Fidelity Bank proposes a 22 kobo dividend per share
Fidelity Bank plc has demonstrated resilience and stability as it announced a strong Profit Before Tax (PBT) of N28.05 billion for the financial year ended December 31, 2020.
The audited result which was announced on the Nigerian Stock Exchange (NSE) website showed strong growth in Core Operating Profits, Net Revenue, and other key financial indices.
The bank posted a 50.9 percent growth in Core Operating Profits from N29.8 billion in 2019 FY to N44.9 billion.
Net Revenue increased by 15.0 percent from N111.8 billion in 2019 full year.
Customer Deposit, which is a measure of consumer confidence rose by 38.7 percent from N1, 225.2 billion to N1, 699.0 billion.
Assets grew by 30.5 percent from N2.11 trillion in 2019 full year to N2.75 trillion in 2020.
Profit Before Tax dropped marginally by 7.6 percent to N28.1 billion from N30.4 billion in 2019 full year.
Encouraged by the healthy results, the Board of Fidelity Bank is proposing a N6.4 billion payout, which translated to 22 kobo dividend per share to its shareholders.
REACTION FROM THE BANK CEO
The Chief Executive Officer (CEO), Fidelity Bank, Nneka Onyeali-Ikpe said “We are pleased with our financial performance, which clearly showed the resilience of our business model as core operating profit increased by 50.9 percent to N44.9 billion from N29.8 billion in 2019 full year.
We also saw a significant improvement in our efficiency indices as the cost-to-income ratio moderated downward to 65.1 percent from 73.4 percent in 2019FY. However, Profit before Tax (PBT) dropped by 7.6 percent to N28.1 billion as we proactively increased our provisions on risk assets to N16.9 billion from a net write-back of N0.6 billion in 2019FY.
The bank “took a conservative stance in recognition of the impact of the global pandemic, which has redefined business risks and opportunities in the new normal”.
The bank’s digital retail banking approach has continued to yield positive results. Though Digital Banking income dropped by 18.8 percent due to the revised banker’s tariff, it increased by 19.6 percent QoQ on account of increased customer adoption as more services were migrated to the bank’s digital channels.