Home Business Fidelity Bank targets 10 per cent deposit growth in 2015

Fidelity Bank targets 10 per cent deposit growth in 2015

by Business News Report

Managing Director, Fidelity Bank Plc, Mr Nnamdi Okonkwo said on Tuesday that the bank was targeting a deposit growth of 10 per cent for the financial year ending December 31, 2015. Okonkwo said this at the bank’s “Facts Behind the Figures,’’ held at the Nigerian Stock Exchange (NSE) in Lagos.
He said that the bank in 2014 recorded a deposit growth of 1.7 per cent; the target would be visible through branch expansion and aggressive growth in its retail customer base.
Okonkwo said that the bank would open 25 branches in 2015 and would also use electronic channels to reach out to more customers. He said the bank was targeting a non-performing loan (NPL) ratio of 4.0 per cent, against the 4.4 per cent achieved in 2014, on a net interest margin of seven per cent.
According to him, this is in comparison with six per cent posted in 2014. The managing director explained that the bank would continue to ensure regular payment of enhanced dividend to all its shareholders. According to him, the bank is targeting a proposed dividend of 50 per cent of profit after tax in 2015, as against the 37.8 per cent declared in 2014.
On the bank’s recent bond, Okonkwo said that the N30 billion, 16.48 per cent fixed rate subordinated unsecured bonds due in 2022 was fully subscribed. He said that the bond which was closed on May 13, would enable the bank to be a dominant player in the small and medium enterprises (SMEs) sector of the economy. Okonkwo said that the fund would be used to expand its support to the SMEs and retail segments of the market.

He explained that the fund would count as tier II capital, in line with the guidelines of Basel II of the Central Bank of Nigeria (CBN).
The managing director said that the bank’s Capital Adequacy Ratio (CAR) was in excess of 22 per cent higher than the 15 per cent threshold of the apex bank. He said that the offer was fully underwritten, which showed the level of confidence of investors in the bank. Okonkwo said that the bank was committed to its four growth strategies, to ensure enhanced returns to all stakeholders.
He said that the strategies were an enhanced balanced sheet, growth in retail and SME growth, migration of customers to electronic channels and efficiency in customer service.
Okonkwo said that the bank had disbursed N80 million to three firms under the N220 billion Micro Small and Medium Enterprises (MSME) fund. The MSME fund was established by the CBN in 2014 for lending to MSMEs at nine per cent interest rate.
The three companies were Petters & Daniels Industries Ltd, Uzo-Best Nigeria Ltd, and Pecho Plastics.
Earlier, Mr Oscar Onyema, NSE Chief Executive Officer, said that the exchange would ensure continuous introduction of value added services and products to satisfy yearning investors. Onyema, who was represented by Mr Ade Bajomo, NSE Executive Director (Market Operations), said that it would leverage on global best practices to restore the confidence of both local and foreign investors. He said that the exchange would strengthen its strategies to increase investors’ participation level in the market.
Onyema commended the bank for ensuring regular payment of dividends to shareholders since it listed 10 years ago. He, however, enjoined the bank to ensure strict adherence to post-listing requirements and ensure prompt release of audited and non-audited results.

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