Fidelity Bank Plc posted an impressive half year results for 2018, recording a double-digit growth in key revenue lines and achieving significant traction in her chosen business segments.

Details of the audited half year results, for the period ended June 30, 2018, released at the Nigerian Stock Exchange (NSE) on Wednesday showed a 27.3 percent jump in Profit Before Tax (PBT) from N10.2 billion in the previous period to N13 billion in the reporting period. Profit After Tax (PAT) rose by 31 percent to close at N11.8 billion from N9.03 billion recorded in 2017, whilst gross earnings rose by 3.6 percent from N85.8 billion to N88.9 billion.

In other indices, total assets grew by 13.7 percent to N1,567.6 billion from N1,379.2 billion in the previous period while total deposits– a measure of customer confidence, increased by 19.7 percent to close at N927.9 billion from N775.3 billion in 2017.

Commenting on the results, Fidelity Bank CEO, Mr. Nnamdi Okonkwo attributed the impressive performance to the disciplined approach in managing the balance sheet growth of the bank, it’s strategic cost containment initiatives; focused attention to chosen business segments and determined execution of its retail and digital banking strategy.

He stated that “Gross earnings, net fee and commission income all grew primarily due to the increase in transactional activities. Our digital banking initiative continues to gain traction with almost 40 percent of our customers now enrolled on our mobile/internet banking products and over 80 percent of total transactions now done on our digital platforms”.

As shown in recent years, Fidelity Bank’s retail digital banking strategy has continued to positively impact the business. This was again evident in the HI 2018 results as savings deposits increased by 10.6% to N197.5 billion. “The bank is on track to achieving a 5th consecutive year of double-digit savings growth. Low cost deposits now account for 73.8% of total deposits” he explained further.

Although Total Operating Expenses grew by 5.7% to N32.7 billion, Okonkwo maintained that the bank’s cost to income ratio remained relatively stable at 67.7% when compared to 67.5% reported in the previous year.

This is in spite of the double-digit inflationary environment in Nigeria. With regulatory ratios such as the Capital Adequacy Ratio at 17%, Liquidity Ratio at 33.2%, well above required threshold, Okonkwo was optimistic that the bank will sustain this sterling performance in the second half of the year.

About Fidelity Bank Plc

Fidelity Bank Plc is a full-fledged commercial bank operating in Nigeria with over four (4) million customers who are serviced across its 240 business offices and various digital banking channels.

The bank which is focused on select niche corporate banking sectors as well as Micro Small and Medium Enterprises (MSMEs), has in recent times won accolades as the Best SME Friendly Bank, Best in Mobile Banking and the Most Improved Corporate/Investment Bank among several industry awards and recognition.

Cordros Capital says in line with its expectation, the Monetary Policy Committee (MPC) – faced with choice of hiking or leaving policy parameters unchanged – elected to maintain status quo by keeping all monetary policy metrics at current levels.

As with the last meeting in July, three members of the Committee voted for a rate hike, while 7 members voted in favour of a hold. Pertinently, three of the members that leaned in favour of a hold, also voted for 150bps hike in CRR, thereby signalling a firmer hawkish stance.

For us, it is important to reiterate that the (1) elevated maturity profile over the rest of the year, (2) liquidity implication of election-related spending, (3) flood-induced pressure on domestic food prices, (4) tighter domestic food supply amidst lingering security issues in food producing areas, and (5) higher FAAC disbursements, driven by rising oil proceeds, portend upside risk to inflation.

However, on the currency, the MPC’s expectation that the foreign reserve would be supported by strong oil prices (above budget benchmark) and improved domestic production towards the end of the year, suggests that the CBN is unlikely to change its policy in that space soon.

Against the backdrop of the above, and with a more conservative growth outlook, we see the MPC keeping the key rate on hold in the near term.   That said, we note that a rate hike is not completely out of sight, with (1) indeed increasing member of the Committee striking a hawkish tone, (2) a low base 2018 headline inflation likely to result in higher y/y headline inflation over H1-2019, and (3) the possible hike of PMS and electricity prices after the elections next year pressuring prices.

The Chief Operating Officer of Rand Merchant Bank Nigeria (RMB), Mr. Funso Odukoya, has called for increased awareness on issues around financial inclusion in the country.

Odukoya spoke during a panel session at the 2018 Annual National Conference of the Finance Correspondents Association of Nigeria (FICAN), with the theme: “Banks, Fintechs and Nigeria’s Financial Inclusion Journey,” held in Lagos, recently.

“To achieve financial inclusion, we need to educate everyone. Let’s get the information out there and let’s bring people into the financial system.

“We can achieve this by understanding our culture and by leveraging information to make sure everybody understands what financial inclusion is about,” he said.

Responding to a question on reports that banks don’t lend to fintechs because of competition, Odukoya said: “Banks carry out due diligence before they lend to any sector. You really must do the due diligence before you can lend to anybody. Bankers are just understanding the risk now.”

But, he pointed out that in most countries where fintechs had developed, “you will discover that they are not really dependent on banks’ funding.”

“There are venture capitalists and private equity companies that look into the value the start-up is bringing and they provide funds to those companies.

“So, fintechs that are struggling for funds, I would say is because they have no value to offer. If a fintech start-up has value, funding will seek such a firm out.

“We have instances of young start-ups that are flooded with funding because they are bringing value to the table.”

Continuing, he said: “But the relationship between the banks and fintechs has to be collaborative. It mustn’t be we against them; it has to be all of us working together to achieve the ultimate goal of reaching out to everyone.

“So, the goal is not for fintechs to overtake banks, or banks to overtake fintechs. The goal is to reach out to everyone and make financial services affordable and available to everyone.”

The African Development Bank’s Fund for African Private Sector Assistance (FAPA) has provided funds totaling nearly US $2 million to its Jobs for Youth in Africa initiative.
FAPA, of which the Government of Japan is a major donor, along with the Austrian Government and the African Development Bank, will contribute $923,570 and $988,202 to finance the Bank’s Fashionomics Africa Digital Marketplace and Entrepreneurship & Innovation Lab (eLab) programs, respectively.

Both programs form key components of the Bank’s Jobs for Youth in Africa Strategy, which invests in high-growth sectors with potential to promote youth and women’s empowerment, as well as create 25 million jobs over the next decade.
“Africa hosts the world’s youngest population, which will double to almost one billion by 2050. The continent needs to create jobs much faster, particularly for women and youth,” said Vanessa Moungar, Director of Women, Gender and Civil Society Department at the Bank.
“FAPA’s generous support will go a long way to accelerating the Jobs for Youth Entrepreneurship & Innovation Laband Fashionomics Africa Digital Marketplace programs that contribute to meeting these needs,” Moungar further remarked on Thursday, 13 September 2018, during the funding announcement event, which was themed “Entrepreneurs 2.0 – When fashion meets technology”.
Attended by bank staff, dignitaries, public and private sector stakeholders, the event was also graced by fashion designer PatheO’, known for making the distinctive, colorful shirts worn by the late Nelson Mandela and Salimou Bamba, Managing Director of Abidjan-based SME development firm, AGENCE CI PME.
The Fashionomics Africa Digital Marketplace and Entrepreneurship & Innovation Lab (eLab) programs align with FAPA’s vison to create an investment-friendly climate for micro, small and medium-scale enterprises (MSMEs) on the continent. They will also provide platforms for strengthening and promoting entrepreneurship that target women and youth-led businesses.
Launched in 2015, the Bank’s Fashionomics Africa initiative supports its “High 5” priorities, in particular, the Jobs for Youth in Africa and Industrialization agenda. FAPA’s latest support for this initiative will enable the development of the digital platform and application designed to increase and facilitate access to markets and finance; provide access to relevant information, mentorship and networking opportunities as well as develop the skills, competencies and qualifications of African designers and fashion entrepreneurs. 
The eLab program will provide innovative young entrepreneurs with financing, technical assistance and broader ecosystem support. With eLab, “We aim to support the next generation of business owners across the continent,” said Babatunde Olumide Omilola, Manager for Public Health, Security and Nutrition at the Bank.

“Target beneficiaries are businesses started by young people and intermediaries that support business development, focusing on the three sectors identified as priorities by the Jobs for Youth in Africa strategy, namely agriculture, Information and Communication Technology and industry.”
Addressing Bank staff and guests, Mr. Takuji Yano, the Bank’s Executive Director for Japan, Saudi Arabia, Argentina, Austria and Brazil said:

“Both projects focus on promoting entrepreneurship and ICT tools as drivers for development. By leveraging technology, African countries can enhance understanding of markets, expand education and employment, and deliver monetary benefits for the informal sector and government alike. We are happy to see this diverse, innovative and creative portfolio of FAPA’s proposals.”

Heritage Bank Plc has stressed the need for sustained collaboration between banks and financial technology companies (fintechs). This will support Central Bank of Nigeria’s (CBN) drive for financial inclusion and promote economic growth.
Managing Director of Heritage Bank, Mr. Ifie Sekibo, said this while delivering a goodwill message at the 2018 Annual National Conference of the Finance Correspondents Association of Nigeria (FICAN) held in Lagos, recently.
Sekibo, was represented at the event by the bank’s Divisional Head, Corporate Compliance, Mr. Wumi Adeniyi.
Sekibo, pointed out that over the years, Heritage Bank has developed solutions to promote financial inclusion.
He said Heritage Bank had taken bold steps to boost the CBN’s initiative of reducing the numbers of unbanked Nigerians the country, by offering financial services to the nooks and crannies of Nigeria thus providing access to the under-served markets.
“We all agree that our target is to achieve acceleration of financial inclusion. Those who are financially excluded are majorly technologically excluded.
“That means that we cannot push financial inclusion if we do not also push technology inclusion. We believe that by partnering fintechs, the financial services industry will push for inclusion and improve the economy. “That is because the financially excluded persons actually constitute a gap in the financial system and there is no way we can create a perfect economy except we bring all these people on board.
“Another issue is that the older generation is averse to technology because they have not been exposed to it and the fear of fraud. The CBN and the banks will continue to improve on our technology space.
“We might still have issues, but with the creation of the Consumer Protection Department of the CBN, the customers are sure of protection.”

Opportunities for investment in Africa outweigh the obstacles, according to a report by leading African companies covered in the African Development Bank’s new Africa-to-Africa (A2A) Investment Report, the first ever report on inter-African trade published by the Bank.
The report unearths the realities African companies face when investing in the continent, the emerging trends in A2A investment and the steps African policymakers can take to accelerate intra-African investment.
Africa-to-Africa Investment Report: A first look, finds that more African companies are investing in Africa. These companies have confidence in the continent’s long-term growth potential; they are at the cutting edge of their industries, and are capitalizing on their knowledge of local markets to generate higher returns and impact.
In line with the Bank’s High 5s for transforming Africa and the African Union’s Agenda 2063, the A2A Report aims to take the conversation on investing in the continent a step further. It shows what African multinationals are doing to drive investments in Africa, d how they are expanding their African footprint, and gives insights into how to scale-up investments more widely.
“As global foreign direct investment to Africa falls, intra-African investments are picking up pace,” said Akinwumi A. Adesina, President of the African Development Bank Group. “Africa’s big companies are increasingly on the move and expanding their African footprint. It is through more investments that the continent can build inclusive, sustainable growth and development. We have made this our collective commitment in the High 5s”.
The A2A Report features eight publicly-listed and privately-owned African companies operating in consumer services, finance, industry, media and diversified portfolios and investment, with home bases in North Africa (Morocco), West Africa (Nigeria, Togo), East and Central Africa (Ethiopia, Kenya) and Southern Africa (Mauritius, South Africa).
Highlights from the Report’s intra-African investment stories include the importance of having a clear long-term vision, getting up-to-date investment facts, building local partnerships to deliver on the ground and tapping into talent in the local labour force.
The business case for A2A investment is strongly connected to the continent’s integration, growth and prosperity. Although challenges remain, the A2A Report is the start of a broader discussion to fast-track investments, move beyond the wish list and make deals happen. The continent’s policymakers can inspire a greater level of confidence and promote A2A investments by highlighting their role as dependable business partners for African investors.
The Report is part of the Bank Group’s continued championing of investment across Africa, along with the firstAfrica Investment Forum (AIF) (AfricaInvestmentForum.com), scheduled to take place in Johannesburg, South Africa from 7-9 November 2018.

When the Central Bank of Nigeria (CBN) sacked the management of Skye Bank Plc in 2016 and named a new management to run the bank, the apex bank and the new managers promised that all was well with Skye Bank.

That promise however unraveled last Friday when the CBN once again intervened in the affairs of Skye Bank, this time revoking its operating license along with change of name to Polaris Bank Limited and new logo.

The next day, the retained management of the ‘NEW’ Polaris Bank issued this promise:

“Polaris Bank Limited shall continue to pay interest on all deposits in accordance with any deposit agreement formerly existing between each depositor and Skye Bank Plc. as at the date of assumption of such deposit by Polaris Bank Limited. In the event that Polaris Bank Limited seeks to make any changes to interest payable on any deposits, any such changes shall be notified in writing to each depositor and shall only take effect after a reasonable time following the giving of such notice.”

The statement was signed by Mr. Adetokunbo M. Abiru and Muhammad K. Ahmad, Group Managing Director/ CEO and Chairman, Polaris Bank Limited respectively.

However, worried customers of Skye Bank are asking one crucial question: Is the present promise by the CBN and Polaris Bank Limited genuine or fake? Or is it another ploy to keep worried customers from fleeing the bank for good before the roof finally crashes to the ground given past experiences?