Fidelity Bank committed to compliance with CBN’s forbearance circular

Stanley Ihedigbo

Fidelity Bank Plc has stated in response to the Central Bank of Nigeria’s (CBN) circular on regulatory forbearance on Single Obligor Limit (SOL) and other credit facilities.

According to the bank Company Secretary, Ezinwa Unuigboje, the bank aimed to provide clarity on its position regarding the CBN’s directives and its commitment to compliance.

Fidelity Bank reaffirmed its commitment to ensuring compliance with regulatory policies and directives.

The bank views the CBN circular as a measure to strengthen capital buffers and enhance financial prudence within the banking industry.

The bank has successfully raised ₦273 billion through a recent Public Offer and Rights Issue, which was oversubscribed by 237.92% and 137.73%, respectively.

Additionally, Fidelity Bank intends to raise an extra ₦200 billion through a Private Placement in 2025 to meet the new minimum regulatory capital requirement of ₦500 billion for banks with international authorization.

Fidelity Bank’s exposure under the Single Obligor Limit (SOL) forbearance relates to two obligors.

The bank is confident that this exposure will be brought within the applicable regulatory limit in H1 2025.

The bank confirmed that forbearance granted on other credit facilities applies to four customers.

Substantial provisions have been made, and targeted steps have been taken to ensure full provisioning or return of the accounts to performing status by June 30, 2025.

Fidelity Bank expects to exit all CBN forbearance arrangements (SOL/Credit) and remains in a strong position to meet prevailing requirements.

The bank is confident in its ability to pay dividends for the current financial year and subsequently.