Fidelity Bank Plc has proposed a final dividend of N1.25kobo per share (December 31, 2023: 85kobo per share) for the 2024 financial year.
The proposed final dividend of N1.25kobo per share and interim dividend of N0.85kobo per share paid on October 15, 2024, brings the total dividend for financial year 2024 to N2.10kobo per ordinary share to be paid from the retained earnings account as at December 31, 2024.
Fidelity Bank Plc recently released its audited annual reports and financial statements for the year ended December 31, 2024.
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The group’s gross earnings rose by 87.7 percent to N1.043trillion in 2024 from N555.830 billion in 2023.
The Group’s profit before income and windfall taxes (PBT) rose by 210 percent to N385.215billion from N124.260billion in 2023. Also, the Group’s profit after tax (PAT) rose by 179.5 percent to N278.106billion in 2024, from N99.454billion in 2023. Loans and advances to customers increased to N4.387trillion from N3.092trillion in 2023. The group grew its deposits from customers to N5.937trillion from N4.014trillion in 2023 financial year.
CardinalStone analysts in their April 2 earning update said, “Fidelity Bank Plc (Target Price: N18.91) delivered an impressive triple-digit bottom-line growth in its audited FY’24 results. Profit Before Tax (PBT) surged by 210 percent year-on-year (YoY) to N385.2 billion, while Profit After Tax (PAT) increased by 179.6 percent YoY to N278.1 billion. The robust performance was driven by a 106.9percent YoY increase in interest income, which contributed approximately 91.0 percent of the bank’s gross earnings (N1.04 trillion), alongside improved non-interest revenue (NIR)”.
“Fidelity Bank benefited from a robust interest-earning asset (IEA) base of N4.97 trillion and an asset yield of 17.6 percent to generate an interest income of N950.6 billion.
“The bank effectively repriced its assets in line with the prevailing interest rate environment, with interest income from loans & advances to customers growing by 72.4 percent YoY and accounting for 78 percent of total interest income.
“With the growth in interest income significantly outpacing the 76.1 percent uptick in interest expense, Net interest income (NII) came in stronger, reaching N629.8 billion (+127.1% YoY). Consequently, net interest margin (NIM) expanded by 2.6 percentage points (ppts) to 10.5 percent in the period.
“However, NIR recorded a relatively modest growth of 31.2 percent YoY to reach N143.4 billion, primarily driven by a net fee & commission income of N70.3 billion (+86.1 percent YoY). Collectively, Fidelity Bank’s operating income rose by 100 percent YoY to print at N773.1 billion,” CardinalStone analysts further noted.
“With a robust operating income, the cost-to-income ratio (CIR) moderated to 42.9 percent (from 50.4 percent in FY’23), masking the impact of the 70 percent surge in operating expenses. Elsewhere, impairments were lower at N56.4 billion (-16.3 percent YoY), while NPLs improved to 2.5 percent (versus 2.9 percent in FY’23), highlighting the bank’s healthy asset quality,” the analysts added.
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The Group’s earnings per share (basic and diluted) rose to 665 kobo in 2024 from 194kobo in 2023. The register of Fidelity Bank shareholders will be closed on April 16, 2025. Qualification date for the proposed dividend is on April 15, 2025.
On April 29, 2025, the dividends will be paid electronically to shareholders whose names appear on the Register of Members as at April 15, 2025.
The bank said in its corporate action announcement that the dividend will be paid to shareholders who have completed the e-dividend registration mandating the Registrar to pay their dividends directly into their bank accounts.
The proposed dividend will be presented for shareholders’ approval at the bank’s 37th Annual General Meeting (AGM) on April 29.
