Fidelity Bank sees 2015 pretax profit of N23.5 bln

Nigeria’s Fidelity Bank expects pretax profit this year to reach 23.5 billion naira from 16.5 billion naira a year ago, the mid-tier lender said in a prospectus which it used to raise a 30 billion naira bond.

Fidelity Bank expects loan growth to hover between 15-20 percent from 2013-2015, driven by existing and new facilities made to power, agriculture, oil and gas sectors, it said.

Planet Capital Limited, a leading player in the Nigerian capital market led other capital market operators in the issuance of Fidelity Bank Plc N30,000,000,000 Bond. The bond qualifies as a security that Pension Fund Administrators and Trustees can invest in and is also tax exempt which makes it even more attractive. It will be listed on the Nigerian Stock Exchange and freely tradable.

The Chairman of the Bank, Chief (Dr.) Christopher Ezeh explained that the Issue would increase the Bank’s Tier II capital, improve capital adequacy and support the Bank’s SME lending and retail infrastructure.

According to the Managing Director of the Bank, Nnamdi Okonkwo, the Bank will be injecting a significant portion of the proceeds to the Small and Medium Enterprises (SMEs) noting that the initiative is part of Fidelity Bank’s efforts at deepening the SME sector which is the engine room of Nigeria’s economy. He explained that the bank is targeting a loan book growth rate of about 10 per cent in 2015, with most of the loan facility targeted at SMEs.

Explaining further, he said that about 471,000 retail customers were added to the Bank last year, noting that with additional capital the bank is in a better position to enhance its earnings profile for sustainable growth.

A Co-CEO and Managing Director of Strategic Advisory Group, Planet Capital Limited, Tony Anonyai, commended the Bank for the initiative they have taken towards growing the Bank’s capital in support of their lending role and towards meeting regulatory requirements.

He observed that “since the funds would be applied to SMEs, Fidelity Bank is helping in the entrepreneurial development of Nigerians”. He stressed that with the strong risk management profile of the bank as evidenced in the Bank’s 2014 Audited Financials, there is no doubt the new capital will be properly deployed and the downside of lending to SMEs well managed.