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Fidelity Bank Profit Before Tax Increases by 53.03% in Q1

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Fidelity Bank Profit Before Tax Increases by 53.03% in Q1

Fidelity Bank Plc has announced a profit before tax of N10.1 billion for the first quarter (Q1) ended March 31, 2021.

Managing Direcror/Chief Executive Officer of the bank, Mrs Nneka Onyeali-Ikpe, made this disclosure in an unaudited financial results sent to the Nigerian Exchange Ltd., on Wednesday in Lagos.

According to Onyeali-Ikpe, profit before tax rose by 53.03 per cent to N10.1 billion from N6.6 billion posted in the comparative period of 2020.

Similarly, net revenue in the period increased by 13.4 per cent to N34.4 billion from N30.3 billion in Q1 2020.

The bank’s gross earnings increased by 7.7 per cent year-o-year to N55.1 billion on account of 66.7 per cent growth in non-interest revenue to N12.1billion from N7.2 billion in Q1 2020.

Commenting on the performance, Onyeali-Ikpe said the bank showed impressive double-digit growth in profitability.

“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.

“In absolute terms, the increase in nominal interest rate came from foreign exchange related income, digital banking income and account maintenance charge among others.

“Net interest margin remained unchanged at 6.3 per cent compared to 2020 full year as the drop in average funding cost offset the decline in average yields on earning assets,” she said.

READ ALSO: Fidelity Bank Gets First Female MD/CEO

According to her, average funding cost dropped to 2.5 per cent from 3.6 per cent in 2020 due to a combination of improved deposit mix and a slight moderation in average borrowing cost.

“This led to 26.2 per cent decline in total interest expenses, which translated to 17.1 per cent increase in net interest income to N28.8bn despite a 4.3 per cent increase in interest bearing liabilities.

“We refinanced our seven-year N30 billion Tier II bonds issued in 2015 at 16.48 per cent p.a. with cheaper 10-year N41.2 billion tier II bonds priced at 8.5 per cent p.a., which led to a 61bpts drop in average borrowing cost to 4.5 per cent,” she added.

Onyeali-Ikpe said that operating expenses increased by N1.3 billion (6.2 per cent) to N23 billion largely driven by N4.3 billion growth in regulatory charges.

Excluding the increase in regulatory charges, total operating expenses would have dropped by 13.8 per cent to N18.6 billion from N21.6 billion in Q1 2020,” she said.

READ ALSO: Nigeria: End of an Era As Fidelity Bank MD Prepares for Retirement

Onyeali-Ikpe also explained that retail banking continued to deliver impressive results for the bank as savings deposits increased by 4.1 per cent year-to-date to N441.6 billion.

“We are on course to achieving the ninth consecutive year of double-digit growth in savings deposits.

“Savings deposits was responsible for 32.9 per cent of the absolute growth in total deposits and now accounts for 25.2 per cent of total deposits compared to 25.0 per cent in 2020.

“Other regulatory ratios remained above the required thresholds with liquidity ratio at 33.9 per cent and capital adequacy ratio at 18.4 per cent from 18.2 per cent in 2020.

“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,” she said.

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Dangote’s $2 billion Urea Fertilizer Plant Pushes Out 120 Trucks Everyday

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Dangote's $2 billion Urea Fertilizer Plant Pushes Out 120 Trucks Everyday

After months of speculations, Dangote Urea fertilizer is now finally on sales nationwide and it currently pushes out a minimum of 120 trucks per day across the country.

 

Group Executive Director, (Strategy, Capital Projects & Portfolio Development) · Dangote Industries Limited,  Devakumar  Edwin, revealed to the press over the weekend that the Plant which has the capacity to turn out more than 4,500 tonnes of urea per day will conveniently meet the local demand and even produce for exports.

 

According to him: “…We have the capacity to turn out 4,500 tonnes of Urea everyday…this is a bulk application fertilizer…each crop in Nigeria or globally will require Nitrogen and this is a rich fertilizer, having 46 per cent nitrogen…The company has the capacity to meet local demand and also export to African countries… Currently the demand is less than 1 million tonnes and we alone can  produce 3 million tonnes, so we can easily meet local demand and also produce for export to other west African countries.”

READ ALSO: Dangote Fertiliser Commences Production Of Urea

Aside fertilizer production, the company, according to Edwin is already working to support the farmers with training on application of the fertilizer and even establish laboratories across the country for proper soil examination.

 

“The uniqueness of this plant, apart from the fact that we are producing is the focus on farmers’ support, on training, education, development as we are now establishing laboratories across the country and even mobile laboratories where we can go drive around and take soil samples for proper examination to effectively grow the agricultural outputs across the country”

 

The Urea Fertilizer plant was built to tap into Nigeria’s demand for fertilizer, a critical component of achieving food sufficiency for Africa’s most populous country.

The Fertilizer plant is expected to manufacture 3 million metric tonnes of urea per annum, with a view to reducing the nation’s fertilizer imports, and generating $400m annual foreign exchange from export to Africa countries.

 READ ALSO: Nigeria on The Way to Becoming Regional Fertilizer Capital – Buhari

Meanwhile, marketers and farmers in Kano have described the newly introduced Dangote Fertilizer as a game-changer and a forecast for the expected agricultural revolution in the country.

Marketers and farmers who were apparently excited, over the weekend welcomed the more than ten trucks that entered Kano markets at the weekend.

Speaking at the event organized by Dan Hydro Company in Kano to mark the introduction of the fertilizer into the northern market, chairman of the Kano state Agro Dealers Association Alhaji Shuaibu Akarami said agro-dealers have confidence in Dangote fertilizer as they have in all his products, adding that as a dealer who spent decades in the business he has discovered that Dangote fertilizer will have no problem penetrating the market in the North.

“I have checked the product and have found out that it will have no problem penetrating the market. With my experience in agro products, I can authoritatively say the product has met our expectations and that has confirmed the confidence we have in Dangote fertilizer and other sister products of the Dangote Group,” he said.

The Dan-Hydro fertilizer Company in Kano which took delivery of the first batch of trucks in Kano said the timing and strategy for the introduction are rife.

Head of operations, Dan- Hydro operations Mr. Hamadi Sekou Drammeh said the Dangote fertilizer conforms to all set standard required by the regulatory agencies.

He said the phenomenon of perennial shortage of the fertilizer product will be over in the country.

He said as part of its public enlightenment plan, the company was going to work with all stakeholders in the agricultural sectors.

In the same vein, Sales Manager of Dan Hydro Mr. Sulaiman Tanko assured that the product will be sold at a reasonable price that will enable fair competition in the market. 

 

 

 

 

 

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NGX Limited Launches Enhanced Brokers Performance Ranking Report

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NGX Limited Launches Enhanced Brokers Performance Ranking Report

Nigerian Exchange Limited (NGX) has launched an enhanced broker performance ranking report designed to provide detailed insight into the performance of Trading License Holders across asset classes and improve participation in other exchange products. The new ranking report was launched on Thursday, 10 June 2021, via a webinar themed, “The New Broker Performance Ranking: An Analytics Approach”.

The new Broker Performance Report, which shows the performance of Brokers ranked by the weighted calculated points in deals, volume, and value across all asset classes, comes in three different levels, distinguished by fields to be displayed.

READ ALSO: NGX Group launches new brand identity and website

In his opening remarks, the Divisional Head, Trading Business, NGX, Mr. Jude Chiemeka, noted that;

Today’s traditional asset managers and stockbrokers find themselves increasingly pressured by demands to monitor and measure their activities in all asset classes (Equity, Debt, ETFs), as the regulator and operating environment require better tracking, monitoring, and reporting of market activities. At NGX, we came up with the new Broker Performance Ranking report as one of the solutions to this challenge”. 

“The new Broker Performance Ranking adopts an analytical approach in determining the total ranking of the brokers. It shows the performance of brokers (Volume, Value and Deals) in different asset classes (Equity, Bond and ETPs) and ranks brokers by weighted average performance across all asset class. Thereby providing a level playing field and fair recognition for active market participants”, Mr. Chiemeka added.

Through frequent communications across its touchpoints and engagements such as this webinar, NGX is working tirelessly to ensure that Trading License Holders and other stakeholders are empowered with information to deliver more values

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TotalEnergies: 50% Gas Energy Mix To Be Achieved By 2030

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TotalEnergies: 50% Gas Energy Mix To Be Achieved By 2030

Mr. George Oguachuba, Executive Director  Commercial, and Strategy, TotalEnergies says the company targets a 50 percent gas energy mix by 2030.

Oguachuba made this known at a panel discussion at the 4th Nigeria International Petroleum Summit in Abuja on Thursday.

READ ALSO: The African Energy Chamber’s Investment Committee commits to facilitate investments worth

”As a company and a business,  the strategy is to become more and more as a company and our target is that by 2030 we should have about 50 percent gas energy mix in TotalEnergies.

”And this coincides with Nigeria government as it announced Decade of gas, saying that gas will play a significant role in the country’s economy,” he said

He said that the company had started monetization of gas resources to put in infrastructure for the delivery of gas to end-users.

He added that they are also putting up pipelines for the delivery of gas to the domestic action.

“We have another option which is 300 million gas pipeline dedicated for supply for domestic gas obligations with government and we have signed three contracts on it.

He noted that the company was faced with challenges of appropriate price, how to make sure that gas gets to end-users,  among others

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