Finance

Fidelity Bank Aims to Increase Market Share

Published

6 years ago

June 11, 2018

Fidelity Bank Aims to Increase Market Share

The Managing Director/Chief Executive Officer, Fidelity Bank Plc, Mr. Nnamdi Okonkwo, has said the bank plans to be among the top five to six in the country in the next five years.

“This has implications for market share, number of customers, balance sheet size and all,” he said while addressing journalists in Lagos on the lender’s financial year ended December 31, 2017.

He said a board retreat was held late last year to strategise and agree on the imperatives for achieving the goal, adding, “By God’s grace and the disciplined approach to the execution of the outlined initiatives, we will realise this goal.”

According to him, the watchword from the beginning is to keep the bank safe, ensuring that its capital adequacy and liquidity remain strong.

He stated, “At some point, people thought Fidelity Bank was too conservative but it was for a good reason. It has enabled us to survive three or four cycles of crisis in the banking industry with us acquiring two banks in the process.

“When I came on board, it was clear to me that we needed to be mindful of these, and management also agreed to retain this posture when we had our strategic retreat to strategise for the next growth phase. We said to ourselves at the retreat that we want to be the clear leader among the tier-two banks.”

Okonkwo said the board came up with medium-term strategic initiatives built around balance sheet optimisation, cost reduction and increased digitisation.

“We were sure that if we remained focused on the implementation of these initiatives, we would achieve success. Four years down the line, we, like the results we have achieved, even though we also realise that we are not yet where we intend to go ultimately,” he added.

Okonkwo said the bank started mid-year audit last year, adding, “Nobody compelled us to do it. We are required to audit our account once every year, but we did it on our own because of our future aspiration. We decided to adopt international best practices.

“Apart from our reputation as an SME-friendly bank, Fidelity has core competence in corporate banking; Fidelity is still financing the big corporates. On agriculture, we funded one of the biggest rice mills in Nigeria located in Kano, and supported the cocoa value chain in Ondo State, to name a few. We are also very active in food and beverage industries, construction, oil and gas, and iron and steel, among others.”

According to Okonkwo, banks that stay focused on their core business at a time like this will remain profitable.

He said, “If you look at our income distribution in 2017, you will see that we made about 25 per cent of our revenue from non-interest income, which was as a result of investment in digital technology.

“We used digitisation to drive a lot of non-funded income. We also took advantage of our balance sheet optimisation to increase yield in short-term instruments.”

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Banking Sector

Zenith Bank Extends Public Offer and Rights Issue by Two Weeks

Published

17 hours ago

September 10, 2024

Investors King

Zenith Bank Plc on Monday announced that it has obtained regulatory approval to extend its public offer and rights issue by two weeks.

In a statement released via the Nigerian Exchange Limited (NGX), the leading financial institution said its offers for both existing shareholders and new investors have been extended to September 23, 2024, from the initial closing date of September 9.

The bank attributed the extension to the nationwide protest that began on August 1, the same day the offers were opened.

Zenith Bank stated that the extension will provide shareholders with more opportunities to take advantage of the rights issue and allow the general public ample time to subscribe to the public offers.

Banking Sector

Unity Bank Projects N27b In Q4 Earnings, Targets N4b Profit

Published

18 hours ago

September 10, 2024

Investors King

Unity Bank Plc has projected gross earnings of N27 billion and a Profit After Tax of N4 billion in Q4, 2024, in its latest earnings forecast released to the Nigerian Exchange Group.

Although the projected gross earnings represent a marginal increase from the N26 billion projected for Q3 2024, the lender continues to maintain a profitable outlook, with pre-tax profit expected at N4.2 billion.

An analysis of the earnings forecast shows that the lender also expects interest income to rise from N23 billion to N24.5 billion, with net revenue expected to rise marginally by 1.0% to N7.2 billion within the quarter compared to N6.5 billion in Q3, 2024.

Net operating income is projected at N12 billion, while cash flow from financing activities is projected to rise to N481.4 billion from N353.6 billion, a 1.3% projected increase on a quarter-on-quarter basis. This projected growth in cash flow from financing activities continues to reflect the lender’s growing liquidity position which is essential for sustained business operations.

The lender said it expects to cover the milestones with a consistent optimistic outlook in its projection, barring any significant changes in the operating environment, under which the assumptions were made.

The lender noted that it will continue to deliver top-notch customer-centric products and services, especially in the digital lending space following the roll-out of enhanced platforms and channels for superlative customer experiences.

Analysts are of the view that the Q4 forecast reflects a steady growth trajectory on the back of key performance indicators and strategic repositioning to hedge the challenging market conditions.

Banking Sector

UBA Rewards 30 Lucky Customers in Legacy Promo

Published

2 days ago

September 9, 2024

Investors King

As part of ongoing activities to commemorate its 75th anniversary, United Bank for Africa (UBA) Plc, has rewarded 30 loyal customers with over N17 million in the just concluded draw for August.

The winners were announced following a transparent draw conducted at the bank’s headquarters, which was streamed live on YouTube. Representatives from the National Lottery Regulatory Commission (NLRC) were invited to oversee the proceedings, ensuring fairness and compliance with regulations.

The bank said in a statement that inthe top tier, 10 lucky bumper account holders: Joshua Izenobor, Chigozie Victor Abel, Cornelius Peter Nwankwo, Joy Esele Asibor, Mohammed Abubakar, Marachi Jenifer Kevin, Chidinma J. Okoronkwo, Saidu Ahmadu, Philomena Ezekiel, and Peace Ogechi Idoko, emerged as winners of N1 million each.

UBA explained that in the second category, another group of 10 lucky customers were rewarded with N500,000 each. The beneficiaries of this prize are: Elizabeth Warekoromor, Deborah Ijeoma Simon, Prince Chukwuamago, Yohanna Cyrus, Aishatu Aliyu, Djachi Ben-Ikezam, Tibebi Glory Esiteh, Emmanuel C. Udekwe, Ozima Friday Asiku, and Beauty Danasabe.

The third category saw 10 more lucky account holders each receiving N250,000. These winners include: Olusegun Oke, Salisu Adamu, Sola Deborah Adeyeye, Chidozie Nwachukwu, Gloria Abimaje, Anyiwe Stephen Ifeanyi, Kehinde F Adefemiwa, Oluwakemi Olushola Olayande, Adamu Hajara Adamu, and Ruth Adugba

Group Head of Retail & Digital Banking, UBA, Shamsideen Fashola, who congratulated all 30 winners after the draw, encouraged others to keep saving for a chance to win in the next edition, adding that the bank plans to reward 75 winners in each of the three categories, with a total of 195 more customers to be selected in the coming months.

“This is just the beginning of our legacy promo draw, as there are still many more prizes to be won in subsequent monthly draws. These draws are purely transparent, and the next millionaire could just be you. We encourage our loyal customers to follow the stated guidelines to win, and they could just be the next millionaire,” Fashola said.

Group Head of Marketing and Corporate Communications, UBA, Alero Ladipo, said that the bank is not conducting the draw for profit purposes but to ensure that its customers feel a sense of belonging.

“This initiative is part of UBA’s ongoing efforts to appreciate its customers and encourage a savings culture among our account holders. The UBA Legacy Promo is part of our CSR initiative to give back to society,” Ladipo said.