Mr. Nnamdi Okonkwo, the Managing Director/Chief Executive Officer, Fidelity bank revealed the bank’s plans to increase its lending to small and medium scale enterprises (SMEs) also to the retail segment from 28% which it attained in 2013 to 50% by 2017.
In a report that did a review of the bank’s performance in 2013 and plans for the future, the management of Fidelity Bank acknowledged the challenges in the industry and assured stakeholders that its initial focus would be on reducing funding costs by continuous downward re-pricing of costly term deposits; increase the proportion of its members of staff in market-facing roles while rewarding them appropriately; and increase branch footprint to increase market reach. The bank also indicated plans to also significantly increase its focus on driving e-banking products for customer mobilization and service. The bank may also undertake a merger and acquisition deal for the right target and price.
Renaissance Capital (RenCap), a Lagos-based financial advisory and research firm in a report titled, “New CEO: It’s all about execution” which was obtained yesterday, quoted Okonkwo who said that the bank has been positioned to be an SME-focused bank. Beyond reviewing the Bank’s 2013 performance, he also presented his strategic plan for the bank going forward.
RenCap explained that Okonkwo was emphatic about his plans to run an open and communicative management style, partly driven by frequent investor calls going forward.
“We think this is particularly important for Fidelity to reawaken investor interest in the story and showcase the impact of multiple changes currently being implemented. In addition to this, 2013 saw the bank’s exposure to foreign currency lending rise to 27 per cent from one in 2012, as the bank deployed its foreign currency liabilities while the pressure on funding costs persisted. Management has also been re-pricing the existing loan book and plans to periodically review all concessions and lending rates. On the back of yesterday’s call and our extensive discussions with the new CEO and Head of Strategy, Innovation and Business Transformation, Gbolahan Joshua, it appears to us that things are set to change at Fidelity,” RenCap added.
However, RenCap advised the bank to ensure that it delivers consistently on targets by matching action with numbers; create shareholder value by getting the RoE up to the high double digits in the medium term; and improve the quality of reporting and investor communication.
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This article was first published on 17th April 2014
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Mr. Nnamdi Okonkwo, the Managing Director/Chief Executive Officer, Fidelity bank revealed the bank’s plans to increase its lending to small and medium scale enterprises (SMEs) also to the retail segment from 28% which it attained in 2013 to 50% by 2017.
In a report that did a review of the bank’s performance in 2013 and plans for the future, the management of Fidelity Bank acknowledged the challenges in the industry and assured stakeholders that its initial focus would be on reducing funding costs by continuous downward re-pricing of costly term deposits; increase the proportion of its members of staff in market-facing roles while rewarding them appropriately; and increase branch footprint to increase market reach. The bank also indicated plans to also significantly increase its focus on driving e-banking products for customer mobilization and service. The bank may also undertake a merger and acquisition deal for the right target and price.
Renaissance Capital (RenCap), a Lagos-based financial advisory and research firm in a report titled, “New CEO: It’s all about execution” which was obtained yesterday, quoted Okonkwo who said that the bank has been positioned to be an SME-focused bank. Beyond reviewing the Bank’s 2013 performance, he also presented his strategic plan for the bank going forward.
RenCap explained that Okonkwo was emphatic about his plans to run an open and communicative management style, partly driven by frequent investor calls going forward.
“We think this is particularly important for Fidelity to reawaken investor interest in the story and showcase the impact of multiple changes currently being implemented. In addition to this, 2013 saw the bank’s exposure to foreign currency lending rise to 27 per cent from one in 2012, as the bank deployed its foreign currency liabilities while the pressure on funding costs persisted. Management has also been re-pricing the existing loan book and plans to periodically review all concessions and lending rates. On the back of yesterday’s call and our extensive discussions with the new CEO and Head of Strategy, Innovation and Business Transformation, Gbolahan Joshua, it appears to us that things are set to change at Fidelity,” RenCap added.
However, RenCap advised the bank to ensure that it delivers consistently on targets by matching action with numbers; create shareholder value by getting the RoE up to the high double digits in the medium term; and improve the quality of reporting and investor communication.
