Profit as Fidelity Bank shareholders to get 60 kobo dividend

The directors of Fidelity Bank have proposed a final dividend payout of 60 kobo per share to shareholders for the 2023 financial year.

This is a 20 per cent increase from last year’s dividend, which was 50 kobo.

This was revealed in its audited annual reports and financial statements for 2023 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 (31 December 2022: N0.50k per share) for the 2023 financial year.

“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.”

According to the audited results, Fidelity Bank’s profit before income tax rose by 131.49 per cent to N124.26bn from N53.68bn in 2022. Similarly, profit after tax also went up to N99.45bn from N46.72bn.

The bank said it was “On a strong growth trajectory and requires 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 $1.8m based on the Sales Purchase Agreement between the seller and Fidelity Bank Plc Nigeria.”

It added that a former Executive Director of North, Mr Hassan Imam, retired from the board with effect from January 10, 2024, following his appointment as the managing director of Keystone Bank.