Stock Market Rebounds as Access, FCMB, Fidelity Bank Begin Compliance
Kayode Tokede
Calm returned to the Nigerian equities market yesterday following spirited efforts by banks to reassure investors of their compliance with the Central Bank of Nigeria’s (CBN) directive on forbearance with the share price of Zenith Bank Plc, United Bank for Africa (UBA) and other banking stocks, witnessing massive rally.
Banks’ shares had plummeted at the beginning of trading activities this week following reports of the decisive return to orthodox monetary policy by the CBN and its roll out of stringent measures aimed at strengthening banks’ capital buffers, curbing regulatory forbearance abuses.
However, clarifications from major banks on their forbearances, single obligor limit (SOL) exposures, and steps being taken to abide by the CBN prudential guidelines triggered positive sentiment on the bourse.
At the close of trade, the stock price of Zenith Bank appreciated by 5.32per cent to close at N48.50 per share, while UBA’s stock price gained 5.59 per cent to close at N34.00 per share.
Access Holdings gained 4.49 per cent to close at N20.95 per share, as Fidelity Bank advanced by 1.92 per cent to close at N18.55 per share.
Also, the stock price of Guaranty Trust Holding Company Plc (GTCO) gained 4.43 per cent to close at N79.00 per share, while Stanbic IBTC Holding Plc grew by 0.63 per cent to close at N80.50 per share.
The banks reassured investors before trading commenced on the stock market yesterday, with the likes of Access Holdings, Zenith Bank, FCMB Group and Fidelity Bank, issuing statements explaining when they will exit the CBN’s forbearance regime.
In a statement filed with the NGX, Access Holdings stated that its banking subsidiary, Access Bank Plc was the first bank to meet and exceed the CBN’s N500 billion minimum capital requirement for commercial banks with international authorisation, and expected to comply by June 30, 2025.
On its part, Zenith Bank announced its readiness to fully exit the regulatory forbearance arrangements granted by the CBN by June 30, 2025, signalling a return to full compliance with all prudential requirements.
In a statement filed with the NGX, Access Holdings stated that its banking subsidiary, Access Bank Plc was the first bank to meet and exceed the CBN’s N500 billion minimum capital requirement for commercial banks with international authorisation, and expected to comply by June 30, 2025.
The company Secretary, Access Holdings, Mr. Sunday Ekwochi in the statement noted that the banking subsidiary of the Holding is currently compliant with the single obligor limit requirement as of the date herein and would continue to ensure adherence to this regulation.
“Regarding the regulatory forbearance on credit facilities, the Bank will comply with the apex bank’s directive by June 30, 2025, while maintaining strong capital buffers and paying dividend to its shareholders.
“We assure our esteemed shareholders and stakeholders of our commitment to delivering sustainable value in the immediate and long term and thank them for their trust and support over the years,” the statement by Ekwochi added.
The Company Secretary, FCMB Group, Funmi Adedibu in a statement, said the Group’s Nigerian banking subsidiary currently has loans under CBN forbearance (credit exposures to 3 entities and 2 obligors) amounting to N207.6 billion as at 31st May 2025 (down from N538.8 billion as at September 30th, 2024).
According to the statement, the loans are currently classified as Stage 2 loans, maintaining the Bank has made provisions for these loans over the last few years, and intensified resolution efforts have led to over 60 per cent reduction in its credit forbearance exposures.
“Once these loans exit the CBN forbearance regime, we anticipate that this would lead to an initial spike in Stage 3 loans to ~11.5per cent of the total loan book which would decline below 10per cent by the end of the financial year, based on anticipated loan book growth.
“The Bank has one (1) additional obligor (classified as a Stage 1 loan since drawdown to date) on the CBN forbearance for Single Obligor Limit (SOL). This Obligor will be brought within SOL limit by September 30th , 2025, following the conversion to equity of a recently concluded N23.1 billion Convertible Loan and audited nine (9) months projected retained earnings.
“The group has already received CBN approval for the capital verification of the Convertible Loan and we are currently processing the other regulatory approvals required. We intend to conclude this process, including downstreaming the capital proceeds to the Bank by the end of July 2025,” the statement added.
Also, Fidelity Bank Plc stated that it remains committed to ensuring compliance with regulatory policies and directives, including the CBN circular on forbearance, which is aimed at strengthening capital buffers and enhancing financial prudence within the banking industry.
“In terms of Capital, the Bank successfully raised N273 billion through a recent Public Offer and Rights Issue which were oversubscribed by 237.92% and 137.73% respectively and intends to raise the additional sum of ₦200 billion through a Private Placement in 2025FY, to achieve the new minimum regulatory capital requirement of ₦500 billion for banks with international authorisation. The CBN and Shareholders’ approval have been obtained for the Private
“Placement, while other regulatory approvals are being processed to ensure completion in 2025. The Bank’s exposure under the SOL forbearance relates to two obligors. We are confident that this exposure will be brought within the applicable regulatory limit in H1 2025. With respect to the forbearance granted on other credit facilities, the Bank confirms that this applies to four customers. We have proactively made substantial provisions on these facilities and have taken targeted and comprehensive steps to ensure full provisioning or return of the accounts to performing status by June 30, 2025,” the bank explained.
