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Fidelity Bank Holds AGM, Assures of Greater Returns Through with Digitization

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Shareholders of Fidelity Bank Plc are in for greater returns in 2019 financial year with the lender’s sustained investment in digital innovations that would engender enhanced customer service delivery and open fresh streams of revenue.

Indications to this effect were given in Lagos, Friday by the Fidelity Bank CEO, Mr. Nnamdi Okonkwo during the Bank’s 31th Annual General Meeting (AGM) where the audited financial report for the year ended December 31, 2018, was presented to shareholders.

According to Okonkwo, the bank will not relent on efforts to increase the adoption rates and migration of customers to its digital banking platform. “We are investing heavily in digital technologies to drive our retail strategy, reduce cost and consequently improve revenue and returns for our shareholders” he stated.

With 25 percent of the bank’s fee-based income coming from digital banking, the Fidelity boss disclosed that the lender is introducing a digital lending solution and AI-Chatbots to spur further growth in the industry verticals, where it currently operates.

On the overall outlook of the bank, Okonkwo said Fidelity Bank was on track towards breaking in to the league of Tier 1 bank by 2022. “The 2018 financial year marked the beginning of the second phase of the growth aspirations of your Bank and I am happy, we closed the year impressively”, he stated.

Gross earnings in FY2018 increased by 4.8 percent to close at N188.9 billion driven primarily by 22.7 percent growth in earning assets. Total deposit, increased by 26.3 percent to N979.4 billion from N775.3 billion, just as current and domiciliary accounts grew in double digit

In other indices Profit Before Tax soared by 30.6% to N25.1BN, when compared with the 19.2BN it recorded in 2017. Similarly Profit After Tax (PAT) increased by 29.0 percent to N22.9 billion from N17.8 billion in 2017.

Shareholders commended management and staff for growing the fortunes of the bank in the last financial year. They made a plea for better returns in 2019 and unanimously approved the proposed dividend of N3.19 billion, which translates to 11kobo per ordinary share of 50k held by investors at the close of business on April 12, 2019.

Chairman, Association for the Advancement of the Rights of Nigerian Shareholders, Dr. Farouk Umar who lauded the bank for its consistent dividend payout, charged Management to continue to record better financial performances.

Mr. Timothy Adesiyan, President, Nigeria Shareholders Solidarity Association (NSAN) extolled the bank for its impressive showing in digital banking. “Digital banking has shown us increased profitability and progress. Kudos to Fidelity Bank he said.

Whilst commending the management of Fidelity Bank for its participation in the Bank of Industry (BOI) Traders Moni Scheme, he said “we are quite appreciative that the cost of risk has reduced considerably in the bank from 1.5 percent in 2017 to 0.5 percent”.

Speaking during the meeting, Chairman, Board of Directors, Mr. Ernest Ebi assured shareholders that the Board will continue to provide the right leadership at Board level, with focus on governance, risk management and capital preservation. “Every action and everything we have done thus far have been around these areas. The fundamentals are very strong we intend to keep things that way” he said.

BUSINESS

Zenith Bank Records Improved Half Year 2019 Results, With Interim Dividends Of 30 Kobo Per Share

Gbemileke Ajayi

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In a clear demonstration of its resilience and strong market share, Zenith Bank Plc has announced its audited results for the half-year ended 30 June 2019, recording positive growth across key financial metrics, thus affirming the bank’s position as one of the leading financial institutions in Africa.

As a testament to its commitment to its shareholders, the bank also announced a proposed interim dividend pay-out of 30 kobo per share.

Gross earnings grew by 3% from ₦322.2 billion to ₦331.6 billion driven by the significant growth of 24% (YoY) in non-interest income from ₦88.6 billion in H1 2018 to ₦109.7 billion in H1 2019. In particular, fees from electronic products increased by ₦17bn (168%) from ₦10bn in H1 2018 to ₦27 in H1 2019, demonstrating significant progress in our retail banking initiatives. This top-line growth filtered through to the bottom-line as Profit Before Tax (PBT) increased to ₦111.7 billion reflecting a 4% growth over ₦107.4 billion reported in H1 2018 with earnings per share (EPS) increasing by 9% to ₦2.83 in H1 2019 from ₦2.60 compared to the prior period.

Between December 2018 and June 2019, the Group’s total deposit increased by 3% with retail deposits growing by ₦267 billion (31%), from ₦861 billion to close at ₦1.1 trillion. Despite the growth in our deposit base, we optimized interest expense leading to a 4% reduction from ₦74.7 billion to ₦72.1 billion due to the Group’s improved funding mix and our profound treasury management skills. Net Interest Margins (NIMs) witnessed a compression from 10% in the same period last year to 8.6% in H1 2019, as a result of the declining yield environment but the cost of funds improved from 3.4% to 3.0%.

Our robust risk management ensured that our absolute Gross Non-Performing Loans (NPLs) remained flat. However, the marginal movement in NPL ratio was as a result of the 3% reduction in our loan book from ₦2.02 trillion as at December 2018 to ₦1.95 trillion at the end of the period. We are creatively deploying new retail loan products to ensure we capture a reasonable share of the retail loan market. We remain committed to maintaining our strong balance sheet with a liquidity ratio at 74.6% and Capital Adequacy Ratio (CAR) at 25%, ensuring we remain above regulatory thresholds.

Zenith Bank Half Year 2019 Abridged Financials

Going into the second half of the year, we will continue to consolidate our leadership in the corporate space while our retail banking drive will continue unabated. We expect to see an improvement in economic activities even as we maintain our promise of delivering a unique service experience to our customers.

Consistent with this superlative performance and in recognition of its track record of excellent performance, the bank was recently ranked as the Most Valuable Banking Brand in Nigeria in 2018 by The Banker Magazine. Similarly, Zenith Bank was recognized as the Best Corporate Governance Bank in Nigeria by The World Finance for the sixth time just as Ethical Boardroom, a Europe based Boardroom watchdog reaffirmed this recognition by naming the bank as the Best Bank in Corporate Governance in 2018. Recognition has also come the way of the bank as it was recently named as the Best Institution in Sustainability Reporting in Africa 2018 (SERAS Awards) and the Bank of the Year 2018

 

(BusinessDay).

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UBA Partners LCCI For 2019 Lagos International Trade Fair, Promises Customers 20% Discount On Registration

Peter Okunoren

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Pan African financial services institution, United Bank for Africa (UBA) Plc, and the Lagos Chamber of Commerce and Industry(LCCI) have partnered to organize the 2019 edition of the Lagos International Trade Fair.

The Fair, which holds between November 1st and 10th, 2019, is the 33rd edition and is expected to provide an avenue for networking and other business opportunities that will assist to catapult business activities in Africa’s largest and busiest city, Lagos and in Nigeria.

UBA, which is the headline partner will be working together with LCCI, to provide a veritable platform that is intended to grow both domestic and international trade. It further presents participants and visitors with opportunities to seal medium and top business deals.

In line with UBA’s unflinching support to the growth of small and medium enterprises (SMEs), the bank is giving a 20% discount to its Small and Medium business customers who register to attend the fair.

UBA’s Group Head, Marketing, Mrs. Dupe Olusola, who expressed excitement at the partnership, noted that the bank, with its extensive spread across Africa and other major economies of the world, is always on the lookout for partnership opportunities that will benefit the business environment and the economies where it operates.

Olusola noted that the Bank is delighted as this year’s Lagos International Trade Fair is coming after a very successful organization of UBAmarketplace by the Bank in Abuja, where over 120 SMEs from 20 African countries exhibited their products, attracting over 50,000 footfalls.

She said, “UBA, the Pan African financial institution, has branches in 20 African countries, including the United Kingdom, the United States of America and France and has always been involved in activities that aim to strengthen business connections and networks across key economies.

“Thus, we have decided to partner with LCCI to promote this year’s fair which is in its 33rd edition because the Lagos International Trade Fair has become a genuine avenue for both domestic and international trade through business to business meetings, product launches, enlightenment opportunities for government agencies’ programmes, and international trade partnership deals across borders” she explained.

She added that the partnership will also offer the bank the opportunities to showcase its array of products to its teeming and new customers, adding that the bank will set up stands at various points to serve its customers and attend to various concerns.

The Director-General of the Lagos Chamber of Commerce and Industry, Mr. Muda Yusuf who praised the collaboration between both institutions, noted that it is a partnership that is expected to yield great benefits, owing to the fact that the LITF hosts an average of 2,000 exhibitors annually, with over 200 foreign exhibitors from 16 countries.

He also added that arrangements have been put in place to make this year’s fair even bigger and better than the previous editions, adding that already, existing and potential exhibitors have been responding positively to register and participate at the Fair.

“We at LCCI believe that this is part of the bold initiatives of the bank with a corporate culture founded upon strong organizational values and performance-driven operating standards”, Yusuf said.

Yusuf stressed that the Chamber would maintain the brand promise of the Fair, with the theme ‘Connecting businesses, Creating value’, adding that this will be sustained this year in all its marketing campaigns.

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BUSINESS

Win N200,000 Cash Prize In The Zenith Bank #ZBZeroBalanceChallenge

Gbemileke Ajayi

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Win big in the Zenith Bank #ZBZeroBalanceChallenge ⠀
How to win?
(1) ‎Post your one minute video on Instagram before 12 noon on Sunday the 18th of August 2019.⠀
(2) Use the hashtag #ZBZeroBalanceChallenge and tag + follow @zenithbankplc on Instagram.⠀
Click Here to view and download the Zero Balance song.⠀
Note!  ‎
  • Winners will be announced on Tuesday the 20th of August 2019.
  • The participant must have zenith zero account
  • To Open zero account, kindly dial #966*0# and follow the prompts

Prizes🎁

1st prize: N200,000 
2nd prize: N100,000 
3rd prize: N50,000 ‎
The promos run from Sunday the 18th of August 2019.
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