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Fidelity Bank targets 6% growth

By The Citizen
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The Managing Director, Fidelity Bank Plc, Mr. Nnamdi Okonkwo, says the bank will achieve a target of six per cent net margin growth between now and 2016.

The bank said the plan would be anchored on its low-cost deposit and earning assets growth expectations.

Within the same period, the bank will be targeting an effective tax rate of between 15 and 20 per cent, while its loan growth would average 15 to 20 per cent per annum.

According to the bank, a 20 per cent average deposit growth will form part of its strategies to reclaim the future.

A statement by the bank quoted Okonkwo as saying, 'This will be strongly matched by an average growth of non-interest income to about 20 per cent per annum, indicating that a good rise in total income will be clearly anticipated.

'With an expected cost to income ratio of 60 to 65 per cent, the bank expects that growth in income lines are expected to outstrip increases in operating income which also means that a lot of reserves would have to be achieved or a proportional growth in revenue would be recorded.'

According to the CEO, the bank's current mandate to perform will be driven by the lender's superior manpower.

He explained, 'The proposal of having 20 per cent of our total branch network positioned in Lagos based on the huge resource base of Lagos can quickly advance our rapid retail banking gains. With the targets to position about 37 per cent of the branches to capture the oil and gas region and the Federal Capital Territory, the bank has put a strong road map in place for the actualisation of the drive for cheap funds.

'This will no doubt make the target to grow its retail banking accounts to three million very easy by 2014 year end, using 230 bank branches. What this retail banking positioning analysis means is that the bank will be much more visible and closer to the medium income populace who need banks as avenues to induce domestic savings.

Okonkwo said the bank was committed to becoming the Small and Medium Scale Enterprises bank of choice at a time the economy has witnessed failed promises from finance houses.

He said the lender was targeting manufacturing enterprises, education, leisure/tourism/hotels, health care, agriculture and fast food shops as immediate beneficiaries. Agency reportĀ