Fidelity Bank Reaffirms Regulatory Compliance, Capital Strength Amid CBN Forbearance Circular
…Projects exit from forbearance arrangements by mid-2025, assures dividend prospects remain intact
Fidelity Bank Plc has reaffirmed its unwavering commitment to regulatory compliance and financial stability in response to the Central Bank of Nigeria (CBN)’s recent circular (Reference No. BSD/DIR/CON/LAB/018/008) on regulatory forbearance concerning Single Obligor Limit (SOL) and other credit facilities.
In a statement addressed to its esteemed shareholders, NGX Regulation Limited (NGX RegCo), and other stakeholders, the Bank offered clarifications on its current position and proactive measures taken to align with the CBN’s policy objectives, which are aimed at strengthening capital buffers and ensuring prudent financial practices in the banking sector.
“As a responsible financial organisation, Fidelity Bank remains fully committed to the implementation of regulatory directives, including the current CBN circular on forbearance,” the statement read. “Our efforts are directed towards ensuring capital adequacy, sound risk management, and the long-term interest of all stakeholders.”
Highlighting its robust capital-raising efforts, the Bank disclosed that it successfully raised a total of N273 billion through a highly successful Public Offer and Rights Issue, which were oversubscribed by 237.92% and 137.73% respectively.
In a strategic move to meet the CBN’s new minimum regulatory capital requirement of N500 billion for banks with international authorisation, Fidelity Bank plans to raise an additional N200 billion through a Private Placement in the 2025 financial year.
The Private Placement has already received the requisite approvals from both the CBN and the Bank’s shareholders, with other necessary regulatory endorsements currently in process to ensure completion within the 2025 timeline.
Addressing the specifics of the regulatory forbearance, the Bank noted that its exposure under the Single Obligor Limit forbearance relates to just two obligors. “We are confident that this exposure will be brought within the applicable regulatory limit within the first half of 2025,” the Bank assured.
Regarding the forbearance granted on other credit facilities, the Bank confirmed that it affects four customers. It further disclosed that substantial provisioning has already been made on these accounts and that comprehensive steps have been taken to either fully provide for them or return them to performing status by 30 June 2025.
“As such, we expect to fully exit all CBN forbearance arrangements – whether related to Single Obligor Limit or other credit exposures – by mid-2025,” the Bank stated. It further noted that it remains well-positioned to satisfy prevailing capital requirements, paving the way for dividend payment in the current financial year and beyond.
