Fidelity Bank has proposed a final dividend of 35 kobo ordinary shares, a whopping 59.09 per cent more than 22 kobo paid in 2020
By Eugene Onyeji
These are good times for Nneka Onyeali-Ikpe, the Board of Directors and shareholders of Fidelity Bank Plc.
And the reason? Business was practically very good during the year just gone by. It was a year of keeping the word in the true sense of it, as nearly all the essential margins pointed upwards year on year.
With N35.5bn Profit After Tax (PAT) for the 2021 business year, shareholders of the bank should be smiling and thanking their new Managing Director, Nneka Onyeali-Ikpe, for pointing the chart upwards in her first year at Fidelity Bank Plc.
According to its audited financial result for the year ended 2021 released to the Nigeria exchange limited, Fidelity Bank recorded a growth of 33.5 per cent in its Profit After Tax from N26.7bn in 2020.
A closed examination of the results indicates that the bank grew gross earnings by 21.61 per cent to N250.8bn driven by a combination of 60.3 per cent growth in non-interest revenue and 15.17 per cent increase in interest and similar income.
The growth in non-interest revenue reflects the significant increase in customer transactions resulting in 84.9 per cent growth in trade income, 48.1 per cent in account maintenance charge, and 47.2 per cent increase in digital banking income.
Onyeali-Ikpe swelled deposits from customers by 19.17 per cent to N2.02trn last year from N1.69trn in 2020 while total loans and advances increased from N1.3trn to N1.6trn.
Onyeali-Ikpe also expanded the bank’s total asset base by 19.26 per cent from N2.7trn to N3.28trn, while its total liabilities rose to N2.9trn from N2.4trn.
Fidelity Bank has proposed a final dividend of 35 kobo ordinary shares, a whopping 59.09 per cent more than 22 kobo paid in 2020, subject to appropriate withholding tax.
Bearing any change at the AGM, the dividend will be paid on April 30, 2022 to shareholders whose names appear in the Register of Members as at the close of business on April 16, 2022.
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Commenting on the impressive performance, the bank’s Managing Director, Nneka Onyeali-Ikpe, in a statement said: “We closed the financial year with strong double-digit growth in profit and across key balance-sheet lines, which reflects the disciplined execution of our strategy and capacity to deliver superior returns to shareholders.
“Profit Before Tax grew by 35.7% to N38.1bn from N28.1bn in 2020 FY, which translates to an increase in RoAE to 12.5% from 10.5% in 2020 FY.”
“Digital Banking gained further traction driven by new initiatives in our retail business and the enhancement of existing digital banking products.
“We now have 56.0% of our customers enrolled on the mobile/internet banking products and 90.0% of total customer-induced transactions done on digital platforms with digital banking business contributing 27.6% to net fee income,” she said.