Fidelity Bank records zero default SME loans, interest income buoyed 29%

Fidelity Bank plc has recorded no default on loans given to Small and Medium Enterprises (SMEs) from the N220 billion Micro Small and Medium Enterprise Development (MSMED) fund of the Central Bank of Nigeria (CBN).

Nnamdi Okonkwo, the managing director and CEO, disclosed this during the Fidelity SME Forum he anchored at the Inspiration 92.3 FM which featured Nollywood Actress and Founder of You and I with Monalisa Television show, Monalisa Chinda.

The bank has given out N2.2 billion from the fund. “We’ve got repayment of N400 million; we haven’t had default because of the process through which these funds were accessed”, Okonkwo said.

Reacting to a caller’s concern on the feasibility of accessing the fund by the likes of Aba shoe makers, Okonkwo said that the bank was a witness to it and that it had got customers who accessed the fund through it.

Explaining further he said, “Because the CBN cannot go to Aba to lend money to them, that’s why they need banks like Fidelity, and our teams spent about two weeks there. We haven’t abandoned those people; instead we planted a branch there and we are even lending to more and more of these customers”.

“I just want to encourage people even though sometimes government may not have met with all our expectations, but let us also realize that some good things are happening and take advantage of them”, he added.

Fidelity Bank Plc had recorded a solid financial performance in the first quarter of 2017, posting growth in profits and gross earnings for the period ended March 31, 2017, despite challenging and fiercely competitive business environment.

According to unaudited results released at The Nigerian Stock Exchange, the lender grew gross earnings by 18.8% from N34.4bn in 2016 to N40.8bn for the corresponding period at March 31, 2017 as period profits surged 21% from N4bn in 2016 to N4.8bn in 2017. Fidelity similarly recorded growth in net interest income, deposits, loans and other performance indices.

The lender benefited from loans to its customers, having seen 29 per cent boost in interest income from loans and advances to N26 billion.

The bank has consistently rewarded its shareholders with dividend payment in the last 5 years, paying 14 kobo to shareholders for each share held. Fidelity bank rose 3 per cent last week to 85 kobo as at the close of trading on Friday, May 5, 2017.

HOPE MOSES-ASHIKE