Fidelity Bank anticipates a potential loss of over N1.19 billion due to claims and litigation for the year ending December 2023, as revealed in its condensed unaudited financial statements filed with the Nigerian Exchange Limited. The bank disclosed its involvement in 65 legal cases as a defendant and seven cases as a plaintiff, emphasizing that while it doesn’t foresee a material adverse effect on its financial position, the estimated loss may amount to N1.19 billion upon the conclusion of these cases.
The total claimed against the bank is estimated at N11.74 billion as of December 31, 2023, with N3.95 billion in the seven cases instituted by the bank during the same period.
Despite these potential legal challenges, Fidelity Bank posted a post-tax profit of N142.83 billion, marking a remarkable 205% growth from the N46.72 billion recorded in 2022. The bank’s total earnings also witnessed substantial growth, reaching N553.90 billion from N337.05 billion in the previous year, reflecting a robust 64.34% increase.
Furthermore, the unaudited report highlights the bank’s significant lending activities, with loans and advances amounting to N1.11 trillion to customers in the oil and gas sector. The manufacturing and transportation sectors also received substantial funding, with amounts of NN357.55 billion and N328.06 billion, respectively.
Fidelity Bank closed Thursday’s trading session with a market cap of N374.54 billion, experiencing a 9.86% stock appreciation to close at N11.7 each. As regulatory requirements dictate, other lenders are expected to assess potential losses related to litigation and claims as they release their full-year audited results in the coming weeks.
