Fidelity

Mrs Nneka Onyeali-Ikpe, Managing Director of Fidelity Bank has reported that the bank has posted a profit before tax (PBT) of N20.6 billion for the six months ended June 30.
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 per cent 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 per cent Year-on-Year (YoY) to N112.3 billion on account of 27.8 per cent 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 per cent, account maintenance charges by 50.6 per cent, digital banking income by 49.4 per cent and trade income by 33.7 per cent among others, as total customer induced transactions across all distribution channels increased by 58.0 per cent YoY and 21.2 Per cent QoQ.
The Bank showed a good appetite in funding the real sector with net loans and advances increasing by 15.8 per cent YTD to N1.53 billion from N1.32 billion in 2020FY.
However, the actual growth was 14.7 per cent while the impact of the currency adjustment (2020FY: N400.3/dollars-H1 2021: N410.6/dollars) accounted for a 1.1 per cent YTD growth in the loan book. Cost of risk came in at 0.3 per cent and the NPL ratio (stage 3 loans) dropped to 2.8 per cent from 3.8 per cent in 2020FY.
Other regulatory ratios remain well above the minimum requirement: capital adequacy ratio at 18.8 per cent from 18.2 per cent in 2020FY.
Total Deposits increased by 16.5 per cent YTD to N1.98 billion from N1.69 billion in 2020FY, driven by increased deposit mobilisation across all deposit types.
The Bank boss said: “Digital Banking gained further traction as we now have 55.1 per cent of our customers enrolled on the mobile/internet banking products and 89.3 per cent of customer-induced transactions were done on digital platforms.
She also explained that the Bank’s foreign currency deposits increased by 23.1 per cent YTD at 149 million dollars and now accounted for 18.5 per cent of total deposits from 17.5 per cent in 2020FY, 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 optimising our balance sheet and lowering our cost–to–serve which will translate to improved earnings while we remain committed to our medium to long-term strategic objectives,” said Onyeali-Ikpe.

Fidelity Bank has splashed N39 million on 15 customers in the final draw of its Get Alert In Millions (GAIM) Season 4 savings promo.
The cash prizes were in the categories of N10 million grand prize, N3 million, N2 million and N1 million, respectively.
Mr Sunday Okeke of Matori branch Lagos and Mr Justine Nwaozor of Suleja branch, Niger State, were the star prize winners of N10 million naira each.
The winners emerged through a transparent process witnessed by representatives of the National Lottery Commission and Federal Competition and Consumer Protection Commission.
Speaking at the final draw, the bank’s Managing Director, Mrs Nneka Onyeali-Ikpe, said the campaign was the ninth in the series of savings promos embarked upon by the bank in last 14 years.
Onyeali-Ikpe said the season 4, which commenced in October 2019, had so far conducted five draws but was suspended due to the outbreak of the COVID-19 pandemic.
She noted that the promo was suspended in March 2020 upon obtaining the necessary regulatory approval due to COVID-19.
“Based on the monthly and bi-monthly draws conducted, 81 winners had emerged; with a total of N63 million and several consolation prizes won,” she added.
Onyeali-Ikpe, who was represented by the bank’s Executive Director, Lagos &South West, Dr Ken Opara, said the bank had also given out airtime worth about N6 million to 7,000 customers in the promo.
“At this final draw, we shall give out total cash wins of N39 million to 15 customers and 18 consolation prizes of television sets, fridges, and generators.
“Upon conclusion of this draw, we would have given out N120 million in cash and 108 consolation prizes of television sets, fridges, and generators (worth N7.8 million) to 204 winners,” she said.
Onyeali-Ikpe noted that the promo was instituted to boost financial inclusion and to reward its teeming customers for their loyalty and patronage.
“The phrase ‘It pays to save with Fidelity Bank’ has become deeply entrenched in the minds of the people and this savings campaign will in no small measure aid the growth of that consciousness.
“This promo encourages customers and members of the public to imbibe a savings culture, thus deepening financial inclusion, in line with the mandates of the Central Bank of Nigeria,” she added.
She said the promo had impacted positively on the bank’s bottom line.
“The impact has been very phenomenal in major growth, a lot of people who didn’t have the opportunity to save now have.
“The major thing is that it has increased the savings culture and that has also translated to the bottomline in terms of the volume of savings the bank has achieved both in the number of people and the volume of savings.
“It has been a huge success; benefit to the customer, benefit to the bank and benefit to the country,” Onyeali-Ikpe said.
According to her, the bank is perfecting arrangements for the next promo and the customers should be expectant.
“So, in no distance time, you are going to see another promo with additional incentives.
“The customers should keep the hope alive, keep saving, before you know it the next promo is with us with bumper benefits attached to it. It will get better than what you have seen today,” she said.
She said the bank would inculcate financial literacy in the next promo.
“We will teach people how to invest and invest well. The package is also going to involve teaching them how to invest what they have won to have a sustainable lifestyle at the end,” she said.

The first female Chief Executive Officer of Fidelity Bank, Mrs Nneka Onyeali-Ikpe, has unveiled a seven-point agenda aimed at becoming a tier-1 bank in the country.
She said the agenda would move the bank further in its quest to become a Tier-1 bank, well-positioned to outlive competition.
Onyeali-Ikpe said the agenda focused on brand architecture, brand building and refresh, talent development and transformation, product and service delivery, agility and performance discipline, digital transformation, and regulatory compliance.
She said the bank intended to embark on an innovation drive through the implementation of new processes and techniques.
“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,” she said.
According to her, the company will embark on brand refresh with the aim to increase top-of-mind awareness of the Fidelity brand by external and internal stakeholders.
Onyeali-Ikpe added that the company would ensure workforce transformation to create a future readily supported by a high performing and empowered workforce.
“This will be achieved by deepening the skills and competencies of staff across the bank, entrenching a culture of high performance, and embedding new ways of working in the bank.
“So far, the commencement of capacity building training for staff and senior management training are some of the initiatives implemented.’’
Onyeali-Ikpe said that other initiatives to deepen growth include accelerated play in the SME segment, renewal of institutional banking, and drive for transaction-based propositions in corporate banking.

By Tanko Mohammed

Fidelity Bank Plc on Friday launched its ‘Pay Yourself’ product for customers whose salaries are domiciled in the bank for convenience to enable them to be in control of their finances.

Mr Christopher Onyeneke, the bank’s Chief Technology Officer, said at the virtual launch of the product on Friday in Lagos that ‘Pay Yourself’ would enable customers to have control of their salaries from day one.

Onyeneke said that Fidelity Bank had used the product for its staff members for about 11 months and decided to extend it to customers due to positive feedback.

“With Pay Yourself, you are able to decide when you receive your salary via USSD between the ‘official’ payday and the last day of the month.

“We understand that salary payment brings about anticipation and the thought of being in control of when your salary is paid, so that brings us to how we got here.

“Fidelity Bank had been going through digital transformation programmes and part of it was making sure that our staff members were satisfied.

“That is how the birth of ensuring our staff members are put in control of their salary payments came about,” Onyeneke said.

According to him, the product affords convenience because it is fully automated, thereby eliminating manual processes in salary payments.

“Anybody could complete the process using a USSD code via their mobile phones.

“It also gives time for people to focus to do more strategic things because it removes the manual part from the Human Resources team,” he added.

Onyeneke said that the bank would continue to make financial services easier and accessible to its customers.

Also speaking, Mr Oluwole Oni, the bank Programme Manager, Digital Transformation, disclosed that there were four steps to register under the product.

Oni said that the first step involved the customer sending a short code: “*770*50*400058#, which takes you to step two where you select your salary account, then step three to confirm your salary payment and step four which requires your USSD pin.

“After this process, your salary is paid instantly.

“Fidelity Bank is based on customer experience and so the product is ready for customers by taking these four easy steps,” he said.

By Anthony Areh

Dr Oluleye Adigun, a US-based Nigerian billionaire, has revealed ongoing effort to invest three billion naira ($6.8million) in Fidelity Bank through shares acquisition.

Adigun said that the acquisition was part of his planned investment in the Nigerian economy, adding that the process of buying Fidelity bank was almost done, attributing the little delay to the COVID-19 pandemic.

“The Fidelity bank purchase is almost done. COVID-19 delayed the process a little due to everything closing down, but the process just picked up again.  I was told I have to open a bank account and will need BVN. I am planning to come to Nigeria to do that as soon as possible.

The Osun State-born billionaire is the owner and Chief Operating Officer of Golden Glades Treatment Center, as well as Adigun Investment Group, with stakes in nine companies operating  in commercial real estate, several e-commerce companies. as well as wind and solar energy.

Others are aviation, with four private planes, a technology company, which owns computer software/applications, and six clinics in the healthcare industry.

“Mr. Peter Aletor, Managing Director for Apel Asset Limited, and a friend, Mr Tosin Afolabi, have been very helpful on it. Afolabi will be partner in my bank venture in Nigeria with small share,” he said of his foray into the Nigerian economy.

Adigun expressed willingness to bring his airline company, healthcare, technology as well as solar and wind energy to Nigeria in the future.

“I am interested in investing in Nigeria because it’s my father land. I believe there has to be a way of doing something in my own country and be successful in it.

“I have touched almost every industry here in the US and very successful in it. I have done business with people in other countries like South African, Zimbabwe, Jamaica and Europe. I want to do same in my own country,” he said.

He added: “The Nigerian economy has great potentials. Nigeria has everything to be giant in the world. We have the smartest people in Nigeria.

“With the right people, with great mind and good intentions, Nigeria can be like US and other thriving countries. I need to build my own too. Nigeria is my home regardless of what I have here in US.”

He narrated how his previous efforts to purchase failing Polaris Bank in Nigeria was thwarted, on the grounds that he was not known in Nigeria and being an investor from Southern Nigeria.

Adigun described the experience as very horrible, saying that the task of building a greater Nigeria was a collective responsibility, which must be devoid of ethnic sentiment.

“When I decided to start investing in the Nigerian economy, I first heard of Polaris Bank. So I decided to buy a failing bank and Polaris came up through my connections with CBN.

“I was connected to Mr. Peter Aletor who is coordinating with AMCO in buying 80 percent shares of Polaris bank and save it from closing.  I was later informed by Mr. Peter that Polaris board members met and decided that they are not selling control of the bank to a Southerner,” he said.

He said it was Aletor who later told him to buy small shares from other reputable banks like Guaranty Trust Bank or Fidelity Bank, and this prompted his decision to buy enough shares from Fidelity bank to become a board member.

“We are going through that process now and should be completely done in a few weeks. This is a billion naira project and hope it goes well. I have built myself from making less than 30,000 dollars yearly to having a net worth of over 100 million dollars within the last four years.

“We are all Nigerians and looking to better our country together. We can’t fix Nigeria if we are all divided. As Nigerians, we need to change our mindset to fix and make Nigeria better together,” he said.

He said he was also in the process of applying for a banking license with CBN to dive into fintech

Adigun was an old student of Olivet Baptist High School in Oyo, Miami Dade college, Florida Atlantic University and Walden University.

He has served in several U.S organisations as a Police Officer, Substance Abuse Counselor and Clinical Director before he opened his first business in 2017.

Fidelity Bank has hit N105.8 billion gross earnings in its audited results for the half-year ended June 30, in spite the economic challenges occasioned by the COVID-19 pandemic.

The bank in a statement in Abuja on Monday, said it had sustained the financial performance trajectory of recent years with another set of impressive financial results.

“Details of the Audited Half Year results ending June 30, 2020 for the top Nigerian lender, released on the Nigerian Stock Exchange (NSE) on Sept. 3, show strong growth in profits and other indices.

“The bank recorded a surge in Profit Before Tax of N12.0 billion from N9.8 billion in 2019, which translated to a 22 per cent growth.

“Net profits for Fidelity Bank grew by 33 per cent from N8.5 billion to N11.3 billion in the reporting period.

“In other indices total assets rose by 13.7 per cent from N2.1trillion in 2019 to N2.4 trillion this year whilst total deposits rose by 14.8 per cent from N1.2 trillion to N1.4 trillion during the same period.’’

The statement quoted Chief Executive Officer of Fidelity Bank, Nnamdi Okonkwo as commenting on the results.

Okonkwo said the performance for the period reflected the resilience of the bank’s business model.

“Due to the global and domestic headwinds witnessed in H1 2020, we proactively increased our cost of risk as the impact of the pandemic slowed down economic activities, whilst adapting our business model to the new risks and opportunities of the new normal,” he said.

Okonkwo said Fidelity Bank re-stated its H1 2019 figures from N15.1billion to N9.8 billion to reflect the impact of IFRIC 21- Levies, which was adopted for the first time on the H1 2020 financials.

“The key impact of IFRIC 21 was that our 2020FY AMCON Cost was recognised 100 per cent in our H1 2020 accounts rather than been amortised over 12 months as was done previously on our financials,” bank CEO said.

He said that without implementing IFRIC 21, profit for the period would have been N17.9 billion compared to the N15.1billion reported in H1 2019.

“Fidelity Bank has been implementing a digital-led retail strategy and digital banking gained further traction during the period with 87.3 per cent of the bank’s customers now transacting on digital platforms.

“The figures are up from 82.0 per cent in 2019FY, while 51.2 per cent of the bank’s customers are now enrolled on the bank’s mobile/internet banking products.

“Though digital banking income dropped by 29.1 per cent due to the downward fee revisions for electronic transactions in line with the new bankers’ tariff, we have continued to receive positive reviews on our digital channels.

“IVY, the bank’s chat box is rated as the clear leader, among virtual assistants in the industry just as our flagship instant banking product (*770#) was also rated in the top tier category in the recently released 2020 KPMG Digital Channels Scorecard.

“Retail banking in Fidelity Bank has continued to also deliver impressive results.

“Savings Deposits in H1 2020 increased by 32.2 per cent to N363.9 billion with the bank on course to achieving the 7th consecutive year of double-digit growth in savings.

“Savings Deposits accounted for 49.1 per cent of the total growth in customer deposits and now represents 25.9 per cent of total deposits compared to 22.5 per cent in 2019FY.

“In reflection of the bank’s early conservative assessment of the sectors that were affected by the COVID-19 pandemic, the bank’s Non-Performing Loans (NPL) ratio increased to 4.8 per cent from 3.3 per cent in 2019FY.

“Regulatory Ratios however remained above the required thresholds with Capital Adequacy Ratio increasing to 18.8 per cent from 18.3 per cent due to the capitalisation of H1 2020 Audited Profits while Liquidity Ratio stood at 32.1 per cent.

“Buoyed by the H1 performance, the bank is optimistic about the remaining part of the year.

“We believe the new phase of normalcy will unveil some growth opportunities.

“We will continue to monitor and pro-actively manage any evolving risks as the Nigerian economy gradually reopens and economic activities pick-up in key sectors” Okonkwo stated.