Fidelity Bank, a leading financial institution, has secured a spot on the list of most capitalized banks in Nigeria based on the Q3 2023 financial results.
In a recent article published in Thisday newspapers, the bank revealed a capital base of N410.75 billion as of September 2023, a significant increase from N314.3 billion in 2022.
The Central Bank Governor, Dr. Olayemi Cardoso, announced the planned recapitalisation of commercial banks at the 58th Annual Dinner of the Chartered Institute of Bankers of Nigeria on 24 November 2023. This has sparked expectations of capital raising exercises by banks in the industry.
Interestingly, Fidelity Bank had already taken a proactive approach by obtaining shareholders’ approval for a capital raising exercise earlier in the year.
During an Extra-Ordinary General Meeting (EGM) held virtually on 11 August 2023, the bank’s shareholders unanimously gave the green light for a capital raising exercise through a Public Offer for up to 10 billion Ordinary Shares and a Rights Issue of up to 3.2 billion Ordinary Shares, representing one new share for every 10 shares held for new and existing shareholders respectively.
Here are the top 10 most capitalized banks as of September 2023:
Zenith Bank leads the list with approximately N1.92 trillion in shareholders’ funds, a notable increase from N1.31 trillion in 2022. The bank also holds the position of Nigeria’s highest profit generator in 2023 with a pre-tax profit of N505 billion.
United Bank for Africa (UBA) follows as the second most capitalized bank as of September 2023, with a total shareholders’ fund of N1.778 trillion, up from N922.1 billion in 2022, showcasing a capital adequacy ratio of 28.3 per cent at the end of FY 2022.
Access Holdings ranks as the third-largest bank in terms of capital base with a total equity of N1.64 trillion, compared to N1.231 trillion in 2022. Its Nigerian subsidiary, Access Bank, holds a total equity of N1.208 trillion as of September 2023, ensuring stability in case of any recapitalisation exercise.
The third quarter 2023 financial report of First Bank Holdings revealed a total equity of N1.37 trillion, with a capital base of N1.287 trillion. In 2022, the holding company posted a capital of 995.7 billion.
Ecobank reported a shareholders’ fund of N1.373 trillion for the third quarter of 2023, compared to N935 billion in the same period of 2022, securing the fifth position among the most capitalized banks.
GTCO Holdings witnessed a year-to-date increase of 36.7 per cent in its total equity, reaching N1.273 trillion from N931 billion at the start of 2023. Meanwhile, its Nigerian subsidiary, GTBank, holds a total capital base of N1 trillion as of Q3.
Stanbic IBTC Holdings, the Nigerian subsidiary of Standard Bank Group, disclosed a capital base of N471 billion in September 2023, compared to N407.7 billion in 2022.
FCMB holds a capital base of N373.7 billion as of September 2023, up from N275.8 billion in 2022, positioning as the 9th most capitalized bank.
Sterling Bank, a subsidiary of Sterling Financial Holdings, reported a capital base of N165.84 billion in Q3, compared to N154 billion in 2022.
With a capital base of N410.75 billion as of Q3 against N314.3 billion in 2022, Fidelity Bank remains well-positioned ahead of any recapitalisation exercise for banks. Additionally, in September 2023, the bank expanded its operations into international banking by acquiring the UK division of Union Bank of Nigeria.
