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Fidelity Bank set for N29.6bn rights issue, N97.5bn public offer

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CBN revokes Heritage Bank’s licence

Fidelity Bank Plc said it has concluded all necessary arrangements to raise a total of up to N127.100billion by way of a Rights Issue to existing shareholders and a Public Offer (the Combined Offer).

The Combined Offer is a part of the bank’s strategy to increase its share capital base in compliance with the revised minimum capital requirements for Nigerian commercial banks introduced by the Central Bank of Nigeria (CBN) on March 28, 2024. Overall, the Bank expects that the capital raised would support the Bank’s efforts to drive sustained growth and diversification of its earnings base.

The Signing Ceremony with respect to the Combined Offer was held at the Board Room of the headquarters of Fidelity Bank in Lagos on Wednesday June 5, 2024.

The bank’s shareholders had already approved the Rights Issue and Public Offer at the Extra-Ordinary General Meeting held on Friday, 11 August 2023. Under the Rights Issue, 3.2 billion ordinary shares of 50 kobo each will be offered in the ratio of 1 new ordinary share for every 10 ordinary shares held as of 05 January 2024, at N9.25 per share. For the Public Offer, 10 billion ordinary shares of 50 kobo each will be offered to the general investing public at N9.75 per share.

Stanbic IBTC Capital is the Lead Issuing House to the Combined Offer, whilst the Joint Issuing Houses include Iron Global Markets Limited, Cowry Asset Management Limited, Afrinvest Capital Limited, FSL Securities Limited, Futureview Financial Services Limited, Iroko Capital Market Advisory Limited, Kairos Capital Limited and Planet Capital Limited. The Acceptance and Application lists for the Rights Issue and Public Offer are expected to open on Thursday, 20 June 2024 and close on Monday, 29 July 2024.

At the Signing Ceremony, Nneka Onyeali-Ikpe, Managing Director and Chief Executive Officer, Fidelity Bank Plc said that the proceeds of the Combined Offer will be applied towards investment in IT infrastructure, business and regional expansion, and investment in product distribution channels.

Oladele Sotubo, Chief Executive of Stanbic IBTC Capital commended Fidelity Bank’s management team for their commitment towards executing the Combined Offer. He lauded their efforts for being at the forefront of achieving the CBN’s revised minimum capital requirements for Nigerian commercial banks. While thanking the Bank for trusting Stanbic IBTC Capital to lead and advise on this landmark transaction, Dele expressed confidence that the deal would encourage other corporates to tap into the equity capital markets to raise funding to meet their strategic business needs.

The Rights Circular for the Issue, which contains a Provisional Allotment Letter and the Participation Form, will be mailed directly to shareholders of the Bank. Printed copies of the Public Offer Prospectus can be obtained at the offices of Fidelity Bank and the Issuing Houses during the Public Offer Application Period.

All existing shareholders and prospective investors are encouraged to read the Rights Circular and Prospectus and, where in doubt, consult your Stockbroker, Fund/Portfolio Manager, Accountant, Banker, Solicitor, or any other professional adviser for guidance before subscribing.

Source: Business day

 

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Banking

Inside GTBank… Billions allegedly raked in as customers accounts debits with unauthorised transactions

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Customers of Guaranty Trust Bank (GTB) have taken to the social media to condemn the decision of the bank to deduct a ‘CT miscellaneous

Customers of Guaranty Trust Bank (GTB) have taken to the social media to condemn the decision of the bank to deduct a ‘CT miscellaneous transaction levy’ from their accounts.

Tagged “Other Transaction, 101CT” in some other cases, the widespread development has the bank withdrawing amounts like N100, N300, N2,000, N5,000, N10,000, N20,000, and more from the accounts, which the customers say is unauthorised.

Osun Defender gathered that in the last few weeks, customers of the bank have expressed a series of complaints over the poor service of the bank, with today’s development striking more public outcry.

A X user, @MizBee30 wrote: Na only me @gtbank debit with Caption MTN? Still Dey put question mark for the transaction as if I no wetin una commot am for. Y’all should return my 5,500 oh! I wan cook stew

@GodsgreatG said, Dear @gtbank @gtbank_help an unauthorised transaction has been made on my account with no description whatsoever. The money must be refunded, as this is a criminal act.’

@gtbank_help @gtbank I won’t even drag anything much with you guy. Once I write officially to you guys and nothing is done, I am taking legal action against you guys. Sebi una no wan get sense Abi

@mello321 said, ‘Gtbank no work for like 15 days. Now them dey comot ridiculous fee from people’

@Holar_dwayne @gtbank @gtbank_help wrote: what’s this fraud? What is CT ? You people just deduct money anyhow these days.

@I_am_Foatchrist stated that: @gtbank @gtbank_help you people had better tell whoever deducted my money to return it just the way they took it ASAP.

@VIjagbone wrote: @gtbank why did you deduct money from my account, for no reason. A whole 3k in this hard economy. Please you people should not look for trouble oo, return my money ooo

@Daniel247emj noted, “@gtbank please I’m trying to understand what this 2000 naira withdrawal you made on my account today and it said miscellaneous. Please make me understand what is going on because I know I didn’t buy anything and this is the second time it’s happening but thought it was an error.”

Also, @Chimpo_lee who had stopped using the account a few days ago, was debited in the unauthorised transaction spree, saying ‘@gtbank I stopped using you 3 days ago una still dey debit me💀’

As of the time of filing this report, GT Bank had yet to either officially comment on the development to its customers or attend to any complaints from them.

Sodiq Yusuf is a trained media practitioner and journalist with considerable years of experience in print, broadcast, and digital journalism. His interests cover a wide range of causes in politics, governance, sports, community development, and good governance.

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Banking

The misery of GTBank… How N2.5 million kept in customer’s account got missing with unused ATM card

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A sinister trend is taking root under the polished veneer of Guaranty Trust Bank’s modern facades and its acclaimed reputation for financial

While Damilare Abiodun Atobatele, an Ibadan-based businessman, was asleep on November 8, 2023, N1.6 million was transferred in multiple transactions from his current account to his savings account, where it was later used to make purchases on the internet, as reported by FIJ.

These transactions were performed without his consent, leaving the businessman baffled.

When he woke up and saw the debit alerts the following morning, he went to lodge complaints at a Guarantee Trust Bank (GTB) branch in Bodija, Ibadan.

“They moved my money from my current account to my savings account and moved it elsewhere. When I went to lodge complaints at the bank, I was told I authorised the transactions using my ATM card details. I was shocked because I didn’t initiate them,” Atobatele told FIJ.

Atobatele’s savings account shows N1.5 million being used for multiple web purchases via Paystack.
Atobatele’s savings account shows N1.5 million being used for multiple web purchases via Paystack.

Atobatele’s statement of account shows N1.5 million was used for multiple web purchases via Paystack.

He added that he changed his ATM card at the bank that day and blocked the old one to avoid a recurrence. These unauthorised transactions did not end here for Atobatele.

“On November 15, multiple debit transactions that totaled N950,000 left my current account to my savings account again and were also used to make purchases online like the last time. When I went to complain at the bank again, they said it was done using my ATM card details,” he said.

“How could that have happened with a new ATM card that I collected the week before and had not used anywhere at the time? My brother helped me write letters to the bank, which they acknowledged. I haven’t heard anything from them since then.”

FIJ contacted GTB on Monday, but they did not respond.

ThePAPERS reports that GTBank has been the subject of many controversy in the recent time, from the hidden threats moving around the bank’s branches through tellers to security guards, where customers questioned the integrity of the bank directors at the top.

 

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Banking

CBN reveals stance on revoking licenses of Fidelity, Wema, Polaris, Unity Bank

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The Central Bank of Nigeria has released a comprehensive list of licensed Deposit Money Banks operating within the country.

The Central Bank of Nigeria has said there is no plan to revoke the licenses of Fidelity, Wema, Polaris and Unity Banks.

The acting Director of the Corporate Communications Department, Mrs Hakama Sidi Ali, on Monday, made this clarification in a statement.

Recall that a circular made the round on Monday suggesting that the apex bank has dissolved the boards of the three banks barely after revoking the license of Heritage Bank.

However, the apex bank spokesperson described the claim as false.

CBN reassured members of the banking public of the safety of their deposits and the banking system’s resilience.

“Without prejudice to the ongoing recapitalization process, I want to restate that the Nigerian banking industry remains resilient.

“Key financial soundness indicators remain within current regulatory thresholds.

“Customers are, therefore, encouraged to proceed with their transactions as usual, as the CBN is committed to ensuring the safety of the banking system,” she stated.

On June 3, CBN announced the withdrawal of license for Heritage Bank over poor financial performance.

To quell public panic, the Nigerian Deposit Insurance Corporation, NDIC assured Heritage Bank depositors that it had already begun the process of repaying their money.

 

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Banking

EXPOSED: The hidden threat of GTBank’s tellers, security; how aggressors drive customers away

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A sinister trend is taking root under the polished veneer of Guaranty Trust Bank’s modern facades and its acclaimed reputation for financial

A sinister trend is taking root under the polished veneer of Guaranty Trust Bank’s modern facades and its acclaimed reputation for financial acumen and corporate responsibility. The very individuals entrusted with safeguarding and serving customers—cashiers and security personnel—are becoming the bank’s internal menace. This growing undercurrent of hostility is threatening to dismantle the trust GTBank has painstakingly built over the years.

Imagine stepping into the hallowed halls of Guaranty Trust Bank, anticipating the seamless banking experience the institution is known for. Instead, you are greeted with an unsettling spectacle: tellers who eye your every move, ready to pounce with a mix of beggary and belligerence, and security guards whose protectiveness morphs into menacing extortion. This is the new, disconcerting reality for customers at GTBank’s Lagos branches.

Suppose Guaranty Trust Bank has built its solid reputation on financial wizardry and corporate social responsibility. In that case, the growing obnoxiousness of the tellers at its different branches in Lagos may be the bad deed that could bring all its good deeds into disrepute.

Indeed, the bank is earning another kind of reputation its promoters may be oblivious to – its tellers, some of whom investigations revealed are becoming a menace to their customers and, by extension, the society. In the last couple of weeks, not a few customers have openly complained about the beggarly and abusive disposition of the tellers who count depositors’ money.

A particular customer disclosed the modus operandi of the tellers thus: “When you enter into the banking hall, their eyes are on you, watching whether you came to withdraw or not. When you bring out the money, their eyes light up, they raise their hands in the manner of ‘Area Boys’ and would be all over you, curtseying and genuflecting and singing your praises, not minding whether they are much older. Woe betides you if you failed to ‘drop’. Instantly, they turn the praises to outright abuses, wondering aloud how miserly one is with their money, and you would be left wondering whether you are under any compulsion to part with your money.” The customer said no branch is absolved from this practice in Lagos.

Another customer disclosed that the GTB security personnel equally have perfected the art of mendicancy to an embarrassing level. With a narrative similar to the above, he added, “It is even worse when you are a regular face at a particular branch and you are noted for not giving them money. They will hardly ever find you a space to park your car and when you do find one yourself, efforts would be made to prevent you from doing so. If you were adamant, the kind of words they would rain on you would make you regret banking at that branch. This is a menace that if the bank does not quickly nip in the bud may turn many customers away.”

However, it is often said that there is no animal in the world, other than the gentle human, who is so dominated that when asked to labour while hungry for even the smallest amount of food that is poor in nutrition, they do it gladly.

And that, perhaps, sums up the situation of the tellers and security guards at GTBank branches. Hungry and broke, they seek food unabashedly and with a predatory instinct.

An insurance executive who preferred not to be named explained how she had gone to the Town Planning Way, Ilupeju branch of Wema Bank to make a withdrawal and was scared shitless by her experience.

As she made to drive out of the parking lot, she said that a security guard came to her side, tapped on the window and reminded her that they were the ones watching over her car. “He didn’t stop there,” she recalled, adding, “he then said that it would be wicked of me to leave without tipping them. I was shocked, of course, but I gave him N500. I don’t know what gave him the boldness to talk that way. But I quickly reflected that these people could arrange with outsiders to rob me on my way. I plan to register my displeasure with the bank.”

Indeed, no Nigerian bank, customers allege, is immune from this untoward trend which they concur is borne out of the pocket-money wages they receive. “These are grown men and women with families and they earn what I’d give my kid for tidying their bedroom,” she said. She implored bank CEOs to look into the situation before it turned ugly saying, “At the rate these guys are going, they might be the ones with guns robbing people openly at the ATMs.”

Horrid Experiences of Customers:
A business owner, Mr. Tunde, recounted a particularly harrowing experience at the Ikoyi branch. “I went in to make a substantial withdrawal for payroll. As soon as the teller saw the amount, her demeanor changed. She kept hinting that I should show appreciation. I was already running late, so I ignored her. By the time I got back to the office, I realized that she had shorted me several thousand naira. When I went back to complain, she acted as if she didn’t recognize me and refused to help. It was only after I threatened to involve the branch manager that she reluctantly corrected the error. But the whole experience was humiliating.”

Ms. Ada, a teacher, shared a similarly disturbing incident at the Ikeja branch. “I went to deposit some money and the teller was very friendly at first, asking about my day and making small talk. But then she asked if I could ‘spare something small’ for her. When I politely declined, citing my tight budget, her friendliness evaporated. She became cold and deliberately slow, handling my transaction as if she had all the time in the world. Other customers were served before me, even those who arrived after I did. It was clear she was punishing me for not tipping her.”

Mr. James, a retiree, faced a different kind of intimidation at the Victoria Island branch. “Every time I visited to withdraw my pension, the security guards would crowd around my car, demanding tips for helping me park. On one occasion, when I didn’t have any change to give them, they blocked my car and wouldn’t let me leave until I handed over some money. They even threatened to report me for creating a scene. It was terrifying, especially for someone my age.”

The distressing accounts from customers reveal a dark and growing crisis within the walls of GTBank. As the pressures of inadequate wages push tellers and security guards towards unprofessional and aggressive behavior, the once hallowed banking experience turns nightmarish. Guaranty Trust Bank must address these internal challenges with urgency and empathy, ensuring that the integrity of its service remains untarnished. Only then can it hope to sustain the trust and respect of its clientele, securing its legacy for the future.

-TheCapital

 

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Banking

NDIC to name, shame Heritage Bank’s debtors

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NDIC to name, shame Heritage Bank’s debtors

There were indications yesterday that the Nigeria Deposit Insurance Corporation (NDIC), which liquidated Heritage Bank loan defaulters, will soon publicise their names.

Also, the executives and board members found complicit in the bank’s collapse are to be blacklisted by the NDIC.

The decisions, said a source in the corporation, would help enforce discipline and accountability in the financial sector of the Nigerian economy.

The Nation learnt that the “name and shame” strategy was designed to curb delinquencies and encourage a more responsible borrowing culture by bank customers.

The source said: “Those who default in their loans can expect to be identified and potentially face significant reputational damage.

“Our name and shame policy is part of broader efforts to enhance accountability and transparency within the industry.

“The decision to publicly identify defaulters is not taken lightly. It is a necessary step to ensure that borrowers understand the consequences of their actions and to prevent similar situations in the future.”

Under the amended NDIC Act, the corporation can prosecute any borrowers who default in paying their loan. If convicted, such borrowers would pay up to N10,000,000 fine or go to jail for five years, or both.

Errant corporate borrowers face even stiffer fines and additional daily penalties.

Some sections of the Act states that:

*The corporation can blacklist bank executives and board members deemed responsible for the collapse of a financial institution. When blacklisted, such individuals will no longer hold similar positions in any other bank in the country; and

*NDIC can recover debts owed to failing or failed insured institutions. If an obligor neglects or refuses to repay a debt secured by a mortgage, the NDIC can take possession of and dispose of the property to satisfy the debt. This includes selling, transferring, or managing the property in question.

Last week’s withdrawal of Heritage Bank’s licence by the Central Bank of Nigeria (CBN) raised fresh concern about the stability of Nigeria’s banking sector and the conduct of its key players.

Source: NDIC

 

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Banking

CBN denies plans to revoke Unity, Polaris, Keystone banks’ licences

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The Central Bank of Nigeria has released a comprehensive list of licensed Deposit Money Banks operating within the country.

The Central Bank of Nigeria has denied plans to revoke the licenses of Unity Bank, Polaris Bank, and Keystone Bank.

“The content is fake and not from the CBN.”

Online reports had claimed that the apex bank would terminate the licenses of the three banks, following the revocation of Heritage Bank’s license.

However, the CBN has debunked this claim in a post on its social media handles, stating that it has no plans to do so.

PUNCH Online reported that the CBN had revoked Heritage Bank’s license, citing the bank’s inability to improve its financial performance.

“The Board and Management of the bank have not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability,” the bank said.

The CBN added that Heritage Bank had not shown any prospects of recovery, making the revocation of its license necessary.

The Nigeria Deposit Insurance Corporation has been appointed as the liquidator of the bank, in line with Section 12 (3) of the Banks and Other Financial Act 2020 and has begun the process of repayment of deposits to customers already.

 

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