Fidelity assures on more robust operations going forward

Rewards shareholders for faith in bank

By Nsikan Ikpe

Fidelity Bank Plc has assured its stakeholders of its commitment to driving more robust operations that would lead to its achieving its desired goals going forward.

The Managing Director of the financial institution, Mr. Nnamdi Okonkwo made the commitment in his speech at its recently held A29th nnual General Meeting, AGM .

Specifically, Okonkwo promised to work out modalities that would promote the business activities of the bank to ensure that it meets its set objectives. He also stated that the bank under his watch would continue to improve its earnings capacity across the different segments of its business.

Speaking at the event which was held in Lagos, Nigeria, he decried the rash of government policies, and particularly as they affect financial institutions. According to him, the 2016 financial year under review was challenging, saying that it was characterized by lower government revenues, rising inflation and lower consumer disposable income, all of which combined to make life significantly tougher for business operators.

Speaking also, Chairman, Fidelity Bank, Mr Ernest Ebi, assured shareholders that the bank would continue to maintain and implement strategic policies aimed at ensuring the delivery of dividends in the interest of shareholders. According to him, despite the drop in profitability, ‘we remain strong, boasting of a capital adequacy ratio of 17.2 percent in 2016, which indicates that we remain  above the regulatory minimum of 15.0 percent.’

Among the other highlights of its performance in its financial year ended December, 31st, 2016, the bank rewarded its shareholders for their faith and loyalty by paying a dividend of 14kobo per share held.

Overall, the bank’s gross earnings significantly grew by 3.5 percent to N152.0 billion from N146.9 billion. The growth in total earnings was chiefly generated from interest income on loans which grew by 9.3 percent to N92.7 billion from N84.8 billion in 2015. Total interest expense also increased by 1.5 percent from N60.3 billion in 2015, while operating expense also increased by 4.7 percent to N67.2 billion in 2016 from N64.2 billion in the previous year.