" />
Published On: Fri, Apr 1st, 2016

Fidelity Bank grows revenue by eight percent

Fidelity Bank grows revenue by eight percent

…offers N4.6bn as dividend payout

In an unpalatable operating environment, Fidelity Bank Plc has said that its gross earnings for the period ended December 31, 2015 grew to N146.9 billion from N136.1 billion recorded in 2014 Financial Year (FY).

In the same vein, it promised shareholders N4.6 billion as dividend payout, thus maintaining a tradition of consistent dividend pay-out for the past six years.

According to the lender’s audited financial statements for the period under review, Fidelity Bank posted a rise of 7.9 percent and 0.8 percent in its gross earnings and profit respectively, despite the nation’s harsh operating environment characterised by regulatory and economic headwinds. Profit after Tax (PAT) for the period ended December 31, 2015 rose marginally to N13.9 billion as against N13.8 billion made in the comparable period last year. Whereas total equity increased by 6.0 percent to N183.5 billion from N173.1 billion in 2014 FY, net operating income stood at N83.9 billion, a moderate 12.5 percent rise from N74.6 billion in 2014 FY.

Commenting on the result, Chief Executive Officer, Fidelity Bank Plc, Nnamdi Okonkwo said that the bank’s 2015 FY performance reflects the disciplined execution of the management’s medium term strategy and the resilience of evolving business models despite the extremely challenging business environment in 2015. He explained that the bank improved the earning capacity of its balance sheet even in the face of decline in fee income precipitated by a N10.0 billion reduction in its foreign exchange income.

READ  NDLEA Intercepts drugs meant for Boko Haram in Adamawa

 

“We continued to increase yields on earning assets faster than the growth in funding costs which improved our Net Interest Margin (NIM) to 6.9 per cent in 2015.”  This development, the Fidelity helmsman added, is indeed indicative of the bank’s continual focus on balance sheet optimisation, rebalancing of its loan portfolio in consonance with its medium term strategy and increased growth in retail deposit base. In spite of the strong double digit growth of 12.5 per cent in net operating income, Profit before Tax (PBT) for the period ended December 31, 2015 assumed a downward trajectory, declining by 9.6 per cent to N14.0 billion from N15.5 billion in 2014 Financial Year.

“PBT declined by 9.6 per cent largely due to two critical factors: the 17.1 per cent increase in total expenses due to strategic investments and cost incurred in 2015 to position the business for further growth in line with our aspirations. The increase in impairments due to a more prudent approach adopted with respect to a special regulatory provision which was charged directly to the Profit and Loss (P&L) was responsible for the decline in profit”, he added.  But more importantly, the lender’s cost of risk remained within its guidance of 1.0 percent despite a 6.7 percent growth in the loan book and weaker macro-economic indices in the 2015 FY.

While total expenses rose by 17.1 percent to N64.1billion from N54.8 billion in 2014 FY, deposits fell to N769.6 billion from N820.0 billion representing a 6.1 percent decline.

READ  Lagos will bring about world class childhood disability intervention-Joyce Onofowokan

Okonkwo explained that the decline was due to the implementation of the Treasury Single Account (TSA), adding that  the disciplined execution of the bank’s retail strategy continued to deliver strong results as savings deposits grew by 22 percent YoY in the 2015FY.

“Our NPL ratio remained constant at 4.4 percent while our regulatory ratios remained well above the set thresholds, our capital adequacy ratio at 19 percent gives us ample leverage to take advantage of emerging business opportunities”, Okonkwo stated.

In the new business year, the bank says it will focus on redesigning its systems and processes to enhance service delivery, disclosing plans to embark on cost optimisation initiatives aimed at reducing expenses by 5 percent. The bank will also adopt proactive risk management strategies, increase customer adoption/migration to its digital platforms and grow its retail banking market share.

The board of directors of the Bank said it is offering investors 16 kobo per share dividend for the period ended December 31, 2015. The Bank says the 16 kobo dividend is payable to shareholders whose names appear on the Bank’s register as at the close of business on April 18 to April 22, 2016, while the Annual General Meeting (AGM) and payment date is May 5, 2016. The lender said the 16 kobo per ordinary share of 50 kobo each amounts to N4.6 billion and this is subject to Withholding Tax at the appropriate tax rate, which will be deducted before payment.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Most Shared

Recent posts

  • It would be utterly irrational for Nigerians to vote for Buhari again- Junaid Mohammed

    Second Republic lawmaker, Dr Junaid Mohammed has noted that President Muhammadu Buhari has performed poorly in office and it would be irrational for Nigerians to vote for him in 2019. Dr Mohammed who made the assertion in an interview with Vanguard on Saturday, also criticized Buhari for being a poor reader who according to him, […]

  • Bayelsa tour: Obasanjo lays foundation for refinery

    Former President Olusegun Obasanjo continued his visit to Bayelsa State after inaugurating some projects of the state government on Friday. The former president continued his tour of the state on Saturday with the laying of the foundation for the establishment of Azikel Refinery. The refinery is owned by Dr Eruani Godbless, a prominent businessman and […]

  • Quite notice, hate speeches and President Buhari’s Northenisation/Islamisation agenda by Professor Ben Nwabueze

    Quite notice, hate speeches and President Buhari’s Northenisation/Islamisation agenda by Professor Ben Nwabueze NATURE OF HATE SPEECHES In the aftermath of the divisions in the country caused by President Buhari’s Northernisation/Islamisation Agenda, as manifested in his lopsided strategic appointments that unfairly favour the North as against the South, and the complete exclusion of the South-East […]

  • Chief Adeniyi to Tinubu: Withdraw your support for Buhari or risk losing influence in Yoruba land

    OBINNA EZUGWU Veteran columnist and elder statesman, Chief Adetola Adeniyi has warned former Lagos governor, Senator Bola Ahmed Tinubu against supporting President Muhammadu Buhari’s second term bid, as according to him, such could mark the beginning of the end of his influence in Yoruba land. Chief Adeniyi who led the Global Intelligentsia for Buhari, a […]

  • Killings: Buhari condemns action, sends Defence Minister to Zamfara

    President Muhammadu Buhari has strongly condemned Thursday’s massacre of innocent persons in Birane village, Zurmi Local Government Area of Zamfara State. The President stated this in a statement issued on Friday by his Senior Special Assistant on Media and Publicity, Mr Garba Shehu, following the death of at least 18 persons as a result of […]

  • Obasanjo visits Jonathan at Bayelsa residence

    Former President Olusegun Obasanjo on Friday visited former President Goodluck Jonathan at his home in Bayelsa State. Dr Jonathan welcomed the elder statesman who was in his home for a private dinner, in company with his wife, Patience. Earlier before the visit, former President Obasanjo inaugurated a government specialist hospital in the state and unveiled […]

  • NNPC dispatches 29.058m litres of PMS to 13 states

    The Nigerian National Petroleum Corporation (NNPC) said it supplied a total of 29.058 million litres of Premium Motor Spirit (PMS) popularly known as petrol to thirteen Northern states in three days. In its report on daily dispatch to filling stations made available to the News Agency of Nigeria (NAN) in Abuja on Friday, it named […]

  • Lagos will bring about world class childhood disability intervention-Joyce Onofowokan

    An area in which different levels of governments in Nigeria have remained loudly silent and painfully indifferent is childhood disability. Children with disabilities and their parents have over the years ridden on waves of disillusion, despair, and decay. They constitute a tribe of the silent minority that the society has conveniently allowed to disappear into […]

  • Ports now more efficient with FG’s reform – Izuwah

    The Infrastructure Concession Regulatory Commission (ICRC) has said that Nigerian ports were now witnessing more efficiency following the reforms of the Fedearl Government. Mr Chidi Izuwah, Acting Director-General of the commission said this during an inspection tour of facilities of the Nigeria Port Authority (NPA) in Rivers state. The acting DG said that the policy […]

  • Power: Nigeria gets $486m W/Bank credit

    World Bank has approved a 486 million dollars credit facility to Nigeria for electricity grid improvements, the lender said on Friday. “The investments under the Nigeria Electricity Transmission Project will increase the power transfer capacity of the transmission network and enable distribution companies to supply consumers with additional power,” the World Bank said. Nigeria’s  power […]

  • Army places N3m bounty on Boko Haram leader

    The Nigerian Army has announced a cash reward of N3million for information on Boko Haram leader Abubakar Shekau. “The Nigerian Army will give out Three Million Naira (N3,000,000.00) cash reward for any credible information that leads to the arrest of Abubakar Shekau, the fugitive factional Boko Haram terrorists’ group leader,” a statement by the Director, […]

  • Ethiopian Prime Minister Desalegn resigns

    Hailemariam Desalegn, A day after President Jacob Zuma resigned as South African President, Ethio­pian Prime Minister, Hailemariam Desalegn, Thursday announced his resignation in a televised broadcast amid political turmoil in Africa’s fastest-growing economy. The announcement came just after the government released hundreds of political prisoners, including some of the most prominent opposition members in the country, […]

  • FRSC officials donate blood to accident victims in Osun

    The Federal Road Safety Commission (FRSC), Officers, Ilesa Unit, has donated blood to improve health delivery schemes as well as to save accident victims. Speaking at the occasion, Mr Samuel Oyedeji, the Ilesa Unit Commander Federal Road Safety Commission (FRSC) said on Wednesday, that the blood donation programme was organised to mark 30th Anniversary of […]

  • Zuma’s exit ushers in new South African President

    South Africa prepared to welcome wealthy former businessman Cyril Ramaphosa as its new president Thursday after scandal-tainted Jacob Zuma resigned under intense pressure from his own party. Zuma announced he had stepped down in a late-night television address in which he took some digs at the African National Congress (ANC) party that had threatened to […]

  • Zuma resigns

    Jacob Zuma has finally bowed to pressure and stepped down from office as South African President The embattled president made the announcement in a broadcast to the nation on Wednesday evening, noting that he has stepped down “with immediate effect.” Zuma has been under pressure to step aside following allegations of corruption. On Tuesday, he […]

  • DPR fines oil marketer N1.2bn for petrol diversion

    The Department of Petroleum Resources (DPR), said it fined one oil marketing company, A.Y. Maikifi, based in Kano, the sum of N1.2 billion for diverting 115 truckloads of the products Mr. Mohammed Saidu, Head, Public Affairs Unit, DPR Abuja Zone, disclosed this in Abuja, on Wednesday while addressing newsmen. He said that about 162 truckloads […]