Fidelity bank lauds FG’s focus on SME’s/Agric

..As Ebi assures strict adherence to dividend policy

Fidelity Bank Nigeria Plc has commended the federal government on its commitment to boost the nation’s economy through increased commitment to the Small and Medium Scale Enterprises (SMEs) and agriculture.

Chairman, Fidelity Bank, Mr. Ernest Ebi, while lauding the government’s commitment to the real sector, said that such development tallies with the bank’s commitment to the real sector as it will further enhance its commitment to agriculture and SMEs.

Ebi said “hence the emphasis of government is on Small and Medium Scale Enterprises (SMEs) and agriculture, Fidelity bank is also focusing on growing the reals sector , supporting Nigeria in its growth agenda and at the same time empowering cross section of Nigerians to grow their business, contributing to the nation’s economic growth through SME’ s and agriculture”

Mr. Ernest Ebi, gave the assurance at the bank’s Annual General Meeting (AGM) in Lagos on Thursday, shortly after shareholders had endorsed 14 kobo per share dividend payment and approved appointment of new directors, including Ebi.

He assured the shareholders of commitment to growing earnings through increased investments in SMEs, agriculture, among new opportunities that 2017 provides, driving higher dividend payments and increasing earnings.

Chairman, Ernest Ebi said that Fidelity bank’s dividend policy will be strictly adhered to, assuring that the bank would look into sanctions and work towards reducing its occurrence to increase shareholders take-home.

“One of my priorities is to de-risk the business by enhancing our risk management framework, we are also very aggressive in our debt recovery. We have significantly improved on disclosures, corporate governance and cost management. We have to pursue cost reduction, we have given ourselves target”

The chairman, reiterated the bank’ s commitment to meeting with its year’s bearing irrespective of challenging operating environment, saying that the bank’s gross earnings in 2016 grew by 3.5 per cent, to N152 billion from N146.9 billion. Adding that total earnings growth came from interest income on loans which rose by 9.3 per cent to N92.7 billion from N84.8 billion in 2015, as well as 9.6 per cent growth in net fees and commission income.

Total interest expenses, he said , increased by 1.5 per cent from N60.3 billion in 2015 to N61.2 billion which was due to devaluation impact on interest expense on borrowing.

According to him, the bank’s 2016 results, according to the chairman showed that operating expense rose by 4.7 per cent to N67.2 billion form N64.2 billion in 2015, due to N4,8 billion increase in staff gratuity and retirement benefit plan.

The chairman gave the assurances in response to issues raised by cross section of shareholders, having approved the 2016 audited financial statements, and endorsement of the 14 kobo dividend per share, proposed by the bank’s board.
Nnamdi Okonkwo, Managing Director and CEO of the bank explained that outlook for 2017 remains buoyant, hence the bank is positioned to take advantage of opportunities in 2017 “ and will try to grab the lion share”

‘As we do that, we will not relent on plans to redesign our systems and processes to boost service delivery, intensify strategic effort to reduce operating expenses and cost to serve, as well as improve our overall risk”.
He said that e bank is deepening its effort in the retail and commercial market, as well as Small and Medium Scale Enterprises (SMEs).

Meanwhile , cross section of the bank’s shareholders including sir Sunny Nwosu, Nona Awo, Okezie Boniface , Adio Alex among commend the bank for rewarding shareholders with 14 kobo dividend in a depressed economy. They also raised sundry issues requiring chairman’s comment.