Fidelity Bank
EKO HOT BLOG reports that Fidelity Bank Plc. has dismissed rumours circulating about a potential revocation of its operating licence by the Central Bank of Nigeria (CBN).
The Fidelity Bank PRO, Dan Preston Nwaokorie, attributed the speculations to “mischief makers” and assured its customers and the public of the bank’s strong financial standing.
The statement comes after the CBN revoked the licence of Heritage Bank Plc.
Fidelity Bank’s decision to raise N127.1 billion through a public offer and rights issue has exacerbated rumours that the bank is also at risk of a licence revocation.
However, in a statement shared with Eko Hot Blog on Monday, the bank maintained that its drive to raise its capital base through the public offer aligns with the CBN’s new requirements.
The bank aims to secure N97.5 billion through the public offer, allowing everyday investors to participate.
Existing shareholders will have the opportunity to purchase additional shares (rights issue) at a ratio of 1 new share for every 10 they already hold, priced at N9.25 per share.
The public offer will also involve 10 billion shares offered at N9.75 each.
Both the rights issue and public offer open for applications on June 20th, 2024.
“We wish to categorically state that our operational license is not at risk of revocation,” Fidelity Bank assured its customers.
The bank stressed that the case of Heritage Bank was isolated, adding there is no basis for such claims regarding their own operations.
According to the CBN, Fidelity Bank acted in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 of the Banks and Other Financial Act (BOFIA) 2020.
Speaking at the signing ceremony which held at the board room of the bank’s head office in Lagos on Wednesday, June 5, the Managing Director and Chief Executive Officer, Nneka Onyeali-Ikpe, disclosed that “the proceeds of the combined offer will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.”
“With an international operating license from the CBN, Fidelity Bank is mandated to raise its capital base to N500 billion within the next two years,” the company added.
“For a bank confident in its business fundamentals, it is not surprising that it has effectively positioned itself at the forefront of achieving the revised minimum capital requirements for Nigerian commercial banks.”
Since its incorporation in 1987 and commencement of operations in 1988, Fidelity Bank has grown from a marginal player to one of the industry giants, securing its universal banking license in 2001.
Fidelity Bank
During the Chukwuma Soludo-engineered consolidation exercise in 2005, Fidelity Bank acquired FSB International Bank Plc. and Manny Bank Plc., becoming one of the top 10 Nigerian banks.
Today, Fidelity Bank has a presence in all the states and major cities in Nigeria and continues to rank among one of the ten main banks in the country by tier-one capital of nearly $1 billion.
In a report on April 11, 2024, titled, “Fidelity Bank in 2024: A Peek Under the Banking Bonnet,” Proshare highlighted the bank’s significant growth and strong financial performance, estimating that Fidelity Bank will rise to full Tier 1 status in its next Tier 1 Banking Sector Report.
“The odious attempt to precipitate a run on Fidelity Bank is financial sleight of hand of the worst sort,” Fidelity Bank noted.
It added that, while the bank is not at any risk considering its “very robust fundamentals,” the banking industry may be worse for such “an invidious campaign if unchecked.”
“Those who are trying to instigate instability in the country’s financial ecosystem should desist. Competition must not be a sleight of the hand battle.”
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