BY CHINYERE OBIORA, LAGOS – Fidelity Bank Plc shareholders have approved N3.186 billion as total dividend payout for the financial year ended December 31, 2018.
The amount represents N0.11 kobo per ordinary share of 50 kobo held by investors at the close of business on April 12, 2019.
At the Bank’s Annual General Meeting (AGM) in Lagos, the shareholders commended the Board and management for maintaining dividend policy, even as they expressed the hope for higher payout in future.
Similarly, they urged Board to adopt strategies that would enable them sustain growth and profitability in the industry.
The Bank’s Managing Director and Chief Executive Officer, Mr Nnamdi Okonkwo said the institution has, in the last 12 years, been consistency in dividend payment, stressing that the current developments are pointers that investors would be entitle to higher dividend in future.
Okonkwo also said management would continue to review staff remunerations in line with current trends in the banking industry.
He said growing the savings deposits would re-position the bank for efficient service delivery and competitiveness, noting that savings deposits grew from N75 billion to about N226 billion in the last five years.
On the bank’s performance, Okonkwo said; “Our 2018 audited financial statement shows a strong double-digit growth in earning assets, customer deposits and revenues while we were able to sustain cost discipline with growth in total operating expenses remaining below average headline inflation in 2018.
He said gross earnings that also increased by 4.8 per cent to close at N188.9 billion was primarily driven by 22.7 per cent growth in earning assets which led to 4.2 per cent increase in interest income to N153.7 billion and 9.2 per cent rise in net fee and commission income to N31.8 billion.
According to him, digital banking gained traction during the year with almost 40 per cent of customers now enrolled on mobile/internet banking products and 81 per cent of total transactions fully on digital platform.
The Chief Executive was upbeat that the bank’s net interest margin stood at 5.8 per cent due to lower yields on earning assets.
Speaking at the meeting, Bank’s Chairman, Mr Ernest Ebi said they have embarked on a robust digital transformation journey with the implementation of some digital initiatives that include digital lending products.
On future plans, Okonkwo said the Bank is working establishing a sub-brand that will operate primarily through the digital platform, stressing that going forward, the board expect the economy to pick up towards the middle of 2019 when all the outstanding election issues would have been resolved.
He said happenings in the financial system would largely depend on government’s political will to drive reforms in critical sectors of the economy.
