Business
Fidelity Bank Assures Shareholders Of Dividend Payment, Targets Exit From CBN Forbearance In June
assuring shareholders and stakeholders of its readiness
Fidelity Bank Plc has reaffirmed its financial resilience and commitment to regulatory compliance following the recent circular issued by the Central Bank of Nigeria (CBN) on regulatory forbearance.
In an official statement signed by the Company Secretary, Ezinwa Unuigboje, the bank clarified its position on the CBN’s directive, assuring shareholders and stakeholders of its readiness to meet all capital and credit-related requirements.
The circular from the CBN, referenced BSD/DIR/CON/LAB/018/008, concerns regulatory forbearance on Single Obligor Limit (SOL) and other credit facilities. Fidelity Bank stated that it remains fully aligned with the CBN’s goals of strengthening capital buffers and enhancing prudence in Nigeria’s banking industry.
Highlighting its capital strengthening initiatives, the bank revealed that it had successfully raised ₦273 billion through an oversubscribed Public Offer and Rights Issue.
The next phase involves a ₦200 billion Private Placement scheduled for the 2025 financial year, which already has the backing of both the CBN and its shareholders. Upon completion of this capital raise, the bank will meet the new ₦500 billion minimum regulatory capital requirement for banks with international authorization.
On its current regulatory forbearance exposure, Fidelity Bank disclosed that the SOL arrangement involves two obligors and is expected to be brought within approved limits by the end of the first half of 2025. For other credit facilities, affecting four customers, the bank has already taken proactive measures, including significant provisioning and recovery strategies. The goal is to fully resolve or return the affected accounts to performing status by June 30, 2025.
With these efforts in motion, the bank expressed confidence in exiting all CBN forbearance arrangements within the stated timeline. More importantly, it assured shareholders of its strong financial footing, emphasizing that it is well-positioned to meet dividend payment requirements for the current and future financial years.
Fidelity Bank also extended appreciation to its investors, customers, and stakeholders for their enduring trust and support.
