Fidelity Bank Shareholders Approve N19.2 Billion Final Dividend for 2023

Fidelity Bank Shareholders Approve N19.2 Billion Final Dividend for 2023

Fidelity Bank Plc shareholders approved the board of directors’ proposal for a final dividend of N19.2 billion for the fiscal year 2023 at the company’s 36th Annual General Meeting (AGM), which was held virtually on Thursday.

The approved dividend translates to N.60 kobo per share for the company’s shareholders. This final dividend, now ratified at the AGM, contributes to a total dividend of N.85 kobo per share for the review period, totaling N27.2 billion.

Earlier in the financial year, the directors had greenlit and disbursed 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 ending June 30, 2023. Withholding tax was duly deducted at the time of payment.

Insights from Fidelity Bank Leadership

Addressing the shareholders at the AGM, the Chairman of Fidelity Bank Plc, Mr. Mustafa Chike-Obi, emphasized the bank’s transformation from a modest player in the Nigerian financial landscape to a significant and esteemed brand, showcasing its resilience and growth potential. Chike-Obi attributed this success to a well-crafted strategy that has propelled the bank beyond industry benchmarks in critical metrics such as deposit size, risk assets creation, and profit before tax (PBT).

He highlighted key achievements, including a remarkable 56% surge in deposits, a 46% increase in advances to customers, and a 56% growth in Total Assets. Notably, the bank reported a PBT of N53.6 billion in the 2022 financial year, a figure that soared by 131.5% to N124.3 billion in the review period. This marked a significant milestone as the bank crossed the N100 billion PBT threshold for the first time in its history, signaling a promising future ahead.

Strategic Vision and Expansion Initiatives

The Managing Director/CEO of Fidelity Bank, Mrs. Nneka Onyeali-Ikpe, reiterated the institution’s commitment to fostering growth in the Nigerian non-oil export and agribusiness sectors. She outlined initiatives aimed at providing market access to stakeholders in the agricultural value chain and emphasized the bank’s strategic goal of diversifying its income streams by extending service offerings beyond Nigeria’s borders.

In a strategic move to broaden its global footprint, Fidelity Bank acquired the former Union Bank UK Plc, subsequently rebranding it as FidBank UK Limited in February 2024 following regulatory approvals from the Prudential Regulation Authority (PRA) in the United Kingdom and the Central Bank of Nigeria (CBN).

Shareholders’ Perspectives

Mr. Boniface Okezie, the National Coordinator of the Progressive Shareholders Association of Nigeria (PSAN), lauded the dividend payout to shareholders, citing the 2023 performance as a notable improvement amid challenges such as high energy costs, escalating inflation rates, and currency fluctuations in the country.

Similarly, Mrs. Adebisi Bakare, the National Co-Ordinator of the Pragmatic Shareholders Association, praised the bank’s commendable performance, especially in light of the prevailing economic headwinds in the country.

In conclusion, Fidelity Bank’s robust financial performance, strategic foresight, and commitment to shareholder value underscore its position as a key player in the Nigerian banking sector. The approval of the N19.2 billion final dividend for 2023 further solidifies the bank’s reputation for delivering exceptional results and driving sustainable growth in a challenging economic landscape.