Fidelity Bank proposes 14k dividend, grows gross earnings by 3.5 %

By Peter Egwuatu
FIDELITY Bank Plc is proposing a dividend of 14 kobo per share to its shareholders, even as its gross earnings went up by 3.5 per cent to N152.0 billion for the financial year ended December 31, 2016, from N146 billion achieved in the corresponding period in 2015.
The full year audited results for the bank, released on the Nigerian Stock Exchange (NSE) shows that net interest income grew by 1.7 per cent to N61.9bilion from N60.9billion in 2015, whilst total deposits, a measure of customer confidence, grew by 3 per cent, rising to N793.0 billion from N769.6 billion in 2015. Similarly total assets increased by 5.4 per cent to N1.3 trillion from N1.2 trillion in the corresponding period of 2015.
Profits, however, were moderate in the period under review by the one-off staff cost incurred during the year. Consequently Profit Before Tax, PBT stood at N11.1 billion down from N14 billion in 2015.
“Our financial performance in 2016 reflects the sound fundamentals of our evolving business model as we continued with the disciplined execution of our medium-term strategy which positions the business for improved and sustainable profitability” said the Fidelity Bank CEO, Mr. Nnamdi Okonkwo.
He explained that profits dipped due to the cost of N4.8 billion cost incurred as Fidelity Bank discontinued its legacy gratuity and retirement scheme. “Excluding this one-off charge, PBT for the year would have been at N15.8bn” he stated.