The Nation Newspaper

Tag: Fidelity

  • Equities market gains N137bn on capitalised stocks

    Equities market gains N137bn on capitalised stocks

    Equities market opened the week on Tuesday on a green note with a gain of N137 billion.

    Market capitalisation gained N137 billion to close at N28.1 trillion as against the N27.963 trillion posted at the last trading session on Thursday.

    The All-Share Index rose by 250.75 points or an increase of 0.49 per cent to close at 51,606.49 points from 51,355.74 points recorded on Thursday.

    The market gain was driven by price appreciation in large and medium capitalised stocks amongst which are MTN Nigeria Communications, Stanbic IBTC Holdings, Unilever Nigeria, Berger Paints and Access Holdings.

    A broker stated that: “we expect bullish sentiments to resurface as investors look to take advantage of fundamentally sound stocks with low pricing, with the first quarter of 2023 earning season already underway.

    “However, we see room for pockets of profit-taking activities.’’

    Thirty-three stocks recorded gains on Tuesday, while nine lost in value.

    Japaul Gold & Ventures recorded the highest price gain of 10 per cent to close at 33k per share.

    Honeywell Flour Mills followed with a gain of 9.91 per cent to close at N2.55, while Berger Paints gained 9.87 per cent to close at N8.35 per share.

    Transcorp rose by 9.8 per cent to close at N2.69, while Ikeja Hotels appreciated by 9.35 per cent to close at N1.52 per share.

    Wapic Insurance led the losers chart as it dipped by 7.32 per cent to close at 38k per share.

    Nigerian Exchange Group followed with a decline of 4.89 per cent to close at N25.30, while RT Briscoe declined by 4 per cent to close at 24k per share.

    AIICO Insurance shed 3.64 per cent to close at 53k per share, while Royal Exchange Assurance dipped by 3.17 per cent to close at 61k per share.

    Total volume of trade increased by 247.9 per cent to 2.09 billion units, valued at N8.849 billion, and exchanged in 6,404 deals.

    Transactions in the shares of Transcorp topped the activity chart with 1.66 billion shares valued at N4.093 billion.

    Access Holdings followed with 217.419 million shares worth N2.313 billion, while Fidelity Bank traded 30.706 million shares valued at N175.789 million.

    Zenith Bank traded 27.553 million shares valued at N608.809 million, while United Bank for Africa transacted 18.212 million shares worth N143.601 million.

  • Winner emerges in Fidelity Save-4-Shelter promo

    Winner emerges in Fidelity Save-4-Shelter promo

    Hadiza Suleiman has emerged the winner of an exquisite four bedroom duplex in the bi-monthly draw of Fidelity Save 4 Shelter Savings promo held in Lagos at the weekend.

    The duplex is located at Lingo Estate, Lokogoma Abuja. Strategically designed to advance government’s financial inclusion policy, the promo, is part of the bank’s contribution towards bridging Nigeria’s housing deficit.

    During the draw, six other customers also emerged winners of Rent Support worth N6 million while 12 other customers were pronounced winners of consolation prizes such as fridges and generating sets.

    The bank’s Managing Director/Chief Executive Officer, Nnamdi Okonkwo, said the initiative raises awareness on the need to enhance savings culture amongst Nigerians.

    “As an active participant in the economy, we are supporting the government of Nigeria by making savings available for national development,” he said.

    The draw was conducted with representatives of the National Lottery Regulatory Commission (NLRC), Consumer Protection Council (CPC) in attendance.

    Head Information Technology, National Lottery Regulatory Commission (NLRC), Ozobialu Olisa, commended the bank for the initiating the promo, adding that loyal customers ought to enjoy this type of benefits because it encourages savings culture. “Fidelity constantly complies with the regulatory mandates of the commission. “As we have observed today, the draws were transparent”, he added. Two other duplexes located in prime locations in Lagos, Port Harcourt, are still up for grabs in subsequent bi-monthly draw.

     

  • Fidelity tasks SMEs on funding challenges

    Fidelity tasks SMEs on funding challenges

    Clear business model or concept to be captured in the business plan, clear marketing and sales strategy, competent and experienced management, clear competitive advantage and strong financials have been identified as key remedies to the challenge of access to finance faced by SMEs.

    Executive Director, South, Fidelity Bank Plc. Aku Odinkemelu,   made the assertion in Enugu at the Bank’s maiden edition of the regional conference for the South-East region, themed: ‘Positioning SMEs for Growth in the Southeast Region’ recently.

    Odinkemelu, who was the lead discussant on the panel discussion session on ‘Overcoming Barriers to Funding’, said SMEs in Nigeria are confronted with key challenges of low-levels of business management and finance.

    She identified the key challenges to include poor managerial/entrepreneurial skills and inadequate business processes; inadequate research/market information to determine business viability; poor access to market; limited access to the export markets; inadequate record keeping.

    Others are absence of proper business planning; lack of long term strategy and poor business model; low technology leverage; key man risk, etc, as well as finance, which has to do with limited options; high cost; amount and tenor.

    Odinkemelu tasked SMEs to possess what she called the 5Cs of Credit- conditions, character, capacity, capital and collateral- for banks to enable them become more attractive and eligible for funding.

    She said banks want to know the purpose of the loan, local economic climate and conditions within the industry and other related industries that could affect the business.

    “Banks also want to see a measure of integrity and trustworthiness. Your credentials and references, credit reports, references from customers, suppliers, staff and other third parties, and other technical competence, managerial competence, financials, market size/profile, service offerings/income lines, pricing strategy, etc, money promoter must have invested in the business evidencing his commitment, and secondary repayment source,” she said.

    Earlier in his remarks, the MD & CEO, Fidelity Bank Plc., Nnamdi Okonkwo, said the theme of the conference was at the heart of the bank’s passion and commitment to building entrepreneurs in the Southeast region of Nigeria.

    “Whilst we have always supported small businesses, our renewed focus on the SME segment is driven by the increasing role of SMEs as critical agents of economic development and transformation in Nigeria,” he said.

    “In line with this, we created a dedicated SME Banking Division (Fidelity Managed SMEs), which focuses on providing solutions to the challenges faced by SMEs through a multifaceted approach, one of which is our flagship SME-focused radio programme (the Fidelity SME Forum), a major component of the business advisory and business management capacity building end of our business.

     

  • Fidelity Bank redeems prizes for ‘Save-for-Shelter’ promo winners

    Fidelity Bank has redeemed the prizes won by customers in the ongoing ‘Save-for-Shelter’ promo. A Fidelity Bank customer based in Lagos, Omowunmi Iyiola, who won N2 million cash got the prize last weekend.
    Two won N1 million each, six others, N500,000 each. Twelve customers won consolation prizes of six refrigerators, and six generators.
    The promo, which will last for six months, is scheduled to dole out three new houses in Lagos, Abuja, and Port Harcourt, 60 refrigerators, 60 generators, and N35 million in total.
    The monthly draw is open only to savings account holders. Existing accounts have to make a minimum deposit of N10,000 to participate, while, for new accounts, it is a minimum of N20,000.
    According to the bank’s Executive Director, Shared Services, Chijioke Ugochukwu, the exercise was designed to boost the nation’s economy, by increasing financial inclusion and improving savings culture among its customers.
    Explaining the rationale for rewarding its customers, the bank’s Managing Director, Nnamdi Okonkwo said: “The purpose of the draw is not for people to win a house – yes, that’s an endpoint, but that’s not why we are doing it. We are very focused on including financial inclusion; which means that we want a lot more people to come into formalised banking arrangements, rather than keep money in funny places.
    “We want people to save part of what they earn–encouraging savings culture – and if in the process of doing that, you end up becoming a landlord or landlady, I think it’s added incentive for people to save.”
    Okonkwo added that the overriding consideration is to improve the savings culture of the people and increase financial inclusion, because a lot of people don’t even have bank accounts. “If this is one way to encourage them to start banking, even if they are starting with savings account, then we would have achieved something that’s very important for economic development,” he said.
    He said the promo is the lender’s means of reducing the housing deficit in the country and making life better for customers. He urged Nigerians to develop the culture of saving for the rainy day.

  • Fidelity Bank reaffirms commitment to stakeholders’values

    Fidelity Bank Plc would continue to leverage on emerging opportunities and its strong financial position to create and sustain values for all stakeholders.

    Managing Director, Fidelity Bank Plc, Mr. Nnamdi Okonkwo, gave the assurance at the weekend during a visit to the Nigerian Stock Exchange (NSE).

    He said the bank has structured and upgraded its processes in order to continue to deliver value to all stakeholders.

    He noted that the conclusion of the bank’s N30 billion local bonds issued this year was another evidence of the bank’s commitment to continue to enhance profitability.

    He added that the bank put various measures in place before unveiling its new identity, among which is strategic focus on balance sheet optimisation.

    He pointed out that the bank has consistently paid dividend to shareholders over the years, adding that the dividend paid in the last financial year, amid harsh economic environment attested to the bank’s readiness to continually improve in its operations.

    “In May, we came to the floor and celebrated 10 years of listing and it has helped our funding strategies. We have successfully issued 300 million Eurobond and five year instrument and we have consistently paid dividend to shareholders,” Okonkwo said.

    He urged investors to invest in the bank for better returns in form of capital appreciation and dividend going forward.

    Fidelity Bank Plc recently unveiled its new identity, saying the move was aimed at strengthening is operations in order to deliver superior customer satisfaction. It also explained that the rebranding exercise was to bring about convergence in its services, to suit both the old and new generation customers.

    Okonkwo had during the launch of the new identity reiterated the financial institution’s commitment towards customer service, saying that the bank was also targeting the youth population.

    While commenting on the new logo of the bank, he explained that the deep blue colour reminds the financial institution of its “rich, solid background as a bank.”

    “It holds there an accommodative path which inspires us to go into the future,” he stated, adding that the green colour,  stands for fertility, growth and progress to the future, while the white line at the middle stands for safety, purity and a guiding light.

    According to the bank chief, the new identity took the bank months of strategising, planning and execution, saying that it needed the rebranding exercise to be in touch with the changing realities of the modern time.

    “In business, there must be a time you need to change. For Fidelity Bank, there are many reasons why we need to change. Historically, we are perceived to be a conservative bank. There is nothing wrong with being conservative; after all, that is how we gained our credibility, but you need to know that the world is changing With advance in technology, with globalisation and change in demographics, we must wake up to the realities of today,” Okonkwo said.

     

  • Fidelity emerges ‘Best Bank to Work for in Nigeria’

    Fidelity emerges ‘Best Bank to Work for in Nigeria’

    Fidelity Bank Plc has emerged the best bank to work for in Nigeria.

    In a study conducted by Venture Africa, an online platform for news and analysis about African businesses, in conjunction with Jobberman.com, Nigeria’s employment website, the lender emerged one of the top 12 most preferred places to work in the country.

    The report tagged “Top 100 companies for Nigerian millennials” surveyed young Nigerians born between 1982 and 2003 and measured company culture, dream-company, staff welfare, gender equality, government institution, company’s prestige, salary, and non-salary benefits. It also looked at the level of satisfaction, salary consideration, level of contentment, career growth, concerns outside work and work-life balance amongst others.

    According to the study, the lender led all other banks in the country in all the measuring indices.

    In a statement, its Managing Director/Chief Executive Officer, Nnamdi Okonkwo said the development is a testimony to the bank’s robust human capital management policies which focuses on enhancing the lives and wellbeing of employees.

  • Fidelity, Stanbic, Sterling go for N84b new capital

    Fidelity, Stanbic, Sterling go for N84b new capital

    Tough regulatory policies, especially the hike in Cash Reserve Ratio (CRR) and drive to finance more Small and Medium Enterprises (SMEs) are pushing banks into seeking additional capital, termed Tier-2 funds.

    The CRR is a portion of bank’s deposits kept with the Central Bank of Nigeria (CBN), and it is currently 75 and 20 per cent for public sector and private sector deposits.

    Three lenders, Sterling Bank Plc, Fidelity Bank Plc and Stanbic IBTC Holdings Plc are seeking a combined capital of N84 billion from investors to enable them fund expansion plans and stimulate balance sheet positions.

    Sterling Bank plans to raise between N20 billion and N30 billion this year to fund its expansion plans. Fidelity Bank Plc at the weekend signed off a N30 billion 16.48 per cent fixed rate bond due in 2022 while Stanbic Holdings Plc said it will raise N24 billion in a rights issue once shareholders approve the transaction.

    Stanbic IBTC, majority owned by South Africa’s Standard Bank , said it would seek approval at a general meeting on June 3. The bank’s first quarter pretax profit fell 46 per cent to N4.81 billion ($24 million) against the same period last year. Stanbic did not give a reason for the decline in profit but said in a statement that revenues rose to N33.73 billion for the period to end-March from N30.22 billion a year ago.

    Fidelity Bank Chief Executive Officer Nnamdi Okonkwo said the facility is part of the bank’s efforts at deepening the SMEs sector which, arguably, is the engine room of the economy.

    He spoke at the signing which had the full complement of the Board, Planet Capital Limited, Lead Issuing House/Underwriters, representatives from the Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NSE), Registrars and Stock brokers.

    Sterling Bank’s Chief Financial Officer (CFO)/Executive Director Mr. Abubakar Suleiman said the bank was on track on its expansion targets which it unveiled in 2013 and would soon embark on another phase of its growth strategy.

    According to him, the bank currently has 1.5 million customers and has been able to achieve over three per cent market share from one per cent a few years ago. He revealed that from 84 branches in 2006, the lender’s branch network should hit the 200 mark by the end of the year adding that it would increase the number of its Automated Teller Machines (ATMs) to 1000 by the end of this year.  He also stated that the bank will soon deploy a new core banking application which would significantly boost the quality of its operations and service delivery.

    The Executive Director said that the bank’s goal was to be among the top five lenders in the industry not in terms of balance sheet size but in the areas of quality service delivery and compliance to regulations.

    He pointed out that there were banks with much bigger balance sheets which were not meeting customers’ expectations in key areas, stressing that as Sterling Bank expands and becomes a bigger financial institution, it will continue to outperform its peer group.

    As he put it, “We have consistently outperformed our peer group and we will outperform the next group. We want to be there when it comes to service delivery, in terms of compliance to regulations and how we are perceived as good corporate citizens.”

    The CFO noted that regulatory headwinds, especially the hike in Cash Reserve Requirements (CRR) on public sector deposits had impacted banks’ profitability and restricted their lending capacity to finance economic growth.

    He argued that the amount of bank deposits that the CBN had sterilized as a result of the 75 per cent CRR on public sector deposits and 20 per cent CRR on private sector deposit was “unprecedented” and had constrained banks’ capacity to lend.

    He pointed out that the deposit with the CBN were non-earning adding that not only does this impact banks’ bottom line but it also prevents lenders from funding businesses.  He however emphasised that   despite the tough operating environment Sterling Bank was still committed to meeting its expansion targets.

    Afrinvest West Africa Plc  Managing Director Ike Chioke said the limitation on public and private funds by the Central Bank of Nigeria (CBN) and the emerging deals within the corporate space, such as the power sector, have increased the need to shore up capital. According to him,  Eurobond issuances come at attractive rates relative to the domestic market and presently have many viable on-lending outlets.

    Chioke, who spoke on the theme: “Navigating growth in a challenging environment” admitted the danger of potential pressure that may arise upon the payment of coupon on Eurobonds raised by banks, adding that the lenders will require the dollar bi-annually to fulfill obligations to Eurobond holders.

    He insists the applauded privatisation of the power sector in 2013 may begin to reveal structural and financial challenges in the near term if not well-managed, given that approximately $2.5 billion was raised by the Bureau of Public Enterprises (BPE) from the privatisation of Power Holding Company of Nigeria (PHCN’s) generating (GENCOS) and distribution (DISCOS) companies.

    About $5.7 billion additional fund was raised by the Federal Government from last year’s sale of the National Integrated Power Plants (NIPP).A significant portion of the funding for the acquisition of these assets by private sector investors was provided by local banks with minimal equity contributions. This, Chioke said, has absorbed an enormous level of funds from banks.

    “This investment is, however, supposedly, yet to yield returns and has in part led to the rush for Eurobonds by banks in an attempt to restructure credit to the power sector. A major apprehension is the currency mismatch as cash flows from power assets are generated in naira,” he said.

     

  • Fidelity CEO: BVN’ll boost customers’ credit score

    The ongoing bank verification number (BVN) enrolment will enhance the credit score of bank customers in Nigeria, the Group Managing Director/Chief Executive Officer of Fidelity Bank Plc, Mr. Nnamdi Okonkwo, has said.

    A credit score is primarily based on credit report information typically sourced from credit bureaus. Lenders use credit scores to determine who qualifies for a loan, among others.

    Okonkwo, while speaking to journalists, also said the BVN would enhance access to credit to small and medium scale enterprises (SMEs).

    There are about 17 million registered SMEs in Nigeria. In most countries, SMEs account for up to 70 per cent or more of businesses, yet in developing economies like Nigeria, SMEs suffer from lack of access to finance.

    Thus, the Fidelity Bank boss explained: “In more developed parts of the world, they have credit rating systems and social identification system. For example, if I am Nnamdi Okonkwo, there might be other 1,000 Nnamdi Okonkwos, but each Nnamdi Okonkwo has a unique number assigned by his country such that whenever you put that number in, everything about that person comes out. We are gradually getting to that.

    “Until we get there, credit scoring system is still a challenge. Therefore, it is possible that this same Nnamdi Okonkwo can go to a bank, take a loan and default, move to another bank, still take a loan and default and nobody sees that his credit history is bad. But with what the CBN has done with the BVN, that will be taken care of. That is why I am advising everybody to go and register and get your BVN.

    “When each of us have our BVN, which is tied to our thump, if I need to lend money to you, I can check. If the person is a notorious debtor in other banks, then he doesn’t get a loan from me and that protects all of us because the bank does not own all the money. Most of the monies that banks use to do business belong to depositors. So, whatever initiative the CBN is taking, is to protect depositors and the larger economy.

     

  • Fidelity Bank positions SMEs for growth

    Fidelity Bank positions SMEs for growth

    Fidelity Bank Plc has reiterated its commitment to Small and Medium Enterprises (SMEs). Its Managing Director/Chief Executive Officer, Nnamdi Okonkwo who spoke at the Annual SME Conference organised by the bank in Lagos, said there is social impact in banking SMEs.

    The bank chief said  banking SMEs also promotes sustainable business model for the operators and improved relationship banking. “I am not saying that there is anything wrong with banking the corporate. We are very strong in that, remember our history as a merchant bank. But if we don’t bank SMEs, how do we produce the Dangote of tomorrow?  What entrepreneurs need is entrepreneurial zeal, determination and vision. We need more potential Dangotes in this country,” he said.

    He said the bank has been recognised in various ways as the best SME bank. Okonkwo noted that the last three years, the bank has increased its focus on SMEs. He said the lender took the decision because of its economic impact.

    “We see this sector as a critical agent of economic development and transformation in Nigeria.  It is also in line with the federal government’s National Economic Development Programme (NEDP) that was launched by President Goodluck Jonathan earlier this year. No economy can ignore the SMEs,” he added.

    Managing Director, Swift Networks, Charles Anudu, said entrepreneurship is not the easiest way to make money, but is about making life convenient for people.

    He said entrepreneurs need to be patient, have will-power and committed to their goals for such objectives to be achieved.

  • Fidelity,Sterling, others go for Enterprise Bank

    Fidelity,Sterling, others go for Enterprise Bank

    The race to acquire Enterprise Bank has reached its final stage. Fidelity Bank, Sterling Bank, Standard Chartered Bank, Ecobank Transnational Incorporated (ETI) and Heritage Bank Limited are among the bidders that indicated interest in acquiring the bank after the Asset Management Corporation of Nigeria (AMCON) offered it for sale since last September, report by Afrinvest West Africa Plc has shown.

    AMCON’s spokesman, Kayode Lambo said the corporation is expected to by the end of this week, send names of successful bidders for the lender to Central Bank of Nigeria (CBN) for approval.

    He explained that it is after Citibank and Vetiva, advisers to the deal, have concluded their work, that the corporation’s management and board will consider the result before the approved buyers are officially sent to the CBN.

    The Afrinvest report titled: ‘Nigerian Banking League- The Fate of Small Players’ said the Enterprise Bank sale presents the Tier-2 banks with the opportunity to leverage both the scale economies and the financial advantage, since the market is willing to pay above 60 per cent premium for being classified as a Tier-1 bank.

    Enterprise bank, which was described as one of the cleanest banks has received huge interest from a lot of bidders.

    Afrinvest said the era of double digits earnings growth in the Nigerian banking industry has gradually begun to thin-out, adding that the numerous liquidity tightening policies introduced by the CBN has constantly exerted pressure on the banks profitability within the last few months.

    According to the report, the constant liquidity tightening rhetoric as reflected in the CBN’s policy stance has had a significant impact across Nigerian banks (Tier-1 and Tier-2).

    “The hawkish policy designed in 2013, targeted at price and exchange rate stability, have consistently squeezed the earnings of the banks, particularly the 50 per cent Cash Reserve Ratio, which effectively removed approximately N1 trillion from the financial system,” it said.

    Enterprise Bank is wholly owned by AMCON. Other bridged banks owned by AMCON are Keystone and Mainstreet banks. The corporation had acquired the lenders in August 2011, after the intervention by the Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN). Enterprise Bank was created from the ashes of the defunct Spring Bank, while Keystone Bank and Mainstreet Bank were created from the defunct Bank PHB and Afribank respectively.

    As part of efforts to divest its shareholdings in the three banks by 2014, starting with Enterprise Bank, AMCON had appointed Citigroup Global Markets Limited (Citi) and Vetiva Capital Management Limited as Financial Advisers, as well as G. Elias & Company as Legal Adviser to the transaction.