Fidelity Bank is currently defending itself against 58 lawsuits in which the bank has been sued and could be forced to pay N12 billion to the Plaintiffs, if it loses those cases.
The Bank is a party to legal actions arising out of its normal business operations.
As at reporting date, Fidelity Bank is currently involved in 58 lawsuits as defendant, up from 54 cases as at December 2021.
The total amount claimed against the Bank is estimated at N12.06 billion as at 31 December 2022 up 66% from N7.26 billion, as at 31 Dec 2021.
Based on the advice of the Bank’s legal team and the case facts, the management of Fidelity Bank estimates a potential loss of N849 million (31 Dec 2021: N623 million) upon conclusion of the lawsuits.
The bank has made a provision for the potential loss of N849 million.
“The Directors believe that, based on currently available information and advice of counsel, none of the outcomes that result from the proceedings will have a material adverse effect on the financial position of the bank either individually or collectively,” the bank said.