Fidelity Bank Plc has issued a statement clarifying its compliance with a recent regulatory circular from the Central Bank of Nigeria (CBN) regarding forbearance on Single Obligor Limits (SOL) and other credit facilities, while reaffirming its strong capital base and commitment to sound financial practices.
The clarification comes in response to CBN’s circular (Ref: BSD/DIR/CON/LAB/018/008), which outlines regulatory relief aimed at reinforcing capital buffers across the banking sector.
According to the statement signed by the bank’s Company Secretary, Ezinwa Unuigboje, Fidelity Bank emphasized its unwavering commitment to regulatory compliance and financial prudence.
“As a responsible financial institution, Fidelity Bank Plc remains fully aligned with the CBN’s objective of promoting capital adequacy and sustainable lending practices,” the bank stated.
The bank disclosed that it has already taken substantial steps to meet the new capital requirements set by the CBN for banks with international authorization. Specifically, it raised ₦273 billion through a recent public offer and rights issue, which were oversubscribed by 237.92% and 137.73% respectively. Additionally, it plans to raise another ₦200 billion through a private placement within the 2025 financial year.
Approvals from the CBN and shareholders for the private placement have already been secured, with other necessary regulatory approvals currently in progress.
Addressing the SOL-related forbearance, Fidelity Bank confirmed that the exposure pertains to only two obligors and assured stakeholders that it is confident of bringing these exposures within regulatory limits by the end of the first half of 2025.
For the broader credit facility forbearance, the bank said it applies to just four customers. “We have proactively made substantial provisions on these facilities and taken targeted steps to either fully provision them or return them to performing status by June 30, 2025,” the bank noted.
Fidelity Bank expressed optimism that it will exit all CBN forbearance arrangements within the stipulated timeline and affirmed its readiness to meet the necessary conditions to pay dividends for the current financial year.
The bank also expressed gratitude to its investors, customers, and stakeholders for their trust and ongoing support.