Fidelity Bank has announced its commitment to exit Central Bank of Nigeria (CBN) forbearance arrangements by the end of the first half of 2025, ensuring compliance with regulatory requirements and positioning itself for a dividend payout to shareholders for the 2025 financial year.
In a statement issued on Wednesday, the bank disclosed that its exposure under the Single Obligor Limit (SOL) forbearance is tied to two obligors, but expressed confidence that this exposure will be brought within regulatory limits by the first half of 2025.
According to the statement signed by Company Secretary, Ezinwa Unuigboje, Fidelity Bank remains committed to maintaining strict compliance with all regulatory policies, including the recent CBN directive on forbearance, which aims to strengthen capital buffers, improve financial resilience, and promote prudent lending practices across the banking sector.
The bank says forbearance granted on other credit facilities applies to four customers; however, steps have been taken for the return of the accounts to performing status by June 30.
“With respect to the forbearance granted on other credit facilities, the Bank confirms that this applies to four customers. We have proactively made substantial provisions on these facilities and have taken targeted and comprehensive steps to ensure full provisioning or return of the accounts to performing status by June 30, 2025,” the statement reads.
Capital Raising and Growth Strategy
The bank added that it has successfully raised N273 billion through a Public Offer and Rights Issue, which were oversubscribed by 237.92% and 137.73%, respectively.
In a bid to meet the N500 billion minimum capital requirement mandated by the CBN for banks with international authorization, the bank plans to raise an additional N200 billion through a Private Placement in the 2025 financial year.
The statement confirmed that CBN and shareholder approvals for the Private Placement have been obtained, while other regulatory approvals are still being processed to ensure timely completion in 2025.
Bank’s Assurance to Shareholders
Reaffirming its commitment to financial stability and shareholder value, Fidelity Bank assured investors that “it expects to exit all CBN forbearance arrangements (SOL/Credit) and remains in a strong position to meet the prevailing requirements to enable it to pay dividends for the current financial year and subsequently.”
What You Should Know
Earlier, Nairametrics reported that the CBN issued a directive instructing banks under regulatory forbearance to suspend dividends, defer executive bonuses, and halt foreign investments.
- The temporary suspension forms part of the CBN’s broader strategy to improve capital buffers, balance sheet resilience, and prudent capital retention within the banking industry.
- The directive specifically affects banks benefitting from forbearance due to credit exposure challenges and Single Obligor Limit breaches, conditions indicating potential financial stress in affected institutions.
