Writer: ABHULIMHEN THERESA
Fidelity Bank Plc has completed the acquisition of Union Bank UK (UBUK), a subsidiary of Union Bank of Nigeria Plc, as part of its international expansion plan.
According to the bank’s board of directors, the acquisition of Union Bank UK, which was approved by the Bank of England’s Prudential Regulatory Authority, is expected to unlock significant value for the Fidelity Bank Group.
Fidelity Bank had earlier received a letter of no objection to the transaction from the Central Bank of Nigeria (CBN).
“The acquisition of UBUK is in furtherance of Fidelity Bank Plc’s strategic initiatives on international expansion,” the bank said in the statement.
Meanwhile, the shareholders of Fidelity Bank Plc will receive an interim dividend of 25 Kobo per share, amounting to N8 billion for the half-year financial period ended June 30, 2023.
The dividend payment is a testament to the bank’s strong financial performance in the first half of the year, as it grew its gross earnings by 59.6% to N247.1 billion, driven by a 39.4% growth in interest income and a 207.2% increase in non-interest income.
The bank’s total deposits also crossed the N3 trillion mark, as customer deposits grew by 23.2% year-to-date to N3.2 trillion from N2.6 trillion in the 2022 financial year.
Commenting on the bank’s performance, Nneka Onyeali-Ikpe, the Managing Director/Chief Executive Officer, Fidelity Bank Plc, said: “We are pleased to report on another period of quality growth across all financial and non-financial indices.
“Our performance during the first half of the year reflects the resilience of our bank and the fundamental strength of our business to deliver long-term sustainable value at a time that has been characterised by global economic headwinds.
“As a bank, we remain committed to our goal of helping individuals to grow, inspiring businesses to thrive and empowering economies to prosper.”
Union Bank Plc, which has also been acquired by Titan Trust Bank, said the divestment of UBUK was to enable it to focus on its core banking business in Nigeria.