LAGOS/Nigeria: Fidelity Bank, one of Nigeria’s leading financial institutions, has surged to the forefront of the nation’s most capitalized banks, bolstering its position based on the third-quarter financial results of 2023. According to Thisday newspapers, the bank reported a remarkable capital base of N410.75 billion as of September 2023, a significant leap from N314.3 billion in 2022.
The unveiling of Fidelity Bank’s robust financial standing comes in the wake of an impending move by the Central Bank of Nigeria, as signaled by Dr. Olayemi Cardoso, the CBN Governor, during the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria. The plan involves the potential recapitalization of commercial banks, prompting industry experts to anticipate forthcoming capital-raising initiatives by banking institutions.
In a strategic move earlier in the year, Fidelity Bank proactively sought and secured shareholders’ approval for a capital raising endeavor. The Extraordinary General Meeting held virtually on Friday, 11 August 2023, resulted in unanimous consent for a capital raise through a Public Offer for up to 10 billion Ordinary Shares and a Rights Issue of up to 3.2 billion Ordinary Shares, catering to both new and existing shareholders respectively.
The landscape of Nigeria’s banking sector, notably the topmost capitalized banks as of September 2023, paints a compelling picture:
Zenith Bank – N1.92 trillion: Zenith Bank Plc occupies the pinnacle with a shareholders’ fund reaching approximately N1.92 trillion, a considerable surge from N1.31 trillion in 2022. The bank also reigns as the highest profit generator in 2023, boasting a pre-tax profit of N505 billion.
UBA – N1.778 trillion: United Bank for Africa follows closely, marking itself as Nigeria’s second-highest profit generator and the second most capitalized bank with a total shareholders’ fund of N1.778 trillion in Q3 2023, a substantial rise from N922.1 billion in 2022.
Access Holdings – N1.64 trillion: Access Holdings stands strong as a Tier 1 capital bank, reporting a total equity of N1.64 trillion against N1.231 trillion in 2022, securing its place as Nigeria’s third-largest bank by capital base.
First Bank Holdings – N1.37 trillion: First Bank Holdings secures the fourth spot, revealing a total equity of N1.37 trillion in the Q3 2023 results. Its subsidiary, First Bank Limited, holds a capital base of N1.287 trillion, reflecting a robust financial position.
Ecobank – N1.373 trillion: Ecobank positions itself at fifth place, showcasing a shareholders’ fund of N1.373 trillion, a notable surge from N935 billion in the same period of 2022.
The list extends further, encompassing GTCO Holdings, Stanbic IBTC Holdings, FCMB, and Sterling Financial Holdings, each marking their presence and resilience in the face of potential regulatory changes.
Fidelity Bank’s ascension in capitalization, coupled with its proactive measures, not only positions it favorably amidst potential recapitalization exercises but also underlines its strategic readiness to navigate the evolving landscape of Nigeria’s banking sector.
