Fidelity Bank Plc Proposes 60 Kobo per Share for 2023 FY

For the 2023 fiscal year, Fidelity Bank's directors have proposed paying shareholders a final dividend of 60 kobo per share. This represents a 20% increase over the dividend payment of 50 kobo last year.

This announcement was revealed in its audited annual reports and financial statements for 2023, which were filed with the Nigerian Exchange Limited on Monday.

Part of the report read, "The board of directors of the group, pursuant to the provisions of Section 379 of the Companies and Allied Matters Act (CAMA) 2020, proposes a final dividend of N0.60k per share (December 31 2022: N0.50k per share) for the 2023 financial year.

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"The proposed final dividend of N0.60k per share and interim dividend of N0.25k per share paid on September 22, 2023, brings the total dividend for 2023 to N0.85k per Ordinary Share to be paid from the retained earnings account as of December 31, 2023."

The audited results show that Fidelity Bank earned N124.26 billion in profit before income tax in 2022, an increase of 131.49 percent compared to 2022's N53.68 billion. Likewise, profit after tax increased from N46.72 billion to N99.45 billion.

The bank said it was "On a strong growth trajectory and required additional capital for increased profitability, expansion (domestic and international)," and enhancement of its digital capabilities.

"During the financial year, the bank acquired a wholly owned subsidiary, Fidelity Bank UK Limited (former Union Bank UK Plc) at "a value of $50m with a charge of the gap between the completion net asset value and the planned net asset value on the purchase consideration, which has now been completed in the sum of $1.8 million based on the Sales Purchase Agreement between the seller and Fidelity Bank Plc Nigeria."

It also stated that Mr. Hassan Imam, a former executive director of North, retired from the board on January 10, 2024, in accordance with his appointment as managing director of Keystone Bank.

Fidelity Bank Plc 2023 FY Audited Financial Statements

The 2023 full-year Audited Financial Statements from Fidelity Bank Plc show a 131.5% increase in Profit Before Tax, or N124.26 billion.

According to the results released to the Nigerian Exchange (NGX), the bank's Gross Earnings increased by 64.9% year over year (YoY) to N555.83 billion. This growth was primarily driven by an 81.6% increase in Net Interest Income, from N152.7 billion to N277.37 billion. This led to a Profit After Tax of N99.45 billion, representing a 112.9% annual growth rate.

According to an analysis of the bank's financial performance, net interest income increased by 81.6% to N277.4 billion, driven primarily by a 55.5% increase in interest income. This indicates that the asset yield has been rising steadily over the year. Net Interest Margin (NIM) increased from 6.3% in 2022 FY to 8.1% in 2023 FY due to lower funding costs and higher asset yield. The net interest margin (NIM) increased to 8.1% from 6.3% in the 2022 fiscal year due to lower funding costs and higher asset yield.

Fidelity Bank's Total Customer Deposits increased from N2.6 trillion in 2022 FY to N4 trillion, a 55.6 percent growth. While the main driver of the increase was an 81.1% growth in low-cost funds.