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  • Business - Banking & Finance
  • Updated: July 06, 2020

Mustafa Chike-Obi Takes Over Fidelity Bank As Investors Confidence Fluctuate

Mustafa Chike-Obi Takes Over Fidelity Bank As Investors Conf

Fidelity Bank has appointed, Mustafa Chike-Obi, the former chief executive officer of the Asset Management Corporation of Nigeria (AMCON), to become the chairman of the financial institution, a statement obtained by AllNews disclosed. His appointment comes at a period investors' confidence in Fidelity Bank is fluctuating.

He will be replacing Ernest Ebi, who took over the role four years ago. Ebi was appointed in 2016 but exited Fidelity Bank after he completed his tenure. While speaking about Fidelity Bank's performance under him, Ebi said the incorporation of technology into the operation of Fidelity Bank is yielding result and he's confident that his successor, Chike-Obi, will maintain the growth. Ebi will exit Fidelity bank in August 2020.

“I feel that the management team has consolidated on our plans to become one of the fastest-growing banks in the country strongly rooted in technology only comparable with the best in the world. I am confident that my successor will continue on that path to take the bank to its next stage of growth and advancement. I wish my successor, the management team, and the entire staff of Fidelity Bank the very best for continued success.”

However, Ebi wasn't the only top executive whose tenure came to an end, as an independent non-executive director, Seni Adetu, also completed his tenure as well. Both Ebi and Adetu's tenure came to an end in line with the Fidelity Bank’s internal governance policy.

What You Need To Know About Fidelity Bank's New Chair

Chike-Obi is the first chief executive officer of AMCON after the debt recovery organisation was created to assist banks with non-performing loan assets following the 2008 global financial crisis. It was gathered that Chike-Obi has over 40 years of experience in investment banking.

Prior to his appointment, Chike-Obi was and still is the executive vice-chairman at Alpha African Advisory. Commenting on the appointment, Fidelity Bank said, "The Board is also pleased to announce that the retiring Chairman will be succeeded by Mr. Mustafa Chike•Obi. The Central Bank of Nigeria has approved the appointment. Mr. Chike-Obi is Executive Vice Chairman at  Alpha African Advisory. He hes over 40 years of experience in investment banking and the financial services sector, working with reputable global investment banking and asset management firms.

"He provides overall leadership at Alpha African Advisory and has direct oversight over the capital raising division. Prior to joining Alpha African Advisory, he was the inaugural CEO of the Asset Management Corporation of Nigeria lAMCON), a  Federal Government-backed institution, established to resolve the problem of non-performing loan assets of Nigerian Banks of the 2008 global financial crisis," AllNews gathered from the statement.

Investors Confidence In Fidelity Bank Fluctuating

AllNews discovered that the stocks of Fidelity Bank has been rising and falling irregularly, exposing the level of confidence investors have in the bank's stocks. The investors' confidence has been fluctuating amid the negative impact of coronavirus on the financial sector. The industry is one of the most hardest hit as banks had to review their operational strategy, paying extra focus on their digital banking to serve customers amidst a long shutdown.

Also, the impact of the pandemic on other sectors like oil & gas, hospitality and major sectors led to bad debt and non-performing loans - All these could have dampened investors' confidence. A check on the stock performance of Fidelity Bank traced the fluctuation to over a month. The highest Fidelity Bank's stock price has climbed is N1.87 kobo per share on June 10, 2020, but has since declined to as low as N1.65 kobo per share, before closing last week's trading with N1.67 kobo per share. But as at the time of filing this report, the stock is trading at N1.70 kobo per share.

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