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  • Fidelity Bank Profit Before Tax Inclines By 72.4% In First Half Of 2021

    Fidelity Bank Profit Before Tax Inclines By 72.4% In First Half Of 2021

     

    Fidelity Bank Plc has posted a profit before tax (PBT) of N20.6 billion for the six months ended June 30, 2021.

     

    The Managing Director/Chief Executive Officer of Fidelity Bank, Mrs. Nneka Onyeali-Ikpe, disclosed this in the bank’s audited half-year (H1) results released to the Nigerian Exchange (NGX) Limited on Sunday in Lagos.

     

    Onyeali-Ikpe said that the bank’s PBT represented a 72.4 percent growth when compared to N12.0 billion recorded in the comparative period of 2020.

     

    She added that profit after tax (PAT) rose to N19.31 billion from N11.30 billion recorded in the corresponding period.

     

    She said the growth was on the Back of Increased customer transactions and improved operational efficiency.

     

    “We sustained our impressive financial performance with double-digit growth in profit as increased customer transactions drove non-interest revenue while improved operational efficiency continued to moderate cost-to-serve,” she said.

     

    Onyeali-Ikpe also said that the financial result for the period indicated that Gross Earnings increased by 6.2 percent Year-on-Year (YoY) to N112.3 billion on account of 27.8 percent growth in Non-Interest Revenue (NIR) to N23.8 billion from N18.1 billion in H1 2020.

     

    She added that the bank’s NIR was driven by strong growth in commission on banking services by 57.7 percent, account maintenance charges by 50.6 percent, digital banking income by 49.4 percent, and trade income by 33.7 percent among others.

     

    Total customer-induced transactions across all distribution channels increased by 58.0 percent YoY and 21.2 percent QoQ.

     

    The bank showed a good appetite in funding the real sector with net loans and advances increasing by 15.8 percent YTD to N1.53 billion from N1.32 billion in 2020FY.

     

    However, the actual growth was 14.7 percent while the impact of the currency adjustment (2020FY: N400.3/dollars-H1 2021: N410.6/dollars) accounted for a 1.1 percent YTD growth in the loan book. Cost of risk came in at 0.3 percent and the NPL ratio (stage 3 loans) dropped to 2.8 percent from 3.8 percent in 2020FY.

     

    Other regulatory ratios remain well above the minimum requirement: capital adequacy ratio at 18.8 percent from 18.2 percent in 2020FY.

     

    Total Deposits increased by 16.5 percent YTD to N1.98 billion from N1.69 billion in 2020FY, driven by increased deposit mobilization across all deposit types.

     

    “Digital Banking gained further traction as we now have 55.1 percent of our customers enrolled on the mobile/internet banking products and 89.3 percent of customer-induced transactions were done on digital platforms.”

     

    She also explained that the bank’s foreign currency deposits increased by 23.1 percent YTD at 149 million dollars and now accounted for 18.5 percent of total deposits from 17.5 percent in 2020FY.

     

    According to her, this is as the bank continues to harness the benefits of its renewed drive in the diaspora banking space.

     

    “We look forward to sustaining the current momentum in H2 by optimizing our balance sheet and lowering our cost–to–serve.

     

    “This will translate to improved earnings while we remain committed to our medium to long-term strategic objectives,”  Onyeali-Ikpe said.

     

     

  • Fidelity Bank Deepens Workforce Transformation Agenda, Promotes 745 Staff

    Fidelity Bank Deepens Workforce Transformation Agenda, Promotes 745 Staff

    In line with its recently launched seven-point agenda which among other things seeks to increase staff morale while empowering them to work more efficiently, Fidelity Bank has promoted 745 employees.

     

    The bank said the promotion came on the heels of the performance review of two financial years – 2019 and 2020.

     

    A total of 461 staff members benefited from the FY 2019 promotion exercise, while 284 staff members benefited from the FY 2020 exercise.

     

    The beneficiaries cut across the senior, middle, and junior management cadre of the bank, and the promotion was based on merit, using a transparent and robust performance management system in line with global best practices.

     

    Speaking about this, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc said “I am very delighted to announce the promotions for 2019 and 2020 financial years.

     

    “Releasing the list for 2 financial years’ promotion at the same time, is something we are very proud of.

     

    “We strongly believe that the continuous growth of our bank over the years has been largely attributed to the commendable efforts and unrelenting sacrifices of our employees. Promotion is one of the many ways we express our gratitude. We are thankful to be a home to many amazing talents that continue to drive our value and most importantly, serve our stakeholders in the highest standards.”

     

    Speaking further, she noted; “Since I was appointed the MD/CEO of our great bank in January 2021, I have been committed to a 7-point agenda to move our bank further, out of which workforce transformation is a key category. Staff performance and reward is a critical to us, and as an organisation, we will continue to make available adequate resources to deepen the skills and entrench a culture of high performance amongst employees.

     

    “I wish to appreciate all members of the Fidelity Bank family for their commitment and drive, and unrelenting sacrifices towards delivering our objectives. As we move forward in our quest to becoming a leading tier-one bank, I encourage all elevated staff to see their promotion as a call to rededicate themselves to excellence.”

     

    Fidelity Bank has continued to empower its employees with invaluable resources capable of putting them at the forefront of innovative transformation.

     

    In March 2021, the bank announced two capacity-building projects – One Culture Project and Project Alpha – that were targeted at transforming the workplace for its staff.

     

    In particular, Project Alpha was created to help Fidelity Bank develop a robust and holistic learning and development framework for all staff while One Culture Project was formed to reinforce the behaviour and value systems that will help the bank, as well as staff, achieve set goals.

     

  • Fidelity Bank Assures SMEs of Loan Availability

    Fidelity Bank Assures SMEs of Loan Availability

     

    Fidelity Bank has said it has loans available for Small and Medium Enterprises and aims to drive financial inclusion through agency banking.

     

    The Managing Director, Nneka Onyeali-Ikpe, said this during a media briefing on Tuesday in Lagos as she revealed the bank’s plans for the country’s economy.

     

    Onyeali-Ikpe said, “We intend to build a centre for SMEs free legal services in the event of going into any contract.

     

    “We have loans for everybody, and we would also drive financial inclusion through our agency banking. We have advanced in technology and are adding more products to our platform. We encourage our customers to key into our digital process.”

     

    She said despite the effects of the COVID-19 pandemic on the economy, new areas of growth were opened up to discerning investors.

     

    She said Fidelity Bank would be focusing on doing business in the agriculture, healthcare, hospitals and diagnostic laboratory services, telecommunication, infrastructure and technology sectors, especially fintech.

     

    “We have seen growth in agriculture and we will continue to adequately explore the sector,” Onyeali-Ikpe said.

     

    She said her target was to drive the bank to Tier 1 status within the shortest possible time, adding that it was already targeting market share of 7.5 per cent with regard to deposit.

     

    According to her, the bank has a seven-point agenda, and intends to embark on an innovation drive through the implementation of new processes and techniques.

     

    She said, “The bank is also executing fresh ideas to ensure continuous process improvement, reduce cost to serve, increase competitiveness, improve brand recognition and value, build new partnerships and relationships, drive turnover, and increase profitability.

     

    “The bank’s digital transformation involves an end-to-end digitisation across all facets of the business. In line with this, the bank has launched a novel digital service — Pay Yourself — which revolutionises payday for salary earners and SMEs.”

     

  • Fidelity Bank Records 53.9% Profit Growth In Q1 2020

    Fidelity Bank Records 53.9% Profit Growth In Q1 2020

     

    Fidelity Bank says it recorded N10.1 billion in profit before tax (PBT) for the first quarter of 2021 which ended March 31.

     

    According to a statement released by the bank, this represents an increase of 53.9 percent when compared to N6.6 billion recorded in the corresponding period in 2020.

     

    Gross earnings increased by 7.7 percent year on year to N55.1 billion on account of 66.7 percent growth in non-interest revenue to N12.1 billion from N7.2 billion in Q1 2020.

     

    The bank’s unaudited results show an increase in net revenue by 13.4 percent from N30.3 billion in Q1 2020 to N34.4 billion in 2021.

     

    The bank explained that the increase in its non-interest revenue came from foreign exchange related income, digital banking income and account maintenance charge, among other.

     

    It said total customers’ induced transactions across all its service channels increased by 30.4 percent year on year and 17.1 percent quarter on quarter.

     

    Commenting on the results, Nneka Onyeali-Ikpe, chief executive officer of Fidelity Bank Plc, said the bank is committed to sustaining its performance.

     

    She said Fidelity Bank increased its operating expenses by N1.3 billion (6.2%) to N23.0 billion as a result of N4.3 billion growth in regulatory charges.

     

    Excluding the increase in regulatory charges, the bank said its total operating expenses would have dropped by 13.8 percent to N18.6 billion from N21.6 billion in Q1 2020.

     

    “We commenced the year showing impressive double-digit growth in profitability and improved performance across key efficiency indices whilst ensuring our business model continued to deliver strong positive results in line with our guidance for the 2021 financial year,” she said.

     

    “Total deposits increased by 3.1% YTD to N1,751.3bn from N1,699.0bn in 2020FY, driven by 5.5% increase in low cost deposits (Demand: 6.2% | Savings: 4.1%). Foreign currency deposits increased by 15.7% YTD (N46.9bn) and now accounts for 19.7% of total deposits from 17.5% in 2020FY, as we harness the benefits of our renewed drive in Diaspora Banking as well as the recent CBN Naira-for-Dollar Incentive Scheme for diaspora remittances to Nigeria.

     

    “Retail Banking continued to deliver impressive results as savings deposits increased by 4.1% YTD to N441.6bn and we are on course to achieving the 9th consecutive year of double-digit growth in savings deposits. Savings deposits was responsible for 32.9% of the absolute growth in total deposits and now accounts for 25.2% of total deposits compared to 25.0% in 2020.

     

    “Net Loans and Advances increased by 7.6% YTD to N1,426.3bn from N1,326.1bn in 2020FY. However, the actual growth was 6.8% while the impact of the currency adjustment (2020FY: N400.3/$ – Q1 2021: N407.6/$) accounted for a 0.8% YTD growth in the loan book. Cost of risk came in at 0.4% and the NPL ratio dropped to 3.6% from 3.8% in 2020FY.

     

    “We are committed to sustaining our growth trajectory and achieving the long-term strategic aspirations of the Bank as we look forward to delivering another set of good results in the next quarter.”