Fidelity Bank grows gross earnings to N188.9bn in 2018

Steve Agbota and Uche Henry

Fidelity Bank Plc has disclosed that its gross earnings increased by 4.8 per cent to close at N188.9 billion in its financial year ended December 31, 2018.

The bank’s gross earnings 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.

However, at the bank’s 31st Annual General Meeting (AGM) in Lagos at the weekend, shareholders unanimously approved the payment of a total dividend of N3.19 billion for the preceding financial year. The dividend translated to 11kobo per ordinary share of 50kobo held by investors at the close of business on April 12, 2019.

Speaking at the meeting, the bank’s CEO, Nnamdi Okonkwo, assured shareholders of consistent and enhanced dividend in future, saying that the bank has paid  dividend consistent ly in the last 12 years and the trend would be maintained.

On the bank’s performance, he said; “Our 2018 audited financial statement shows strong double-digit growth in earning assets, customer deposits and revenues, while we were able to sustain our cost discipline with growth in total operating expenses remains below the average headline inflation rate in 2018.”

According to him, the bank’s 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 now done on digital platforms.

He stated that the bank would continue to invest heavily on technology in order to enhance activities through digital channels. He added that the bank would continue to grow savings deposit, as savings deposits doubled in the last five years.

In its earlier statement, the bank’s Chairman, Ernest Ebi, the bank would remain committed to corporate governance, risk management and strong capital in line with its five- year strategic plan aimed at delivering returns to all stakeholders.

He also assured the shareholders that the board and management focus was to build a very strong bank that they would be proud of.

Commenting on the dividend payout, he explained to shareholders that the bank needed to provide buffers for economic headwinds to ensure sustainability. He promised that the bank would someday start payment of interim dividend.