Fidelity Bank pays N4.6bn dividend to shareholders

The shareholders of Fidelity Bank Plc have approved the N4.6bn dividend payout proposed by the bank.

The bank, therefore, is paying 16 kobo per ordinary share dividend to shareholders whose names appeared on the bank’s register of members as at the close of business on April 18 to 22, 2016.

The Board of Directors of the bank had earlier proposed the payout for the financial year ended December 31, 2015.

The 16 kobo dividend per ordinary share of 50 kobo each is subject to withholding tax at the appropriate tax rate, which will be deducted before payment.

The bank added that it had maintained a tradition of consistent dividend payout in the past 10 years.

Speaking at the lender’s Annual General Meeting held in Lagos, the Acting Managing Director/Chief Executive Officer, Fidelity Bank Plc, Mr. Mohammed Balarabe, said that the bank’s 2015 performance reflected the disciplined execution of the management’s medium-term strategy and the resilience of evolving business models despite the extremely challenging business environment in the year.

Its financial results showed that gross earnings for the period ended December 31, 2015 grew to N146.9bn from N136.1bn recorded in 2014 financial year.

Profit after tax for the period rose marginally to N13.9bn as against N13.8bn made in the comparable period last year. Whereas total equity increased by 6.0 per cent to N183.5bn from N173.1bn in 2014, net operating income stood at N83.9bn, a moderate 12.5 per cent rise from N74.6bn in 2014.

Balarabe pointed out that the financial year under review was challenging due to a number of factors; the difficult operating environment, the tight monetary stance of the Central Bank of Nigeria, implementation of the Treasury Single Account and currency devaluation concerns which culminated in negative earnings headwinds in the banking industry.

Even with the prevalent economic conditions, he said the performance of the bank showed resilience to these challenges, adding that, “We are able to achieve this through a sustained income stream built on qualitative services, innovative products and a clear understanding of the varying needs of our customers.”

Profit after tax for the period ended December 31, 2015 rose marginally to N13.9bn as against N13.8bn made in the comparable period last year.

Earlier, the Chairman of the bank, Chief Christopher Ezeh, had in his opening remark, noted the bank performed relatively well in spite of the economic whirlwind occasioned by the free fall in the global oil prices and attendant capital controls of the CBN.

Ezeh said the tough business environment reflected more on the fees and commission income of the bank, which dropped by 20.8 per cent to N23.3bn from N29.4bn due to regulatory restrictions on foreign exchange transactions.