By Stanley Opara

Monday, 20 Dec 2010

Fidelity Bank Plc has said the best way to realise its growth potential and unlock value for its shareholders, is to concentrate on commercial banking, which it describes as the crux of the bank‘s strength.

The Chairman of the Board, Fidelity Bank, Chief Christopher Ezeh, said this at the bank‘s Extraordinary General Meeting in Lagos on Thursday.

The shareholders of the bank also approved a proposal by the board to opt for a commercial banking licence under the new licensing regime of the Central Bank of Nigeria.

The board and management was also given the approval to divest the bank‘s holding in its non-core subsidiaries in such manner as might be in the best interest of Fidelity Bank.

Ezeh said the intended divestment would enable the management of the bank to focus its energy on the bank‘s mainstay, which was commercial banking.

According to him, this will enable the bank to grow the franchise and also explore and exploit opportunities continuously presented by trade and traffic between Nigeria and Africa, Europe, Asia and the United States.

Commenting on the new banking model, Ezeh said the new regulations sought to promote a sound financial system and enable banks to hedge their risks by focusing on their core areas of competence.

“Your directors are of the opinion that the most effective way to ensure compliance, and at the same time realise our growth potential and unlock value for our shareholders, is to concentrate on commercial banking, the crux of our strength,” Ezeh stated.

He said the bank would apply to the apex bank for the commercial banking licence with an international scope and divest its equity interest in its subsidiaries, thereby enabling the management to focus its energy on commercial banking.

However, the Managing Director/Chief Executive Officer of the bank, Mr. Rejinald Ihejiahi, said, though, the bank was opting for an international banking licence, it would not relax on its strategy to carry everybody along in its activities.

He added that Nigerians should expect a better and more committed Fidelity Bank.

Source: Punch