Fitch Upgrades Fidelity Bank’s issuer default rating from ‘B-’ to ‘B’
Fitch Ratings has upgraded Fidelity Bank Plc’s long-term issuer default rating (IDR) from ‘B-’ to ‘B’, reflecting the bank’s increased creditworthiness. The rating agency also upgraded Fidelity’s National Long-Term Rating to ‘A(nga)’ from ‘BBB+(nga)’.
According to the global rating agency, the upgrade is a result of the Bank’s improving business profile and resilient financial metrics. The agency added that the improved rating reflected the bank’s increased creditworthiness relative to other issuers in Nigeria, emphasizing that, “Fidelity’s Long- and Short-Term IDRs are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR) of ‘b’ ’’.
The agency further stated that the VR reflects healthy asset quality, good business profile and reasonable capitalisation and liquidity. These are balanced against high sensitivity to Nigeria’s challenging operating environment as well as higher credit concentration as a percentage of equity and weaker profitability than larger domestic-rated peers.
Commenting on the upgraded rating, Nneka Onyeali-Ikpe, Managing Director/CEO, Fidelity Bank Plc, stated, “Receiving this upgrade at a time when the global economy is faced with a myriad of challenges, speaks to the strength of our business model, the efficacy of our risk management culture and the commitment of our staff towards creating sustainable value for all stakeholders. As a bank, we will continue to execute our growth strategy in a prudent manner that allows us to take advantage of emerging opportunities in our various markets”.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 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. 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.
Fidelity Partners ImpactHER to Empower 1,052 Female Entrepreneurs with Sales Skills
Fidelity Bank, a leading financial institution in Nigeria, has collaborated with ImpactHER to support 1,052 female entrepreneurs across the 36 states of Nigeria in addressing the challenges they face in their small and medium-sized businesses. Through diverse training on digital skills and direct business support, beneficiaries from two cohorts have been able to improve visibility for their businesses and consequently, increase sales.
The training, which commenced in January 2022, has had two cohorts that lasted for four weeks each, covering a myriad of topics such as Digital marketing, building your brand and selling online, etc. The participants were also assisted in putting their businesses on Google Maps, thus allowing customers and the global market to easily find and transact business with them.
Commenting on the partnership, Osita Ede, Divisional Head, Product Development at Fidelity Bank Plc said, “It has become imperative that female entrepreneurs in Africa are empowered to overcome the lack of digital literacy which impedes them from fully reaping the benefits of the digital transformation underway across Africa, and the world. We believe providing them this access will help them to thrive in their different businesses.”
According to Efe Ukala, Founder of ImpactHER, “Statistically, women and girls are 25 per cent less likely to leverage digital technology for basic purposes, 4 times less likely to know how to programme computers and 13 times less likely to file for technology patents. This therefore highlights the importance of equipping African women with digital skills that could be leveraged to scale their businesses. Let’s not forget that data shows that Africa can add 180 billion Dollars to its GDP by 2025 if we close the e-commerce digital gap.”
This intervention is critical as the Global Entrepreneurship Monitor for 2019/2020 highlighted that millions of women worldwide have started businesses over the last five years alone: the highest percentage of these women live in Africa, with approximately 26% of female adults engaged in entrepreneurial activity yet the World Bank confirms through data collected in ten African countries that on average, male-owned companies have six times more capital than female owned enterprises, resulting in monthly profits of female-owned enterprises that are, on average, 38% lower than male-owned businesses.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 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. 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.
The bank boasts of a robust bouquet of products designed to help female-led small businesses run successfully including digital loans and HerFidelity -a proposition comprising exciting features such as capacity development initiatives, access to finance, recognition and networking events, health and wellness programmes, etc, all designed to speak to the yearnings of women.
Clementina Uzogor, the Programs Director at ImpactHER, highlighted the importance of helping women with skills like this to take their businesses to the next level. “At ImpactHER, it is our mission to ensure that we equip these women with tools for their businesses to thrive”, she explained.
She also appreciated Fidelity Bank for working with them to ensure the programme was successful and impactful. “It is important to let you know that this is not the end of this training. We will be deepening our partnership with Fidelity to train and support 5,000 more women-led small and medium sized businesses in the country before the year runs out”, she divulged.
An excited participant from the second cohort, Ms Akinyemi Oluronke, a fashion designer from Lagos underscored the benefits of joining the training for her business, “I’ve been able to build an online presence, people now know my business exists and I get a lot of calls from people who found my business online. I am very grateful for this platform and the overall increase in sales I now enjoy.”
According to Carine Nneka Achokwu, another participant from the January 2022 cohort and CEO of Carine Bakery, a company that produces pastries and cakes in Lagos, Nigeria, “I have been able to increase sales by 40% after using the tools that was provided to me such as “Google My Business” and people have been calling to order from me and I’ve also been able to reach more customers. I am thankful that I can get people to patronize my business just by tapping my phone based on the knowledge I acquired at this training.”
ImpactHER is an impact-driven nonprofit organization that empowers African female entrepreneurs by bridging the gender business financing gap so as to assist them in realizing their full economic potential. ImpactHER has since its inception trained, directly supported with investor-readiness and business scalability skills & tools to over 44, 275 women across 53 countries in Africa.
This partnership also provides follow-up training and support for the participants and is one of the ways ImpactHER and Fidelity Bank help these women scale up their offerings.
Fidelity Bank Renovates Classroom Blocks, Commissions ATM Gallery In Zaria to Drive Financial Inclusion
L – R: Emir of Zazzau, His Royal Highness, Alhaji Ahmed Nuhu Bamalli; Executive Director, North Directorate, Fidelity Bank Plc, Hassan Imam; and Divisional Head, Brand and Communications, Fidelity Bank Plc, Meksley Nwagboh at the commissioning of classroom blocks renovated by the bank at Madrasatul Anwarul Islam, Kwarbai, Zaria, Kaduna State on Saturday, 18 June 2022. The bank also inaugurated a state-of-the-art Automatic Teller Machine (ATM) gallery at the Emir’s palace at the event.
Leading financial institution, Fidelity Bank Plc, recently commissioned the newly renovated Madrasatul Anwarul Islam school in Zaria, Kaduna State as part of its Corporate Social Responsibility (CSR) initiatives targeted across Nigeria.
Established over five decades ago by the emir’s father, late Maga in garin Zazzau, Alhaji Nuhu Bamalli, Madrasatul Anwarul Islam is the alma mater of the current Emir of Zazzau and has produced several notable personalities in the country.
The bank also inaugurated a state-of-the-art Automatic Teller Machine (ATM) gallery to drive financial inclusion within the community.
Speaking at the official project commissioning event which held on Saturday, 18 June 2022, Executive Director, North Directorate, Fidelity Bank Plc, Hassan Imam, said the bank’s decision to renovate the school was borne out of its commitment to make learning conducive for both students and teachers across the country.
According to Imam, “Our CSR footprint extends beyond education, healthcare and youth empowerment initiatives across the country as we are driven by the belief that we can only succeed as an organization when the people and community where we do business succeed. That is why we have taken it upon ourselves to help upgrade the facilities here at Madrasatul Anwarul Islam. Our hope is that the teachers and students in the school would put the facility to good use.”
“As part of our commitment to drive financial inclusion across the country and boost commerce in Zaria in particular, we have installed an ATM gallery at the emir’s palace. We hope this would make financial services easier and accessible to members of the Zaria community in line with our mission as a bank and thank the emir, His Royal Highness, Alhaji Ahmed Nuhu Bamalli, for his support in executing this project as well,” explained Imam.
Applauding the bank for its gesture towards promoting education and commerce in Zaria, HRM Ambassador Alhaji Ahmed Nuhu Bamalli encouraged members of the community to put the facilities to good use and protect them against vandalism. He also urged businesses and merchants to patronize the bank as a way of appreciating their efforts in developing the community.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.7 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. 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.
Fidelity Bank partners Edo State and GIZ to host CBN RT200 FX Exports Roundtable and Sensitisation Workshop
Leading financial institution, Fidelity Bank Plc, has announced plans to host an exports roundtable and policy sensitisation workshop for businesses in Benin-City, Edo State capital in partnership with the Edo State Investment Promotion Office (ESIPO) and GIZ on Tuesday, 24 May 2022.
The event, which would be the fourth edition of the bank’s CBN RT200 FX Sensitization seminars following successful outings in Kano, Ondo and Plateau States in February, March and April 2022 respectively, is part of the bank’s initiatives to help importers pivot to exports.
According to the Divisional Head, Export and Agriculture, Fidelity Bank Plc, Isaiah Ndukwe, Fidelity Bank’s decision to partner ESIPO and GIZ is borne out of the need to help exporters to build their business management capacity and is further proof of the value the bank provides to export-oriented businesses in Nigeria.
“At Fidelity Bank we are known for empowering our customers with the necessary financial and non-financial services to upscale their businesses. We consider the CBN RT200 FX scheme an amazing opportunity for businesses to bolster their FX earning capacity and we are delighted to collaborate with ESIPO and GIZ to host businesses in and around Benin City to a workshop to help them take advantage of the scheme”, explained Ndukwe.
Launched on February 10, 2022, by the Central Bank of Nigeria (CBN) as part of measures to reduce the increasing demand for foreign currency by importers, the RT200 FX scheme is designed to help Nigeria achieve $200 billion in FX repatriation from non-oil exports over the next five years. The policy has been hailed by stakeholders in the export sector as an initiative capable of stimulating the growth of non-oil exports in Nigeria.
“The goal of the roundtable is to identify and promote viable non-oil export opportunities, provide financing options, and proffer steps to removing the identified bottlenecks in the export process for non-oil products from Edo State to the global market. It will provide a platform for the exporters to meet with the export regulatory bodies and express their challenges which hinder exports. The event will also serve as an opportunity for the regulatory agencies to address the challenges on the spot and provide solutions to them with a view of enhancing Nigeria’s capacity in the African Continental Free Trade Area deal”, commented Marcus Unuebho of the Business Development Support and Export Unit, ESIPO.
On his part, the Technical Advisor for Edo State, Local Economic and Value Chain Development, GIZ SEDIN, Nosakhare Omon Aigiomawu stated that, “Micro, Small and Medium Enterprises are the drivers of local economic development. Collaborating to provide market linkages and access to finance would address major constraints to these groups and ensure more employment creation as well as higher income”.
Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 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. 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.
Managing Director/CEO, Fidelity Bank PLC. Mrs. Nneka Onyeali-Ikpe was in Abuja on Thursday June 17, 2021 when Air Peace Airline took delivery of the first of 13 brand new E195-E2 directly from Embraer facility in São José dos Campos, Brazil. The new aircraft with registration number 5N-BYF, named Helen Ekwusi Onyema, touched down at the Nnamdi Azikiwe International Airport, Abuja at about 2.00 pm and was greeted with a water salute by men of the Fire service department of the Federal Airports Authority of Nigeria, FAAN.
In a bid to foster positive business relationships, Fidelity Bank makes concerted efforts aimed at collaborating with the private and public sectors. The Bank had in the past paid courtesy visits to industrialists and top government officials such as the Governors of Ogun State, Lagos State, Oyo State, Imo State and Osun State, as well as the Founder of BUA Group, Abdulsamad Rabiu.
Just recently, EXCO members of the Bank led by Managing Director/CEO, Mrs. Nneka Onyeali-Ikpe paid a courtesy visit to the Office of the Senate President of the Federal Republic of Nigeria, His Excellency, Distinguished Senator (Dr.) Ahmad Ibrahim Lawan. The purpose of the visit was to strengthen the existing relationship and support government’s economic initiatives.
L –R. Senator representing Katsina South Senatorial District, Senator Bello Mandiya; Executive Director, North, Fidelity Bank Plc, Alhaji Hassan Imam; President of the Senate, Dr. Ahmad Ibrahim Lawan, CON.; Managing Director/CEO, Fidelity Bank Plc, Mrs. Nneka Onyeali- Ikpe; and Senator representing Jigawa North West Senatorial District, Senator Abdullahi Gumel when EXCO members of Fidelity Bank led by Mrs. Nneka Onyeali –Ikpe paid a courtesy visit to the Office of the Senate President of the Federal Republic of Nigeria, His Excellency, Distinguished Senator (Dr.) Ahmad Ibrahim Lawan…recently
Fidelity Bank remains committed to putting smiles on its customers’ faces by enriching their lives through its ongoing savings loyalty program. To mark this year’s Children’s Day, the bank doled out N150, 000 to 62 Sweet Account (SWEETA) holders across the country, a whopping total of N9.3 million. As part of its efforts to deepen customer engagement, the bank readjusted its approach with respect to the loyalty scheme.
Under the auspices of the loyalty scheme, the bank presented cheques to the beneficiaries of the loyalty scheme at various children’s events organised by Bounty Kiddies Bites & Event, Katsina; Zeelove Event Management; Pamvilla Primary & Secondary School; Refiner School; Ilupeju Junior & Senior Secondary School; Orphanage Home, IDP camp throughout Katsina, Niger, Abuja, Lagos, and so on.
Commenting on this initiative, Fidelity Bank CEO, Mrs. Nneka Onyeali-Ikpe pointed out that all round quality education remains a strong anchor in raising tomorrow’s children and breeding exceptional children who can compete globally. “This is why we have decided to contribute our quota as a bank by offering school fees support to select Nigerian children.
Mrs. Onyeali-Ikpe urged well-meaning Nigerians and corporate entities operating in the country to continue to support positive causes that would ensure a secure future for children. In the same vein, Richard Madiebo, Head of Product Development, encouraged prospective and existing customers to open SWEETA accounts for their children and wards to participate in this initiative.
It is worthy to note that the bank has given out N4.1bn to 10,280 customers (7,367 FPSS & 2,913 SWEETA) from the inception of the loyalty scheme to date. In keeping to its promise of rewarding N500,000 “extra income” and N150,000 “School Fees Support” to all active FPSS and SWEETA holders every quarter, the bank conducted random electronic selection of the loyalty beneficiaries across Regional banks/branches for quarter ended March 31, 2021.
During the week, the bank conducted a virtual cluster loyalty selection for Fr. Hillary Group of St. Peters Catholic Church, Awka, and Mrs. Ngozi Cynthia was the recipient of N500, 000 in “extra income.”
The shareholders of Fidelity Bank Plc have unanimously endorsed the payment of a cash dividend of 22 kobo per share to all Shareholders whose names appear in the Register of Members at the close of business on April 16, 2021. This translates to a dividend yield of 9.2%, making it the 4th most rewarding Bank to investors in the Nigerian Capital Market. This announcement was made at the 33rd Annual General Meeting (AGM) held in Lagos on April 30, 2021.
Shareholders who spoke at the event praised the Board of Directors and the management team for the 38.7 percent increase in total customer deposits, which rose from N1,225.2 billion in 2019FY to N1.699.0billion and was driven by strong double-digit growth in both local and foreign currency deposits.
Mustapha Chike-Obi, Chairman of the Board of Directors of Fidelity Bank, reassured shareholders at the AGM that the board and management of the bank would maintain the high corporate governance standard synonymous with Fidelity Bank and also ensure the bank continued in its growth trajectory in the years ahead.
“We will continue to strengthen our enterprise risk management capabilities to ensure the sustainability of our business, while modeling our governance practices to align with international best practice”, said Chike-Obi.
Mrs. Nneka Onyeali-Ikpe, Fidelity Bank CEO echoed the Chairman’s sentiments, stating that the bank’s financial performance for the period reflected the resilience of its business model in a challenging operating environment.
Mrs. Ikpe revealed that local currency deposits grew by 49.6 percent to N1,400.8 billion and constitutes 82.5 percent of total customer deposits while foreign currency deposits grew by 3.3 percent to N298.2 billion and now accounts for 17.5 percent of total deposits.
She further highlighted that the bank’s retail banking push continued to deliver impressive results as total savings deposits increased by 54.2 percent to N424.4 billion, making it the 8th consecutive year of recording double-digit growth in savings deposits. Total savings deposits now account for about 25.0 percent of total deposits, an attestation of the Bank’s increasing market share in the retail market segment.
Speaking on the strategy for the current financial year, Mrs. Onyeali-Ikpe, said, “We will continue to focus on redesigning our systems and processes to enhance service delivery, deepen our cost optimization initiatives to reduce operating expenses, and enhance our overall risk monitoring capabilities to ensure both internal and external risks are identified and mitigated. Our growth aspirations will be sustained while we continue to identify new opportunities in the new normal.
“On the back of the evolving dynamics in the economy, we will continue to increase the adoption and migration of customers to our digital platforms and increase our retail banking market share through innovative products and services”, she concluded.
The shareholders expressed their continued confidence in the Bank for its 2020 performance which saw a 50.9 percent increase in core operating profit to N44.9 billion. The share price also rallied 22.9 per cent, outperforming the Nigerian Stock Exchange (NSE) Index, which only gained 10.1 percent. According to Mrs. Onyeali-Ikpe, the Bank showed “strong resilience to the adversities the global economy witnessed in 2020”.
Speaking at the meeting, Dr Farouk Umar, President, Association for the Advancement of the Rights of Nigeria Shareholders, commended the bank for posting encouraging performance in 2020 despite the challenges of the COVID-19 pandemic.
Umar appreciated the bank for paying dividend the same day of the Annual General Meeting unlike their peers in the industry that pay dividends a day after the AGM. Also speaking, Mrs Bisi Bakare, National Coordinator, Pragmatic Shareholders Association of Nigeria, commended the bank for declaring dividend in spite of unfriendly economic environment and the COVID-19 pandemic challenges. Bakare who welcomed Mrs. Onyeali-Ikpe and Mr. Chike- Obi, urged them to sustain the growth and ensure higher dividend in the years ahead.
In compliance with the guidelines of the Corporate Affairs Commission’s (CAC), the meeting was held by proxy and had in attendance very few shareholders because of the COVID-19 precautionary measures.
Onyeali-Ikpe thanked the shareholders and the members of the Board for their continued confidence in the management team and specially appreciated Fidelity Bank customers for their patronage and loyalty.
Fidelity Bank began the year on a positive note having recorded a strong financial performance in the first quarter of 2021, posting appreciable growth in profit for the period ended March 31, 2021.
Details of the unaudited results showed that its profit before tax (PBT) grew by 53.9 per cent from N6.6 billion in the corresponding period in 2020 to N10.1 billion in the period under review. Similarly, net revenue in the period increased by 13.4 per cent from N30.3 billion in the first quarter (Q1) 2020, to N34.4 billion at the end of March 2021. The bank also recorded growth in other performance indices.
Top Nigerian lender, Fidelity Bank Plc recorded a strong financial performance in the first quarter of 2021, posting appreciable growth in profits for the period ended 31 March 2021.
Details of the unaudited results, released at the Nigerian Stock Exchange (NSE) show that Profit before Tax (PBT) grew by 53.9% from N6.6bn in 2020 to N10.1bn for the corresponding period of March 31, 2021. Similarly, Net revenue in the period increased by 13.4% from N30.3bn in Q1 2020 to N34.4bn in 2021, just as the bank recorded growth in other performance indices.
Nneka Onyeali-Ikpe, MD/CEO of Fidelity Bank Plc commenting on the results, stated that:
“We commenced the year showing impressive double-digit growth in profitability and improved performance across key efficiency indices whilst ensuring our business model continued to deliver strong positive results in line with our guidance for the 2021 financial year.
Gross Earnings increased by 7.7% YoY to N55.1bn on account of 66.7% growth in non-interest revenue to N12.1bn from N7.2bn in Q1 2020. In absolute terms, the increase in NIR came from FX related income, digital banking income and account maintenance charge etc. as total customers’ induced transactions across all our service channels increased by 30.4% YoY and 17.1% QoQ.
Net Interest Margin remained unchanged at 6.3% compared to 2020FY as the drop in average funding cost offset the decline in average yields on earning assets. Average funding cost dropped to 2.5% from 3.6% in 2020FY due to a combination of improved deposit mix and a slight moderation in average borrowing cost. This led to 26.2% decline in total interest expenses, which translated to 17.1% increase in net interest income to N28.8bn despite a 4.3% increase in interest bearing liabilities. We refinanced our 7-Yr N30.0bn Tier II Bonds issued in 2015 at 16.48% p.a. with cheaper 10-Yr N41.2bn Tier II Bonds priced at 8.5% p.a., which led to a 61bpts drop in average borrowing cost to 4.5%.
Operating Expenses increased by N1.3bn (6.2%) to N23.0bn largely driven by N4.3bn growth in regulatory charges (NDIC & AMCON Charges). Excluding the increase in regulatory charges, total operating expenses would have dropped by 13.8% (6.1% QoQ) to N18.6bn from N21.6bn in Q1 2020 (Q4 2020: N19.8bn).
Total Deposits increased by 3.1% YTD to N1,751.3bn from N1,699.0bn in 2020FY, driven by 5.5% increase in low cost deposits (Demand: 6.2% | Savings: 4.1%). Foreign currency deposits increased by 15.7% YTD (N46.9bn) and now accounts for 19.7% of total deposits from 17.5% in 2020FY, as we harness the benefits of our renewed drive in Diaspora Banking as well as the recent CBN Naira-for-Dollar Incentive Scheme for diaspora remittances to Nigeria.
Retail Banking continued to deliver impressive results as savings deposits increased by 4.1% YTD to N441.6bn and we are on course to achieving the 9th consecutive year of double-digit growth in savings deposits. Savings deposits was responsible for 32.9% of the absolute growth in total deposits and now accounts for 25.2% of total deposits compared to 25.0% in 2020.
Net Loans and Advances increased by 7.6% YTD to N1,426.3bn from N1,326.1bn in 2020FY. However, the actual growth was 6.8% while the impact of the currency adjustment (2020FY: N400.3/$ – Q1 2021: N407.6/$) accounted for a 0.8% YTD growth in the loan book. Cost of risk came in at 0.4% and the NPL ratio dropped to 3.6% from 3.8% in 2020FY.
Other Regulatory Ratios remained above the required thresholds with liquidity ratio at 33.9% and capital adequacy ratio (CAR) at 18.4% from 18.2% in 2020FY.
We are committed to sustaining our growth trajectory and achieving the long-term strategic aspirations of the Bank as we look forward to delivering another set of good results in the next quarter”.
