Fidelity Bank Suspends Interim Dividend Despite ₦132bn Net Income in H1 2025
Fidelity Bank’s decision to withhold interim dividends for the first half of 2025 has drawn attention across the Nigerian financial space, especially considering the bank reported a solid net income of over ₦130 billion for the period. Under normal circumstances, such earnings would position the bank comfortably for a mid-year payout. However, regulatory and balance-sheet realities shaped a different outcome.
According to industry reports, part of Fidelity Bank’s retained earnings turned negative, limiting its ability to draw from accumulated profits for shareholder distributions. Nigerian banks are required to meet specific capital and earnings thresholds before issuing dividends, and any erosion in retained earnings automatically restricts payout options. For Fidelity Bank, strengthening this buffer became a priority over immediate shareholder rewards.
A more decisive factor was a Central Bank of Nigeria (CBN) directive affecting banks under regulatory forbearance. The apex bank instructed affected institutions to suspend dividends, bonuses, and foreign investment commitments until they regularize exposures that breached prudential limits, including single-obligor limits. Fidelity Bank fell under this category, compelling it to pause interim payouts regardless of its profit numbers.
The bank has since emphasized its commitment to exiting the forbearance regime by June 30, 2025. Management noted that efforts are underway to restructure or provision the affected facilities, with the intention of restoring full compliance and resuming dividend payments for the full year.
For investors, the bank’s stance signals a focus on balance-sheet resilience, regulatory alignment, and long-term value, rather than short-term payouts.
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