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Fidelity Bank grows Profits by 34.7% to N37.8bn in 9M 2022

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In line with its upward growth trajectory, leading financial institution, Fidelity Bank Plc, has posted an impressive 34.7% growth in profits from N28.1bn at the end of Q3 2021 to N37.8bn for the 9M 2022.

This was made known in the Bank’s unaudited financial statements released on the issuer portal of the Nigerian Exchange (NGX) on Friday, 28 October 2022.

According to the statement, Net Interest Margin improved to 6.2% from 4.7% in 2021FY, due to increased market yields while average funding cost remained unchanged YTD. Average yield on earning assets increased by 166bps to 11.7% while average funding cost stood at 4.3%, which resulted in 72.2% YoY increase in net interest income to N111.9bn.

Commenting on the results, Nneka Onyeali-Ikpe, MD/CEO, Fidelity Bank Plc stated: We are happy to report sustained growth across key financial indices in our 9 months 2022 results. Gross Earnings increased by 38.7% YoY to N241.9bn on account of 53.1% growth in interest and similar income to N210.4bn from N137.4bn in 9M 2021.

The increase in Interest Income was driven by improved yield on earnings assets and 16.3% YTD expansion in earnings base to N2,579.0bn.

Similarly, Total Deposits increased by 13.3% YTD to N2,294.7bn from N2,024.8bn in 2021FY, driven by double-digit growth in low-cost deposits. Low-cost deposits increased by 24.2% YTD to N1,873.6bn and now represents 81.7% of total deposits from 74.5% in 2021FY.

FCY deposits increased by $432m (45.9% YTD) to $1.4bn and now accounts for 26.2% of total deposits from 19.7% in 2021FY, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space.

The statement of account also showed considerable growth in Net Loans and Advances by 20.0% YTD to N1,989.3bn from N1,658.4bn in 2021FY with intervention fund facilities and the impact of naira devaluation accounting for 33.8% of the absolute YTD growth in risk assets book.

The Bank was able to keep Other Regulatory Ratios above the required thresholds maintaining its liquidity ratio at 41.3% and capital adequacy ratio (CAR) at 19.4% compared to the minimum requirement of 15.0%.

“We successfully redeemed our $400mn Reg S /144a Senior Unsecured 5 -yr Notes on 17th October 2022.

Noteholders received a total of $421mn covering the principal amount and the accrued 6 months coupon in line with the executed Trust Deeds.

We look forward to sustaining the momentum in Q4 towards achieving our set targets for 2022 Financial Year”, explained Onyeali-Ikpe.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 7.2 million customers serviced across its 250 business offices and digital banking channels.

The bank was recently recognized as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards and received the Platinum and Service Ambassadors awards from the Development Bank of Nigeria (DBN) for its support of small businesses in the country. The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

Business

Dana Air initiates refunds following suspension by NCAA for safety audit

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Dana Air has announced that it is processing refunds for flights affected by its recent temporary suspension.

The Nigeria Civil Aviation Authority (NCAA) imposed the suspension to conduct a safety and financial audit following a runway incursion incident involving one of the airline’s aircraft on Tuesday.

The airline disclosed this information in a statement on its official X (formerly Twitter) account on Wednesday, apologizing for the inconvenience and disappointment the suspension may have caused its passengers regarding their travel plans.

According to Dana Air’s statement, passengers who have already booked flights are instructed to send their flight booking details (PNR) and bank account numbers to contact@flydanaair.com for refunds.

  • “In light of the suspension, we understand that you may have concerns regarding your bookings and travel plans. We assure you that we are processing refunds for affected flights over the next month.
  • “To expedite this process, we kindly request that passengers send their booking details (PNR) and bank account numbers to contact@flydanaair.com,” the statement read in part.

The statement also assured Dana Air customers that the airline is fully cooperating with aviation authorities to address any concerns and ensure that the matter concerning the suspension of its operating license is swiftly resolved.

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Naira falls to N1,300/$ at parallel market

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The naira, on Wednesday, depreciated to N1,300 per dollar at the parallel section of the foreign exchange (FX) market.

The current FX rate signifies a 3.17 percent drop from the N1,260 traded on April 22.

Currency traders, known as bureau de change (BDC) operators, quoted the buying rate at N1,260 and the selling price at N1,300 — leaving a profit margin of N40.

At the official window, the naira fell to N1,308.52 against the dollar — a 0.64 percent decline from the N1,300.15 traded on April 23.

According to the FMDQ Exchange, a platform that oversees official FX trading in Nigeria, the naira recorded a high of N1,367 and a low of N1,098.

With the current record, the official window rate still surpasses that of the parallel market by N8.52.

The Central Bank of Nigeria (CBN), on April 23, reduced the FX rate for dollar allocations to BDC operators.

The financial regulator, in a circular signed by Hassan Mahmud, director of trade and exchange department, said it sold $10,000 at the rate of N1,021/$ to each BDC.

On April 8, CBN also sold FX to the BDCs at the rate of N1,101/$, compared to the N1,251 the apex bank offered to the parallel market operators on March 25 and the N1,301 announced on February 27.

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Economic hardship: Soludo’s wife advises Anambra women to embrace backyard gardening

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Nonye Soludo, the first lady of Anambra, says women in the state should embrace backyard garden practice to help their families cope with the rising cost of living.

Nonye, the founder of Healthy Living Initiative, spoke when she received a group of Anambra female farmers and businesswomen in Awka, the state capital.

She said home garden practices have helped families as primary and regular sources of diet and nutrition

The Anambra first lady said backyard gardens would also reduce dependence on commercial food products which are mostly expensive.

“Economic circumstances do not completely determine healthy living practices, including the choice of what we consume to keep the body in good shape,” she said.

“We also need to dispel the notion that eating healthy is about eating expensive food products.

“You only need to go to the small farm behind your house to pick up what the body needs to be healthy.

“This is why I am encouraging families to embrace backyard or home gardens and this is in line with the state government’s agricultural agenda.

“Those who live in areas without enough land for subsistence farming purposes can adopt sack farming, which does not cost anything to set up.

“By having such farms around the house, households can have easier and healthier alternatives, cut down their costs of living and boost the green environment.’’

Nonye said her healthy living campaign aims to sensitise households on adopting healthy living as a culture.

“One of our goals is to ensure that families in Anambra prioritise nutritional values of what they eat to improve their family health,” she added.

On her part, Esther Onyekesi, the leader of the group, said women have a major role to play in food production and should be given every necessary support.

Onyekesi, who is also the women’s leader of the All Progressives Grand Alliance (APGA) in the state, encouraged her colleagues to key into backyard farming to enhance food security.

She added that the recent hike in prices of foodstuffs should encourage everyone to go into farming.

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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others

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