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FIDELITY BANK BEGINS INTERNATIONAL EXPANSION DRIVE

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Fidelity Bank

FIDELITY BANK BEGINS INTERNATIONAL EXPANSION DRIVE

Fidelity Bank

With its half-year 2022 results showing a 20.7 per cent rise in profit after tax year-on-year, Fidelity Bank Plc, which last week announced the planned acquisition of Union Bank UK, is leaving no one in doubt with its readiness to avail itself of the tremendous gains of international presence.

In response to their peculiar needs and ever-changing business environment, commercial banks in Nigeria have continued to raise their scale through deliberate acquisitions and business combinations.

 

 

 

This is because, unlike in the past when the Central Bank of Nigeria (CBN) had to raise the capital threshold, forcing banks to either opt for public offers to raise additional funds or merge with operators with similar visions, it is the competition for the sphere of influence that is driving most mergers and acquisition these days.

Analysts attribute the development to the shrinkage of business opportunities amid the current global economic challenges.

 

 

 

Banking industry watchers said with the keen competition by fintech companies and the rising appetite of consumers of banking products for innovations and risks, there are pressures on banks to leave their comfort zones and respond to these growing needs.

Consequently, banks decided to go for options that are best suited for them including the option of a holding company where they bring their non-banking operations under one umbrella. Others decided to go for acquisitions to create a niche for themselves.

 

 

 

 

 

 

It is under the latter category that Fidelity Bank Plc falls as it announced a business combination with a United Kingdom bank last week.

The bank disclosed that it has entered into a binding agreement for the acquisition of a 100% equity stake in Union Bank UK Plc for which the central bank has issued a letter of no objection.

 

 

 

 

 

The move is seen as an opportunity for Fidelity Bank to optimise its international banking licence and take advantage of the planned business combination with Union Bank UK, which has been offering competitive banking services including personal banking, trades finance, treasury management, and structured trade and community finance, which offers to individual and corporate clients for as far back as 1983.

Although the transaction is subject to the approval of the Prudential Regulatory Authority of the United Kingdom, Fidelity Bank officials said they hope to leverage the gains of the acquisition to improve the bank’s returns to its shareholders and to add value to its current and prospective customers.

 

 

 

 

 

 

Improved Half-Year Result

The news of the planned acquisition came the same week that Fidelity Bank’s half-year result for 2022 made its way to the public domain.

Analysts said with the impressive results, Fidelity Bank has demonstrated the capacity to be competitive in the Nigerian banking industry.

 

 

 

 

According to the unaudited half-year results, the bank posted a profit after tax of N23.307 billion for its 2022 half-year results, representing a growth of 20.72% year-on-year.

In the financials submitted to the Nigeria Exchange Group Limited (NGX), the bank also made significant improvements across key performance indicators.

 

 

 

 

The results indicate that the bank’s gross earnings rose by 37.87% to N154.843 billion from N112.304 billion reported in 2021, driven by a 50% growth in net interest income.

Profit before tax stood at N25.079 billion from N20.628 billion posted in 2021, representing a growth of 21.57%.

 

 

 

 

 

 

Interest and similar income using the effective interest rate method rose by 48.45% from N85.090 billion recorded in the first quarter (Q1) of 2021 to N126.348 billion in the period under review.

Based on the result the Board of Directors under the powers vested in it by Section 426 of the Companies and Allied Matters Act (CAMA 2020), proposed an interim dividend of 10 Kobo per share amounting to N2,896,258,569.20 from Retained Earnings as of 30 June 2022.

 

 

 

 

 

 

 

The Register of Shareholders will be closed on September 13, 2022. The qualification date is September 12, 2022.

On September 20, 2022 dividends will be paid electronically to shareholders whose names appear on the Register of Members as of September 12, 2022, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.

 

 

 

 

 

The planned acquisition of Union Bank UK signposts the final transition of the former Union Bank of Nigeria Plc to new separate owners. In December 2021, Union Bank’s core investors – Union Global Partners Limited and Atlas Mara –reached a Share Sale and Purchase Agreement (SSPA) with Titan Trust Bank (TTB) for the sale of 89.39 percent of Union Bank’s issued share capital.

The agreement came a decade after the initial investment by the core investors in 2012.

 

 

 

 

 

 

 

Commenting on the bank’s performance in March, the MD/CEO, Fidelity Bank Plc, Nneka Onyeali-Ikpe, said: “Digital Banking gained further traction driven by new initiatives in our retail business and the enhancement of existing digital banking products.

We now have 56.0% of our customers enrolled on the mobile/internet banking products and 90.0% of total customer-induced transactions done on digital platforms with digital banking business contributing 27.6% to net fee income.”

 

 

 

 

 

 

Fidelity Bank is described as a highly capitalised bank with a Capital Adequacy Ratio (CAR) of 19.8% in H1 2022. It successfully acquired and integrated two operating commercial banks (FSB and Manny Bank).

The bank boasts of a strong trade and export business with a diversified portfolio across sectors and market segments. It also has a wide distribution network serving over seven million customers. Today, Fidelity Bank is the only bank of its size in Nigeria with no business operation outside the shores of Nigeria.

 

 

 

 

Value Addition

At an interactive session with some financial journalists in Lagos last week, the bank’s Executive Director in charge of Operations and Information, Mr. Stanley Amuchie, explained that the acquisition aligns with the bank’s short to medium-term aspirations and international expansion drive.

Interestingly, UBUK’s competitive range of banking services includes Personal Banking, Trade Finance, Treasury Management, Structured Trade, and Commodity Finance which it offers to individual and corporate clients.

 

 

 

 

 

 

Listing the attraction in the UBUK, Amuchie said the bank offers a robust range of banking services to customers doing business from and into Africa, including trade finance, personal banking, business banking, treasury services, and commercial lending.

It is going to be a plus for Fidelity Bank to combine business with the UBK which provides extensive trade financing to businesses or individuals, that includes secure tracking of physical risks and events in the chain between importers and exporters.

 

 

 

 

 

 

 

 

Amuchie explained that up till now, what Fidelity Bank does when it needs to satisfy the demand of its Nigerian customers with banking needs in the UK is to work with other banks.

However, with the ongoing acquisition, the bank will not only meet the needs of its customers with ease, but it will also be able to conserve fees that it would have paid to another bank.

 

 

 

 

 

 

 

 

“Union Bank UK provides extensive trade financing to businesses or individuals that includes secure tracking of physical risks and events in the chain between importers and exporters,” he stated, adding that the bank provides transaction and liquidity management services to individuals and businesses, helping clients trade across borders and ensuring timely delivery and collection of payments.

Enhanced Product Offering

According to him, a significant captive business opportunity exists in Fidelity books as well as enhanced product offerings, bundled services, and cross-selling.

 

 

 

 

 

Other low-hanging fruits from the acquisitions include the offer of international banking service support, especially for HNIs in Nigeria, trade finance, and a corresponding banking relationship with Fidelity Bank.

In terms of operation, there is the prospect of cross-border collaboration in sales and client services, while the possibility of shared services will be considered.

 

 

Amuchie also talked about workforce transformation and integration of performance culture by the time the acquisition is fully consummated.

The acquisition also raises the prospect of significant captive business opportunities for UBUK from Fidelity Bank’s existing foreign currency transactions in Nigeria.

 

 

 

 

 

Fidelity Bank is also looking at the possibility of revenue and cost optimisation through cross-selling and shared services.

It is also believed that complementary business operations will enable strong value creation for shareholders and clear benefits for customers, staff, and other key stakeholders.

 

 

 

 

 

Throwing more light on the expectations from the acquisition, Amuchie pointed out that “UBUK will service other subsidiaries of Fidelity Bank under the proposed Holdco structure.

He added that there is potential for stronger customer loyalty and stickiness through integrated financial services and bundled products for diaspora customers and corporate banking clients, etc.

 

 

 

 

 

 

The bank was recently recognised as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards. It has also won awards for the ‘Fastest Growing Bank’ and ‘MSME & Entrepreneurship Financing Bank of the Year’ at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) Awards.

Commenting on the agreement, Onyeali-Ikpe said: “This transaction aligns with our strategic plan of expanding our services touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clients.

 

 

 

 

The diverse bouquet and business model of Union Bank UK offer a compelling synergy and we hope to build on the existing capacity to create a scalable and more sustaining service franchise that will support the wider ecosystem of our trade businesses and diaspora banking service

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WHO IS AFRAID OF FIDELITY BANK -By Udeme Etukeyen

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WHO IS AFRAID OF FIDELITY BANK -By Udeme Etukeyen

Leading up to the recent superlative annual reports showcasing one of the most significant growth experienced by a Nigeria Financial Institution in recent years I was forced to ask “what is Fidelity Bank” doing right?

My banking and financial sector experience got me digging deeper into the statistics of the report-Fidelity Bank recorded a substantial 210.0% growth in PBT, reaching N385.2 billion in FY 2024. Deposits increased by 47.9%, from N4.0 trillion in 2023FY to N5.9 trillion in 2024FY, Gross earnings shooting by 87.7% to N1,043.4 billion which was primarily caused by a 106.9% increase in interest and similar income. Was I impressed? Absolutely

Now to the scary part, they opened the year with a bang implying that 2025 year end results was going to be nothing but spectacular; check this out-Fidelity reported a whooping 167.8% increase in PBT (Profit Before Tax)to N105.8 billion in Q1 2025, compared to N39.5 billion in Q1 2024. Gross earnings from January to April had reached some N315.421 billion signaling a 64.21% increase year-on-year.

These results were nothing short of astonishing and with great hope I sat my team to review our Investment Strategy to accommodate taking up equities in Fidelity and advising our portfolio investors to do same.

We quickly appraised the fundamentals and Key Success Factors to include their focus on the strategic youth economy that the Creative and Digital Transformation sector promises, the banks bullish inroads in MSME promotion and financing, their glowing penchant for Gender inclusion without abandoning the core sectors of Mining, Renewables and other key industries

Then came the dissecting of Leadership, my team of analysts mostly female went on about Fidelity MD being one of the most experienced and affable Amazons in the industry; done this, achieved that and all the entreaties you’d expect from smart ladies who feel mentored from a distance. I didn’t hesitate to draw their attention to the experience of the menfolk within the organization like I had any measurable data to establish that mix…truth remains you can’t but admire the Banks Leadership and strides

A deeper look at the banks expansion globally could reveal a strategic and noiseless acquisition of Union Bank,London and their planned incursion into African and other European financial markets, you just can see that such daring strides and impact would give competition and detractors sleepless nights. Not in an era where sleeping pills are sold strictly by prescription and no thanks to the high cost of medication for peddlers of cheap propaganda

Within barely 30days of announcing such magnificent results little wonder how pundits would cook or spin a narrative to suggest a bank that has announced herself as First Tier with shoulders leveled up with other Banking giants would shudder over a judgement against her customer G.Cappa or even the contribution they would be required to cough out over that said Sagecom saga. With that judgement not going the way of pundits a contemptuous attempt at calculating interest at unclassified rates from an initial N14b to cause an unnecessary scare or negative press on the bank speaks volumes of how we unrepentantly strive to destroy value in our economy.

One would think that interpretation of the judgment and computation of due figures which will understandably come with a payment plan be awaited instead of the usual bad blood generated and envisaged by toddler media characters.

It is not in doubt that the discerning public sees through the cruise and flat falling attempt of dramatic clout chasers ever ready to stain Fidelity’s white apparel which savvy Investors and analysts are filled with bridal admiration

Like Joseph Campbell hinted in his famous quote “The cave you fear to enter holds the treasure you seek.” We cast our treasures and bets on Fidelity Bank as the Nigerian treasure house to beat in the years ahead!

*Udeme Etukeyen is an Abuja based Pan African Investment Advisory Expert*

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Fidelity Bank grows PBT by 167.8% to N105.8 billion in Q1 2025

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Fidelity Bank grows PBT by 167.8% to N105.8 billion in Q1 2025

Lagos, Nigeria – May 1, 2025 – Fidelity Bank Plc, one of Nigeria’s leading Tier-1 financial institutions, has announced a remarkable financial performance for the first quarter of 2025, recording a Profit Before Tax (PBT) of N105.8 billion, representing an impressive growth of 167.8% compared to N39.5 billion in Q1 2024.

The bank’s unaudited financial statements, released on the Nigerian Exchange (NGX) on April 30, 2025, highlight a substantial increase in Gross Earnings, which rose to N315.4 billion, marking a year-on-year growth of 64.2% from N192.1 billion in the same period last year. Growth in interest income was primarily led by 38.6% yoy (7.4% ytd) expansion in earning assets base, while the increase in non -interest revenue came from FX-related income, trade and commission on banking services, etc., supported by increased customer transactions.

Commenting on the bank’s performance, Dr. Nneka Onyeali-Ikpe,OON, Managing Director/Chief Executive Officer of Fidelity Bank Plc, stated, “We started the year with triple-digit growth in profit and sustained the momentum in our earning assets growth. This performance shows the resilience of our business model and reinforces our confidence in delivering a better result in the 2025 financial year.”

Other areas of the unaudited financial statements, equally show a marked improvement with Total Deposits growing by 11.1% ytd to N6.6tn from N5.9tn in December 2024, driven by 10.6% ytd growth in low-cost deposits to N6.1tn, which represents 92.2% of total customer deposits. Local currency deposits increased by 2.0% ytd while foreign currency deposits increased by 21.4% from $1.9bn in December 2024 to $2.3bn.

Net Loans and Advances increased by 5.0% ytd to N4.6tn. The growth in the bank’s Loan Book was skewed to LCY Loans as cost of risk declined to 0.6% from 1.5% in 2024FY.

“Beginning the year with such positive momentum reinforces our commitment to supporting the growth of individuals and businesses, while enhancing our financial sustainability. As we go into the rest of the year, we remain focused on building a resilient banking franchise with a diversified earnings base,” Onyeali-Ikpe added.

Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.

The Bank is the recipient of multiple local and international Awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook, and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine. Additionally, the Bank was recognized as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.

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“Calm Down, Wait for Facts!” — Oba Solomon Weighs In on Verydarkman Arrest, GTBank Boycott

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“Calm Down, Wait for Facts!” — Oba Solomon Weighs In on Verydarkman Arrest, GTBank Boycott

“Calm Down, Wait for Facts!” — Oba Solomon Weighs In on Verydarkman Arrest, GTBank Boycott

Controversial Nigerian preacher, Oba Solomon, has called for calm amid rising public outrage and online campaigns following the arrest of popular social media critic Verydarkman (VDM), which has sparked mass calls to boycott Guaranty Trust Bank (GTBank).

VDM was reportedly apprehended after visiting a GTBank branch with his mother to resolve issues related to unexplained debits. While the exact reason for his detention remains unclear, speculation that the bank collaborated with the Economic and Financial Crimes Commission (EFCC) to arrest one of its own customers has ignited a firestorm of backlash online.

But as hashtags trend and tempers flare, Oba Solomon is urging Nigerians not to jump to conclusions.

“I cannot tell the government to release VDM until I know his offence. Nobody is above the law,” he said in a viral video posted Saturday evening.

Breaking ranks with many social media influencers and online commentators, Solomon refrained from condemning either the EFCC or GTBank, instead urging Nigerians to wait for an official statement expected on Monday from the anti-graft agency.

“Everybody should calm down and wait till Monday when the EFCC will release the official statement on why he was arrested. If they fail to do that, we can then swear for them,” he added, injecting his characteristic mix of bluntness and satire.

The preacher emphasized the importance of due process and warned against rushing to vilify institutions without verified facts.

“The government can arrest anyone, anywhere. But let us not make noise without evidence. Let’s hear from them first.”

As tensions continue to mount and digital protests against GTBank gain momentum, Oba Solomon’s remarks serve as a rare voice of caution—reminding Nigerians that clarity, not chaos, should lead the conversation.

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