Fidelity Bank anticipates facing a litigation-related loss exceeding N1 billion

Date:

Fidelity Bank’s management anticipates a potential loss of approximately N1.19 billion due to claims and legal proceedings for the fiscal year ending December 2023, as outlined in its condensed unaudited financial statements filed with the Nigerian Exchange Limited.

The bank, involved in 65 ongoing cases as a defendant and seven as a plaintiff, estimates the total claimed amount against it at N11.74 billion.

Despite the directors’ confidence that the outcomes won’t significantly impact the bank’s financial position, a potential loss of N1.19 billion is projected upon the conclusion of these cases.

Despite the potential legal challenges, Fidelity Bank reported impressive financial performance, with a post-tax profit of N142.83 billion, marking a remarkable 205% growth from 2022.

The bank also experienced substantial growth in earnings, reaching N553.90 billion, a 64.34% increase from the previous year.

Notably, the bank extended significant loans and advances, amounting to N1.11 trillion to customers in the oil and gas sector, with the manufacturing and transportation sectors following at NN357.55 billion and N328.06 billion, respectively.

Closing Thursday’s trading with a market cap of N374.54 billion, Fidelity Bank’s stocks appreciated by 9.86%, closing at N11.7 each.

 

In the upcoming weeks, other financial institutions are expected to follow regulatory requirements and estimate potential losses to litigation and claims as they release their full-year audited results.

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