Fidelity Bank to Distribute 60 Kobo Dividend to Shareholders

The directors of Fidelity Bank have proposed a final dividend payout of 60 kobo per share for the 2023 financial year, representing a 20% increase from the previous year’s dividend of 50 kobo. This information was disclosed in the audited annual reports and financial statements for 2023, which were submitted to the Nigerian Exchange Limited on Monday.

As stated in the report, the board of directors, in accordance with Section 379 of the Companies and Allied Matters Act (CAMA) 2020, proposes a final dividend of N0.60k per share for 2023, compared to N0.50k per share in 2022. Combined with the interim dividend of N0.25k per share paid on September 22, 2023, the total dividend for 2023 amounts to N0.85k per Ordinary Share, to be sourced from the retained earnings account as of December 31, 2023.

According to the audited results, Fidelity Bank witnessed a significant increase in profit before income tax, rising by 131.49% to N124.26bn from N53.68bn in 2022. Similarly, profit after tax also experienced growth, reaching N99.45bn from N46.72bn. The bank emphasized its strong growth trajectory and the need for additional capital to further enhance profitability, expand domestically and internationally, and improve its digital capabilities.

During the financial year, Fidelity Bank acquired a wholly-owned subsidiary, Fidelity Bank UK Limited (formerly Union Bank UK Plc), for $50m. The purchase consideration resulted in a charge of $1.8m, reflecting the difference between the completion net asset value and the planned net asset value, as outlined in the Sales Purchase Agreement between the seller and Fidelity Bank Plc Nigeria. Additionally, it was noted that Mr. Hassan Imam, former Executive Director of North, retired from the board effective January 10, 2024, following his appointment as the managing director of Keystone Bank.