Fidelity Bank Plc ("the Bank") refers to the recent circular issued by the Central Bank of Nigeria ("CBN") with reference number BSD/DIR/CON/LAB/018/008 concerning regulatory forbearance on the Single Obligor Limit (SOL) and other credit facilities. The Bank wishes to provide the following clarifications to its esteemed shareholders, NGX Regulation Limited (NGX RegCo), and other stakeholders:
(a) As a responsible financial institution, Fidelity Bank Plc remains committed to complying with all regulatory policies and directives, including the recent CBN circular on forbearance. This circular is aimed at strengthening capital buffers and enhancing financial prudence within the banking industry.
(b) In terms of capital adequacy, the Bank successfully raised ₦273 billion through a recent Public Offer and Rights Issue, which were oversubscribed by 237.92% and 137.73% respectively. Furthermore, the Bank intends to raise an additional ₦200 billion via a Private Placement in the 2025 financial year to meet the new minimum regulatory capital requirement of ₦500 billion for banks with international authorization. Approvals from the CBN and shareholders have already been secured, while other regulatory approvals are being processed to ensure timely completion in 2025.
(c) The Bank’s exposure under the SOL forbearance relates to two obligors. We are confident that this exposure will be brought within the applicable regulatory limit during H1 2025.
(d) Regarding the forbearance granted on other credit facilities, the Bank confirms that this applies to four customers. Proactive steps have been taken, including substantial provisioning on these facilities. The Bank has also implemented targeted and comprehensive measures to ensure full provisioning or a return of these accounts to performing status by June 30, 2025.
As such, the Bank expects to fully exit all CBN forbearance arrangements (SOL and credit-related) and is well-positioned to meet all prevailing regulatory requirements. This ensures our ability to declare and pay dividends for the current financial year and beyond.
We take this opportunity to sincerely thank our investors, customers, and stakeholders for their continued confidence and support.