Fidelity Bank shareholders approve N19.2 billion final dividend in 2023.

Fidelity Bank shareholders approve N19.2 billion final dividend in 2023.

Shareholders of Fidelity Bank Plc have endorsed the recommendation of the board of directors for a final dividend of N19.2 billion for the financial year 2023.

The shareholders gave the approval at the company’s 36th Annual General Meeting (AGM) held virtually on Thursday.

The dividend, which was ratified at the AGM, amounts to N.60 kobo per share for the company’s shareholders.

The final dividend brings the total dividend for the review period to N.85 kobo per share, amounting to N27.2 billion.

The directors had approved and paid an interim dividend of 25 kobo per ordinary share of 50 kobo each on 32,000,000,000 shares, amounting to N8 billion for the half-year period ended June 30, 2023. Withholding tax was deducted at the time of payment.

What the bank said
The Chairman of Fidelity Bank Plc, Mr. Mustafa Chike-Obi, addressing shareholders at the AGM, noted that the bank has transitioned from a modest player in the Nigerian finance industry to a prominent and respected brand, proving its resilience and growth potential.

Chike-Obi said that the bank’s story is a testament to the power of a well-crafted strategy

He said the bank consistently surpassed industry benchmarks on crucial metrics such as deposit size, risk assets creation, and profit before tax (PBT), demonstrating its ability to deliver exceptional results.

“Our deposits increased by an impressive 56% in the review period, from N2.6 trillion in 2022 FY to N4.0 trillion. Advances to customers rose by 46% from N2.1 trillion in 2022 FY to N3.1 trillion, while Total Assets grew by 56% from N3.9 trillion in 2022 FY to N6.2 trillion.

In the 2022 financial year, we attained a significant milestone by reporting a PBT of N53.6billion.

We grew that figure by 131.5% in the review period to close at N124.3billion. Our business attained an important landmark, exceeding the N100 billion PBT mark for the first time in our history. We are excited about the future and the opportunities in our market,” he said.

MD/CEO of Fidelity Bank. Mrs. Nneka Onyeali-Ikpe said that in line with the bank’s commitment to the growth and development of the Nigerian non-oil export and agribusiness sectors, it developed initiatives to provide market access to practitioners in the agric value chain.

Onyeali-Ikpe noted that one of the bank’s major strategic aspirations is to diversify its income base by expanding service franchises beyond the shores of Nigeria.

She said that in July 2023, following regulatory approval from the Prudential Regulation Authority (PRA) in the United Kingdom and the Central Bank of Nigeria (CBN), the bank completed the purchase of the former Union Bank UK Plc, adding that the institution was renamed FidBank UK Limited in February 2024.

Shareholders’ position
Commenting on the Company’s performance, the National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), Mr. Boniface Okezie, commended the dividend paid to shareholders.

He stated that the 2023 performance was a significant improvement on the previous year against the background of headwinds such as high energy costs, soaring inflation rate, and exchange rate in the country.

National Co-Ordinator of the Pragmatic Shareholders Association, Mrs. Adebisi Bakare, said the performance of the bank was commendable, especially considering the challenges of economic headwinds in the country.