Fidelity Bank to conduct second phase of capital raise before year end

Nneka Onyeali-Ikpe, managing director and chief executive officer (CEO) of Fidelity Bank Plc, says the lender plans to conduct the next phase of its equity capital-raising initiative in 2025.

Onyeali-Ikpe spoke during the bank’s 37th annual general meeting (AGM), held virtually on Tuesday.

On June 5, 2024, Fidelity Bank announced its readiness to raise a total of N127.1 billion through a rights issue to existing shareholders and a public offer.

The bank, in February 8, said it had concluded the first phase of its equity capital raise, recording a 237 percent oversubscription in its public offer.

According to a statement by the bank, Onyeali-Ikpe emphasised the bank’s commitment to bolstering its asset base.

She noted that the bank’s strategic outlook would build on the successes achieved in the 2024 financial year.

“Our priorities in 2025 financial year are to complete the next phase of our capital raise and further strengthen our asset base, enhance operational efficiency and digital innovation and explore strategic regional expansion into select African markets,” Onyeali-Ikpe said.

Speaking at the meeting, Mustafa Chike-Obi, Fidelity Bank’s chairman, board of directors, highlighted the bank’s ability to navigate global economic challenges successfully.

“We demonstrated exceptional resilience, achieving record-breaking growth across all performance indicators, most notably our Profit Before Tax (PBT),” he said.

Chike-Obi also expressed satisfaction with the outcome of the initial phase of the bank’s capital-raising exercise.

“The oversubscription of 237.9% in the Public Offer and 137.7% in the Rights Issue is a testament to the strength of our brand and the confidence the investing public has in us. Equipped with this vote of trust, we will proceed swiftly and conclude the second tier of our capital-raise exercise,” he said.

Tunji Okelana, chairman of Fidelity Bank’s zonal shareholders committee, commended the bank’s leadership for its impressive growth trajectory.

“The achievements of the current MD have surpassed that of everyone who held that office before her. In addition, staff working with her are assets. They are truly ‘Fidelity, they keep their word’. Without any doubt, I am very happy with the bank,” he said.

Boniface Okezie, national chairman of the Progressive Shareholders Association, also lauded the bank’s 2024 financial results.

“This is a superlative performance, and we, the shareholders, are grateful to management and staff for giving us a bank to be proud of. It is also important to note that the bank has earned its spot as one of the top 3 dividend-paying financial institutions in Nigeria,” Okezie said.

According to the statement, several resolutions were approved during the AGM, including the declaration of a final dividend of N1.25 kobo per share.

Additionally, the bank announced the election of Abdullahi Mohammed and Obiaku Okam as non-executive directors, and Sufiyanu Garba as an executive director. Mustapha Chike-Obi and Henry Obih were also re-elected as non-executive directors.

Fidelity Bank had said it recorded N385.2 billion profit before tax (PBT) in 2024, marking a 210 percent increase.