Shareholders of Fidelity Bank Plc  Tuesday approved a total of N6.08 billion dividend pay-out declared by the bank in its 2012 audited financial reports.

Speaking at the bank’s 25th Annual General Meeting in Abuja, the Managing Director/Chief Executive Officer, Fidelity Bank, Mr. Reginald Ihejiahi said the bank’s gross earnings in the period under review grew by 62.3 per cent to N119.4 billion from N73.6 billion the previous year, while its net interest and discount income also increased by 20.5 per cent to N36.8 billion from N30.6 billion in 2011.

He said the improved performance was as a result of prudent balance sheet management.

The Fidelity Bank boss said: “We are delighted with our 2012 result which shows a strong rise in profitability compared to 2011, particularly the momentum sustained in the growth in our non interest income, arising from aggressive business acquisition and the linkage effect of a well implemented branch development programme.

“We have remained focused in the prudent management of our balance sheet without compromising quality or safety, having made good progress in gathering stable and balanced funding base that enables us to continue to exploit the various opportunities that have continued to present themselves in the Nigeria economy.”

He added: “With so many opportunities available in infrastructure, power, oil and gas, production expansion, agriculture, small and medium scale enterprises financing, among others, the existence of increasing number of well-structured indigenous companies looking to expand market share, and the disciplined implementation of the Import-substitution Policy of the Federal Government, we are seeing increased business volumes and yields particularly from new businesses.

“ In 2013, we will remain focused on growing our balance sheet efficiently with particular emphasis on low cost deposits, strengthening the implementation of cost reduction measures and re-allocating resources to more profitable business segments, while we seek increased market share.”

Source: Thisday (by James Emejo)

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Fidelity Bank Plc has issued a $300m five-year Eurobond paying a 6.875 per cent coupon and priced at a discount to give a seven per cent yield.

Reuters quoted a senior official of Fidelity Bank, who declined to be named, as saying that the bond sale was completed on Thursday.

Citibank and Deutsche Bank were joint lead managers on the deal, a prospectus obtained by Reuters shows.

The Chief Executive Officer, Fidelity Bank Plc, Mr. Reginald Ihejiahi, said last month that the planned bond was part of a funding drive for projects with dollar financing needs, including  oil, power and infrastructure.

Foreign investor appetite for emerging market debt is soaring, as the hunt for yield amid rock-bottom interest rates in Western countries pushes bond buyers further a field.

Emerging market strategist at Standard Bank, Mr. Samir Gadio, said the issue price had been 99.48 per cent and that the bond gave a spread over US Treasuries of 635 basis points.

He added that fair value would have been between 6.5 per cent and 6.75 per cent yield, but said he expected the bond to perform well nonetheless, since the deal was not widely-marketed and the global environment remained one of low global rates and ample liquidity.

Source: The Punch.

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