By Opeyemi Issa InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s Fidelity Bank Plc has scheduled May 23 2012 as payment date for its proposed 14 Kobo dividend to investors of the Bank.
Fidelity Bank made this affirmation in its Corporate Action to the Nigerian Stock Exchange (NSE) and made available to www.investadvocateng.com in Lagos Nigeria.
According to the Bank, Qualification Date is April 26 2012, while closure of Register of Members to benefit from the dividend payout is 27th April to 3rd May 2012; after the Bank’s Annual General Meeting (AGM) scheduled for Thursday May 17 2012.
The Bank had in year 2010 end paid a similar 14 Kobo dividend to its shareholders; which indicated an increase of 180 percent (180%) compared to 0.5 Kobo paid in year 2009 end.
A review of Fidelity Bank’s Audited Report for the Period Ended December 31 2011; shows that Gross Earnings increased by 25% as the Bank recorded N70.048 billion in year 2011 end compared to N56.049 billion.
The Bank posted a Profit After Tax (PAT) of N5.361 billion in the review period of year 2011 compared to N6.108 billion in year 2010 end; indicating a slip of 12.23%.
While Profit Before Tax (PBT) was N7.671 billion in year 2011 end compared to N8.651 billion in year 2010 Audited Period; showing a decrease of 11.33% in the review period of the Audited Year End 2011.
In a Statement from the Bank and made available to www.investadvocateng.com, while reacting to the 2011 Result, Reginald Ihejiahi, Group Managing Director/Chief Executive Officer (MD/CEO), said that the Financial Year Ended December 31 2011 was an exciting and challenging one for the Bank.
“We are thrilled by the progress made in improving key operating parameters including Gross Earnings, Deposits and the Loan Book. Our focus on reworking our funding base to a more sustainable and balanced deposit mix, through excellent branch roll-out strategy and increased recruitment of key businesses, has continued to show in strong positive growth in sustainable low cost deposits while expanding the base for non interest income†Ihejiahi said.
According to him, as the Bank continues to douse the impact of regulatory induced cost on its operating profit through expansion in its earning capacity, “we expect that benefits of increased loan penetration applied to a growing low cost and sustainable funding base, and increased businesses from new and existing accounts would provide the impetus needed to grow wealth for our various stakeholders, while we continue to seek increased Market Share†he said.
Income highlights of the Banks shows that Net Interest and Discount Income grew by 9.6% to N29.08 billion from N26.54 billion recorded in 2010, though average interest income on average earning assets dropped from 11.6% in 2010 to 10.7% in 2011.
Also, Non-interest Income grew by 41.3% to N21.95 billion from N15.54 billion in 2010; a key benefit of the increasing linkage effect from new branches.
While Operating Expenses rose by 30% to N38.88 billion in 2011 from N29.86 billion recorded in 2010, due to sustained branch development activity, impact of Industry Resolution cost which gulped N1.5 billion in FYE 2011, and one-off additional provision of N2.2 billion needed to write up the actuarial valuation of the net present value of future staff retirement benefit obligations preparatory to full compliance with International Financial Reporting Standards (IFRS).
In the same vein, the Bank’s Balance Sheet items shows that Total Assets increased by 53.84% to N740.94 billion as at December 31, 2011 from N481.62 billion as at December 31, 2010.
Total Customer Deposits increased by 72% to N560.37 billion as at December 31, 2011 from N326.74 billion as at December 31, 2010. The composition of low cost deposit to total deposits was 71% as at December 31, 2011.
While Net Loans and Leases grew by 42% to N282.72 billion as at December 30, 2011 from N199.16 billion as at December 31, 2010.
