The acquisition of Union Bank UK (UBUK) by Fidelity Bank has been finalised, according to a statement issued by the bank on Wednesday. The statement, which was filed with the Nigerian Exchange Limited, said that Fidelity Bank had obtained the approval of the Bank of England’s Prudential Regulatory Authority for the change of control of UBUK.
Fidelity Bank had announced its intention to acquire the UK-based subsidiary of Union Bank of Nigeria in August 2022. The deal, which was valued at N8.3bn, became effective on May 31, 2022, as stated in the 2022 annual reports of Union Bank of Nigeria.
“The acquisition of UBUK is in furtherance of Fidelity Bank Plc’s strategic initiatives on international expansion.”
The bank had earlier received a letter of ‘No Objection’ to the transaction from the Central Bank of Nigeria.
The Board of Directors of the bank expressed confidence that the acquisition will unlock significant value for the Fidelity Bank Group and stated that they are taking action to ensure the seamless integration of the operations of both entities.
The bank also declared an interim dividend of 25 Kobo per share for its shareholders, amounting to N8bn for the half-year financial period ended June 30, 2023. The bank recorded a 59.6 per cent increase in gross earnings to N247.1bn in H1 2023, driven by a 39.4 per cent growth in interest income and a 207.2 per cent increase in non-interest income as shown in the audited financial report.
The bank’s total deposits surpassed the N3tn mark as customer deposits grew by 23.2 per cent year-to-date to N3.2tn from N2.6tn in 2022 financial year.
Commenting on the bank’s performance, the Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe, 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.”
Recall that Titan Trust Bank had acquired Union Bank. This move according to the bank was to enable it to focus on its core banking business in Nigeria.