FidelityBank has experienced a significant decline in its market capitalization, dropping from ₦320.12 billion to ₦259.29 billion a loss of approximately ₦60.82 billion. This downturn follows the imposition of a ₦555.8 million fine by the Nigerian Data Protection Commission (NDPC) for alleged violations of data privacy laws.
NDPC’s Allegations and Fidelity Bank’s Response
The NDPC levied the fine, amounting to 0.1% of Fidelity Bank’s 2023 gross revenue, citing breaches of the Nigeria Data Protection Regulation (NDPA) of 2023. The commission accused the bank of processing personal data without informed consent and relying on non-complaint third-party data processors.
Fidelity Bank has disputed these allegations, asserting that it adheres to the highest ethical standards and complies fully with data protection laws. The bank stated that the alleged breach involved an online account opening request that was not completed due to incomplete documentation, and therefore no operational account was created.
Financial Performance Amidst Legal Challenges
Despite the recent fine and market capitalization decline, Fidelity Bank reported robust financial performance in 2023. The bank’s pre-tax profit rose from ₦30.35 billion in 2019 to ₦124.26 billion in 2023, marking a 309.4% increase. Net profit after tax also grew by 203.3% during the same period.
However, the bank faces additional legal challenges. As of December 31, 2023, Fidelity Bank was involved in 65 cases as a defendant, with total claims estimated at ₦11.74 billion.
Investor Confidence And Regulatory Compliance
The recent fine and ongoing legal issues have raised concerns among investors regarding Fidelity Bank’s regulatory compliance and risk management practices. Analysts suggest that the bank must take proactive measures to address these chllenges to restore investor confidence and stabilize its market position.
