Fidelity Bank Plc has proposed a final dividend of N1.159 billion, representing 40 kobo per share to its shareholders for the year ended December 31, 2022.
The bank’s audited financial statements released on the Nigerian Exchange Limited showed a 34.4 per cent growth in gross earnings year-on-year (YoY) to N337.1 billion, driven by 45.2 per cent growth in interest and similar income to N295.6 billion.
The increase in interest income was led by a combination of improved yield on earning assets and 19.1 per cent YoY expansion in earnings base to N2.64 trillion. This led to a profit before tax of N53.7 billion representing 112.9 per cent annual growth.
On the back of the impressive performance, the bank declared a final dividend of 40 kobo per share which brings its total dividend for 2022 to 50 kobo per share.
Speaking on the bank’s impressive performance, MD/CEO of Fidelity Bank, Nneka Onyeali-Ikpe said: “we are happy to report another year of impressive double-digit growth across key income and balance sheet lines. This validates our growth strategy and capacity to deliver superior returns to shareholders.”
Further review showed that net interest income increased by 60.9 per cent YoY to N152.7 billion. The high yield environment had a positive impact on net interest margin, which increased to 6.4 per cent from 4.7 per cent in 2021 full year while average funding cost inched up slightly to 4.6 per cent from 4.2 per cent.
Similarly, total deposits increased by 27.4 per cent to N2.58 trillion from N2.02 trillion in 2021 full year, in line with the bank’s guidance for 2022 full year published in its investor relations presentation. The increase was driven by 43.1 per cent growth in low-cost deposits, which resulted in improved margins.
Speaking on the contribution of Foreign Currency (FCY) deposits to its financial performance, Onyeali-Ikpe noted that, “FCY deposits increased by $597 million to $1.5 billion and now accounts for 27.5 per cent of total deposits from 19.7 per cent in 2021 full year, as we continue to harness the benefits of our renewed drive in the export business and the diaspora banking space.”
Onyeali-Ikpe explained that “in 2023, we are committed to our strategic plan of expanding our service touchpoints beyond the Nigerian market and providing straight-through services that meet and exceed the needs of our growing clientele.”
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