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Fidelity Bank proposes N8bn interim dividend payout from retained earnings

Fidelity Bank grows profit by 131.5% in 2023

…share price up 62.1% year-to-date

Fidelity Bank Plc has released its financial report for the half-year (H1) period ended June 30, 2023.

The lender’s financials at the Nigerian Exchange Limited (NGX) came with impressive H1’23 pre-tax profit of 204.4percent to N76.334billion, as against N25.079billion it recorded in the corresponding H1 period of 2022.

Also, the bank’s profit after income tax (PAT) rose to N61.995billion in H1’2023, up by 166 percent from N23.307billion it recorded in H1’2022.

Read also: FSL Securities lists Fidelity Bank’s 3.037bn ordinary shares on NGX

The Board of Directors of Fidelity Bank Plc pursuant to the powers vested in it by Section 426 of the Companies and Allied Matters Act (CAMA 2020), proposed an interim dividend of 25 kobo per share amounting to N8billion from retained earnings as at June 30, 2023.

In the review half year period to June 30, 2023, Fidelity Bank’s earnings per share (EPS) – basic and diluted – rose to 194kobo from 80kobo in H1’2022.

Fidelity Bank’s shares traded at N7.05 per share as at Thursday August 31, which implies an increase by 62.1percent in eight months. The bank’s share price had reached a 52-week high of N9.82 as against a 52-week low of N3.1.

The proposed interim dividend will be presented for ratification by shareholders at the next Annual General Meeting.

Read also: NGX reclassifies Fidelity Bank as medium price stock

Payment of the interim dividend is subject to withholding tax at the applicable rate of 10percent which will be deducted before payment.

The bank grew deposits from customers to N3.178trillion in H1’2023 compared to N2.580trillion recorded as at December 31, 2022. Loans and advances to customers increased to N2.647trillion in H1’23 from N2.116trillion as at December 31, 2022.