A major highlight of Fidelity Bank Plc’s full year 2022 report is a recommendation of a 42.9% increase in dividend payout by its Board of Directors.
This is contained in the bank’s latest audited financial statement and accounts for the year ended December 31, 2022, released yesterday to the investing public.
In one of the highest return growths in the stock market, Fidelity Bank, which set a personal record with its first interim dividend, is increasing cash dividends payable to shareholders to N15.7 billion in 2022 from N10.137 billion in 2021.
According to regulatory filing at the Nigerian Exchange (NGX), shareholders, who received interim dividend of 10 kobo per share earlier in the year, will receive a final dividend per share of 40 kobo, totaling a payout of 50 kobo for the 2022 business year as against 35 kobo paid in 2021.
The report also showed a double in profitability, driven by strong growths in the top-line and the structural balance of the bank’s operations.
Gross earnings rose by 34.4% in 2022 to N337.05 billion against N250.78 billion in 2021, with performance driven largely by its core commercial banking operations.
Gross interest income rose by 45.2% from N203.57 billion to N295.58 billion, representing 87.7% and 81.2% of gross earnings in 2022 and 2021 respectively. After interest expenses, net interest income stood at N152.70 billion in 2022 compared with N94.88 billion in 2021, an increase of 60.94%.
Total operating expenses stood at N120.78 billion in 2022 as against N96.31 billion in 2021, an increase of 25.4%; lagging behind top-line growth. Expenses were driven by more than a quarter growth in other non-personnel operating expenses, reflecting the impact of spiraling hyperinflation that characterised the 2022 business year.
After taxes, net profit rose from N23.10 billion to N46.72 billion, an increase of 102.2%. With these, earnings per share rose correspondingly from 80 kobo in 2021 to N1.61 in 2022.
Improvements in the profitability of the bank was driven by a business-wide understanding of the key goals and strategies as the bank continued to prioritise investments in human capital and technology as enablers for growth.
Other highlights
Total assets touched the N4 trillion mark at N3.99 trillion in 2022 as against N3.28 trillion in 2021, an increase of 21.65%. Customer deposits, which underlines public acceptance and market status, grew by 27.7% from N2.02 trillion to N2.58 trillion.
In the latest financial statement, key ratios underlining corporate efficiency, profitability, asset management, sustainability and shareholders’ value creation, among others, all trended upward.
- Net Interest Income, the profitability of the core banking operations, rose from N94.88 billion in 2021 to N152.70 billion in 2022.
- Pre-tax profit margin, the institutional profitability as a corporate entity, increased from 10.05% in 2021 to 15.93% in 2022.
- Net profit margin also improved from 9.21% to 13.86%.
- Return on total equity- value creation as a business owned by shareholders, grew from 8.1% in 2021 to 14.86% in 2022.
- Return on total assets almost doubled in 2022 at 1.35% against 0.77% in 2021.
Commenting, Managing Director, Fidelity Bank, Mrs Nneka Onyeali-Ikpe, was quoted as saying that the 2022 performance reflected the bank’s continuing focus on its execution strategy, despite global and national macroeconomic headwinds.
She noted that improvements in the profitability of the bank was driven by a business-wide understanding of the key goals and strategies as the bank continued to prioritise investments in human capital and technology as enablers for growth.
