Home Business News Fidelity Bank's shareholders approve proposed dividend for FY 2018

Fidelity Bank’s shareholders approve proposed dividend for FY 2018

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Fidelity Bank Plc‘s shareholders have unanimously approved the payment of a total dividend of N3.19 billion proposed by the board of directors for the financial year ended Monday, December 31, 2018.

Nairametrics understands that the total dividend translates to 11 kobo per shares and was approved by the shareholders at the bank’s 31st annual general meeting (AGM) which took place in Lagos over the weekend.

The company’s commendable FY 2018 results

Gross earnings – Gross earnings for the year increased to N188.87 billion from N180.24 billion declared in 2017 financial year end, indicating a 4.8 percent increase.

Profit Before Tax – The notice further showed that the bank’s Profit before tax (PBT) rose to N25.08 billion from N19.21 billion posted in 2017, representing 30.6 percent increase.

Profit After Tax – Profit after tax (PAT) grew by 29 percent to N22.93 billion for the period ended December 31, 2018, when compared to N17.77 billion recorded in 2017.

Understanding Dividend 

A dividend is a payment made by a company to its shareholders, usually as a distribution of profits. When a company earns a profit or surplus, it reinvests a portion of the profit in the business (retained earnings) whilst paying a portion as dividends to the shareholders.

Distribution to shareholders may be in cash (usually a deposit into a bank account) or the issuance of further shares, otherwise known as shares repurchase. But this is usually if the company has a dividend reinvestment plan.

In other words, a dividend is allocated as a fixed amount per share with shareholders receiving a dividend in proportion to their shareholding. For the joint-stock company, paying dividends is not an expense; rather, it is the division of after-tax profits among shareholders.

About Fidelity Bank Plc

Fidelity Bank Plc began operation in 1988 as Fidelity Union Merchant Bank Limited. By 1999, it converted to a commercial bank and changed its name to Fidelity Bank Plc. It became a universal bank in February 2001, with a license to offer the entire spectrum of commercial, consumer, corporate, and investment banking services.

The company’s shares are currently trading at N1.94 on the floor of the Nigerian Stock Exchange (NSE).

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