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Fidelity Bank Plc Announces a 53.9% Growth in Profit Before Tax to N10.1bn For the 3 Months Ended 31 March 2021

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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”.

News and Report

“We Will Destroy Their Investments Before Wednesday’’ – Newly Elected LG Chairman Warns Wike (VIDEO)

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The newly elected chairmen of Obior Akpor Local government in Rivers state, Amb. Chijioke Ihunwo has revealed that there will be retaliatory attacks following the activities of unknown hoodlums that set three local governments on fire today.

 

There has been crisis in Rivers state due to the power tussle between the former governor, Nysom Wike and his successor, Sim Fubara.

 

 

The power tussle led to the local government election that held in the state on Saturday with APP, a party backed by Sim Fubara, winning 22 out of 23 local governments. The elected council bosses were sworn-in on Sunday to avoid court cases stopping their swearing in.

 

 

However, hoodlums alleged to be working for the minister of FCT, Nysom Wike stormed some local government secretariat and set them on fire.

 

In a response, Amb Chijioke made it known that they will go after anyone that attacks his local government secretariat and destroy their investments in the state.

 

He also warned the former governor not to meddle into the affairs of the state because he has investments at stake in the state.

 

 

WATCH VIDEO BELOW

 

 

https://x.com/Topboychriss/status/1843354599308300305

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Rivers State: IGP orders immediate unsealing of LG secretariats

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In response to nationwide condemnation over his involvement in the recently concluded local government elections in Rivers State, Inspector General of Police Kayode Egbetokun has directed the immediate unsealing of secretariats across all 23 local government areas (LGAs) in the state.

 

 

A statement issued on Monday by the Police Public Relations Officer of the Rivers State Command, Grace Iringe-Koko, conveyed the directive. It explained that the newly deployed Commissioner of Police, CP Bala Mustapha, was tasked with ensuring the withdrawal of all police personnel who were initially deployed to seal and safeguard the LGA secretariats.

 

 

 

“This decision aligns with the Nigeria Police Force’s commitment to maintaining neutrality and ensuring the smooth operation of democratic institutions,” the statement read.

 

The directive follows the political tension that erupted after the purported extension of tenure for former council chairmen loyal to FCT Minister Nyesom Wike. The move was countered by Governor Siminalayi Fubara’s appointment of caretaker committee (CTC) chairmen, leading the IGP to order the sealing of the secretariats.

 

 

This action prevented local government workers and the CTC chairmen from accessing the council secretariats and carrying out their daily duties.

 

In light of the recent order to unseal the secretariats, the statement clarified that police would only be redeployed to these locations in the event of a crisis or breakdown of law and order. “Emergency measures will be swiftly implemented to restore normalcy if necessary,” the statement added.

 

 

The Rivers State Police Command reassured the public of its commitment to maintaining peace and order and urged residents to remain calm and law-abiding as the situation evolves.

 

The newly sworn-in 23 council chairmen are expected to resume work in their respective LGAs today, where they will also swear in the newly elected councillors.

 

 

 

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News and Report

Rivers crisis Update: Wike camp heads for court as Fubara swears in LG chairmen

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APC, PDP factions vow legal battle as gov, Atiku, others counsel LG chiefs on residents’ welfare

 

 

The Rivers State Peoples Democratic Party and the All Progressives Congress factions on Sunday rejected the conduct and outcome of the local government election, stating that no election was held in the state on Saturday.

 

The Rivers PDP loyal to the Minister of the Federal Capital Territory, Nyesom Wike, described the poll as an exercise in futility, vowing to challenge it in court.

 

The Wike camp said this as the Rivers State Governor, Siminalayi Fubara, swore in the newly elected council chairmen of the 23 local government areas of the state.

 

 

The exercise was held on Sunday at the Executive Council Chamber of the Government House in Port Harcourt, the state capital, hours after the chairmen were issued certificates of return by the Chairman of the Rivers State Independent Electoral Commission, Adolphus Enebeli.

 

The Saturday council election, which was marred by explosions and gunfire, was won by the Action Peoples Party which secured 22 out of 23 chairmanship positions, while the Action Alliance candidate won one seat.

 

The APP also won 314 out of the 319 councillorship seats in the 23 LGAs in the state.

 

 

The exercise was complicated by the ongoing power struggle between the Fubara and his predecessor, Wike.

 

After losing control of the PDP to Wike, Fubara’s supporters switched to the APP, securing chairmanship positions in their local government areas.

 

PDP challenges poll

 

Speaking to The PUNCH hours after the election winners were sworn in, the state Publicity Secretary of the PDP, Kenneth Yowika, said the party would challenge the conduct of the poll in court.

 

 

We are pressing further through the courts to ensure that justice is done and seen to have been done. So, we do not agree nor do we recognize if any swearing-in is taking place today (Sunday) or tomorrow (Monday),” he asserted.

 

Yowika said from the beginning, the ruling party in the state had insisted on the Federal High Court judgment barring the conduct of the council poll, pointing out that what the state government did was illegal.

 

Yowika said, “First of all everything concerning that issue is illegal. We have said it clearly that elections should not be held, you know, relying on the Federal High Court judgment delivered by Justice Peter Lifu.

 

 

And I had said before this time that any action taken regarding the issue of the local government will be futile because if we say we are a country that stands by the rule of law, then we should not be doing things that are contrary to the law.

 

“The law had said do things that will be in line with the judgment of the Federal High Court and the Government of the day has not obeyed that.

 

“So, we are a law-abiding party. We are not going to come out physically to begin to fight. We had a protest yesterday (Saturday) clearly showing that there was no election.

 

 

And we stand by that decision that we have taken that there was no election, and we wait for the judiciary and other arms of government that should put things in proper perspective to act. We continue to hold on that there was no election.”

 

Continuing, he said, “We visited the Rivers State Independent Electoral Commission yesterday and clearly, the world saw that there was no election there. So, we stand by the ruling of the Federal High Court which said that that election should not go on.

 

“Well, they went ahead to do whatever charade people saw and that is not acceptable by the Peoples Democratic Party. Like we said we are a law-abiding party, and we stand to remain that.”

 

 

Similarly, Chibuike Ikenga, Publicity Secretary of the Chief Tony Okocha-led APC insisted on the Federal High Court judgment which restrained the state government from conducting the poll.

 

 

Ikenga also said the swearing-in of the election winners ‘is neither here nor there,’ saying the party is pressing further through with the law.

 

“As a party, we insist on obeying the decisions of the Federal High Court under Justice Peter Lifu. And that is the reason why we did not acknowledge that any election ever took place. But the government is known for disobedience of court order went ahead. So, they are on their own.

 

“Our position is that you cannot put something on nothing and expect it to stand. So, whether anybody has been sworn in or not is secondary, we are not aware and we are not interested in whether it took place yesterday (Sunday) or today (Monday).

 

 

 

We are pressing further through the courts to ensure that justice is done and seen to have been done. So, we do not agree nor do we recognize if any swearing-in is taking place today or tomorrow,’’ he stated.

 

Asked if the party will return to the court based on the latest developments, he said, ‘’The state government already took the matter to the Court of Appeal where they asked for a stay and the stay was refused. So, the matter is on at the Court of Appeal.”

 

 

However, the APC loyal to the former Minister of Transportation, Rotimi Amaechi, expressed satisfaction with the outcome of the election, saying it would not contest the outcome.

 

Chizi Enyi, who is the Chief of Staff to the APC Chairman, Emeka Beke, said the party did not lose out because it won a councillor slot.

 

 

The APC won the council slot. We are satisfied with the election held. Our biggest worry was those who said the election should not be held. So, we accept the outcome and we will not litigate it,” he said.

 

The Rivers State Commissioner for Environment and immediate past Publicity Secretary of the PDP, Sydney Gbara, also expressed satisfaction with the election, describing it as the freest and fairest election in the history of the state.

 

Gbara said, “Yes, I’m very satisfied and I can tell you that this is the freest and fairest and most peaceful election that has been conducted in Rivers State so far. The most striking thing about the election is that there was no police security yet everywhere was peaceful. That is the most interesting thing about the election.

 

 

 

This is the best election that Rivers people came all out to participate in because they know that their future depends on yesterday’s election.”

 

Asked why he was excited even though his party did not win any slot, he said the interest of the state is paramount.

 

Gbara stated, “It is unfortunate that my party withdrew from the contest but as a Rivers man, the interest of the state supersedes any other interest, any personal or individual or group interest.

 

“For me, it is a step of liberation for the Rivers people and it is a day we have all been waiting for.”

 

 

Addressing the election winners, Fubara said the state has now entered into a season of transformation where democracy would not only thrive but the people shall witness the delivery of democratic dividends that satisfy their aspirations.

 

He acknowledged with great delight the support of Rivers people in the fight to salvage the local government system, according to him, ‘’it was at the precipice of doom because of the activities of some distractive political forces that wanted a grip on it.’’

 

He said that the pressure to destroy the LG system in Rivers State became intense three days before Election Day when an attempt was made to invade the RSIEC Headquarters.

 

 

The governor said, “But the truth remains, desperate situations require desperate measures. We were confronted with a situation where the local governments of this state was heading for doom.

 

“And the truth about it is, because of the genuine love that we have for this state, we must salvage the local government election. And what we did, with the support of Rivers people, was to salvage the local government council. And to the glory of God, that has been done and dusted.”

 

Fubara said with the elections now over, his administration would not engage in undemocratic action to confront or fight anybody.

 

Rather, he promised to deploy peaceful means to protect the state’s assets.

 

Read More here;

 

 

https://punchng.com/rivers-crisis-wike-camp-heads-for-court-as-fubara-swears-in-lg-chairmen/

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