Director of Corporate Communications, Mrs Hakama Ali, on Friday, clarified that the apex court’s judgement being cited did not authorise the bank to phase out the banknotes by the end of this year.

According to her, the court allowed the CBN to leave the old and new notes to be used concurrently until it decides to gradually phase out the former.

The central bank’s spokesperson urged members of the public to disregard claims suggesting the old series of these denominations would cease to be valid at the end of this year.

She urged them to continue to accept all Naira notes for daily transactions, encouraging banks to also adopt alternative payment methods such as electronic channels to reduce the pressure on physical cash usage.

“The Central Bank of Nigeria (CBN) has observed the misinformation regarding the validity of the old N1000, N500, and N200 banknotes currently in circulation.

“In line with the bank’s previous clarifications and to offer further assurance, the CBN wishes to reiterate that the subsisting Supreme Court ruling granted on November 29, 2023, permits the concurrent circulation of all versions of the N1000, N500, and N200 denominations of the Naira indefinitely.

“For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadlines,” the statement noted.

Banking

Access Bank to Acquire 100% Equity in South Africa’s Bidvest

Published

3 days ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

Access Bank Plc, the banking subsidiary of Access Holdings Plc, has entered into a binding agreement with South African-based Bidvest Group Limited for the acquisition of 100 per cent equity stake in Bidvest Bank Limited.

The deal for the 24-year-old South African lender is due to be completed in the second half of 2025, upon regulatory approval.

This shows Access Bank’s further expansion plans in line with goals set by its late founder, Mr Herbert Wigwe.

The agreement to acquire 100 percent stake in Bidvest Bank reflects Access Bank’s commitment to strengthening its footprint in South Africa and consolidating on its position as the continent’s gateway to global markets as it seeks to optimise the benefits of recent acquisitions and accelerate its transition towards a greater focus on efficiencies.

Bidvest Bank, founded in 2000 is a niche and profitable South African financial institution providing a diverse range of services, including corporate and business banking solutions and diverse retail banking products.

As of its year ended June 2024, Bidvest Bank reported total assets equivalent of $665million and audited profit before tax of $20million.

Upon conclusion of this acquisition, Bidvest Bank will be merged with the bank’s existing South African subsidiary to create an enlarged platform to anchor the regional growth strategy for the SADC region.

This is coming just as the bank opened a new branch in Malta as part of efforts to focus on international trade finance after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).

Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.

The Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.

Banking

Access Bank Opens Branch in Malta to Strengthen Europe-Africa Trade Ties

Published

4 days ago

11/12/2024

Modupe Gbadeyanka

By Modupe Gbadeyanka

To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.

It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.

Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).

Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.

Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.

This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.

It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.

“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.

“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.

“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).

“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.

Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”