• Tue. Jul 16th, 2024

Fidelity Bank Generates N127.1 Billion Amidst Sector Turbulence, Dismisses Misleading Demarketing Campaigns

In the wake of the Central Bank of Nigeria’s (CBN) revocation of Heritage Bank Plc.’s license, a surge of misleading information has surfaced, attempting to undermine the stability of Fidelity Bank Plc. Despite these challenges, Fidelity Bank has demonstrated robust financial health, recently securing N127.1 billion through a public offer and rights issue aimed at bolstering its capital base.

Following the CBN’s decision on June 3, 2024, to revoke Heritage Bank’s license due to persistent poor financial performance, unfounded rumors have targeted other banks, including Fidelity Bank. This misinformation campaign, purportedly orchestrated by faceless groups, has sought to destabilize public confidence in the banking sector.

In response, Fidelity Bank has underscored its solid financial standing. The bank’s recent capital-raising initiatives include N97.5 billion from a public offer and N29.6 billion from a rights issue, aimed at meeting the CBN’s new capitalization directive. This strategic move comes as part of Fidelity Bank’s plan to elevate its capital base to N500 billion within two years, a requirement for banks holding an international operating license from the CBN.

At a signing ceremony held on June 5, 2024, Fidelity Bank’s Managing Director and Chief Executive Officer, Nneka Onyeali-Ikpe, emphasized the bank’s commitment to growth and innovation. “The proceeds of the combined offer will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels,” Onyeali-Ikpe stated.

Fidelity Bank’s resilience is evident in its financial performance. Since its inception in 1987, the bank has evolved from a merchant bank to a commercial bank, and later to a public limited company. Over the years, it has acquired other banks and expanded its reach, securing a universal banking license in 2001 and an international banking license in 2011. Today, it ranks among Nigeria’s top ten banks by tier-one capital, with nearly $1 billion in assets.

Recent financial reports underscore Fidelity Bank’s robust performance. According to Proshare, Fidelity Bank achieved gross earnings of N337.05 billion in FY 2022, with a notable 30.3% average annual growth rate. Nairametrics highlighted the bank’s Q1 2024 pre-tax profit of N39.5 billion, a 120% increase from Q1 2023, alongside gross earnings of N192.1 billion.

Fidelity Bank’s strategic capital-raising efforts and financial resilience position it as a leader in the sector, contradicting baseless claims of impending insolvency. The bank’s leadership and stakeholders call for a cessation of the damaging misinformation campaign, emphasizing the need for stability and integrity within Nigeria’s financial ecosystem.

Hyacinth Beluchukwu Nwafor

Hyacinth Beluchukwu Nwafor is a seasoned journalist and the CEO/Founder Belch Digital Communications, publishers of Hybrid News Nigeria.

Leave a Reply