SOL: Fidelity Bank Reaffirms Commitment to Regulatory Compliance
Fidelity Bank Plc has assured shareholders and stakeholders of its full compliance with the recent Central Bank of Nigeria (CBN) circular on Regulatory Forbearance for Single Obligor Limits (SOL) and credit exposures.
The bank made this known in its response to the CBN through a circular sent to the Nigerian Exchange Ltd. (NGX) on Wednesday.
The circular, referenced BSD/DIR/CON/LAB/018/008, granted temporary regulatory relief to banks to strengthen capital buffers and ensure financial stability. The bank said it remains committed to adhering to all regulatory directives aimed at enhancing prudence in the banking sector.
“As a responsible financial institution, Fidelity Bank Plc is aligned with the CBN’s intent to ensure stronger capital adequacy within the industry,” the bank said.
Highlighting progress on capital mobilisation, the bank disclosed that it had successfully raised N273 billion through a recently concluded public offer and rights issue, which were oversubscribed by 237.92 per cent and 137.73 per cent, respectively.
“In line with the new N500 billion capital requirement for banks with international licenses, we are set to raise an additional N200 billion through a private placement in the 2025 financial year,” the bank noted.
It added that approvals for the private placement had already been secured from CBN and shareholders, with other regulatory consents currently being processed.
On the issue of exposure related to the SOL forbearance, the bank noted that it concerns only two obligors, with assurance that these exposures would be aligned with regulatory limits within the first half of the year.
Regarding the forbearance granted on other credit facilities, the bank stated that it involved four customers, adding that it has made significant provisions and is implementing measures to either fully provision or return the accounts to performing status by June 30.
“Fidelity Bank expects to fully exit all CBN forbearance arrangements by the end of the first half of 2025 and is well-positioned to meet the requirements for dividend payment in the current and future financial years,” the bank said.
The bank also extended appreciation to its shareholders, customers, and other stakeholders for their continued support and confidence. #SOL: Fidelity Bank Reaffirms Commitment to Regulatory Compliance Nigeria Boosts Trade Surplus to N5.17trn as Imports Taper
