Dipo Olowookere
By Dipo Olowookere
Shareholders of Fidelity Bank Plc will have something to savour this year as the board of the lender has proposed the payment of 35 kobo as a dividend for the 2021 financial year.
The bank confirmed this in its financial statements for the year ended December 31 filed to the Nigerian Exchange (NGX) Limited.
The cash reward is for investors on the company’s register of members at the close of business on May 5, 2022, and is subject to the approval of the shareholders at the Annual General Meeting (AGM).
“In respect of the 2021 financial year, the board of directors recommend a dividend of 35 kobo per ordinary share of 50 kobo each amounting to N10,136,904,992.20 for approval at the 34th Annual General Meeting.
“If approved, dividend will be paid to shareholders whose names appear on the register of members at the close of business on May 5, 2022. The proposed dividend is subject to withholding tax at the applicable tax rate,” a part of the results said.
Business Post reports that Fidelity Bank is paying this dividend amid an increase in its profits as the pre-tax profit rose to N38.1 billion from N28.1 billion, while the post-tax profit grew by 33.3 per cent to N35.6 billion from N26.7 billion, with the earnings per share (EPS) rising by N1.23 from 92 kobo.
In the year under review, the lender increased its gross earnings to N250.8 billion from N206.2 billion as the net interest income dropped to N94.9 billion from N104.1 billion due to a higher interest expense of N108.7 billion versus N72.6 billion in the 2020 accounting year.
However, fee and commission income increased in the year to N29.4 billion from N19.9 billion, the fee and commission expense rose to N8.6 billion from N6.1 billion, other operating income jumped to N17.8 billion from N9.6 billion, while personnel costs reduced to N23.5 billion from N25.4 billion, with other operating costs increasing marginally to N52.8 billion from N52.1 billion.
