Fidelity Bank Plc has reported a surge in pre-tax profit, reaching N107.77 billion for Q1 2025, a 167.79% year-on-year (YoY) growth.
This performance signals a strong start to the year, driven by strategic growth in its core business and effective management of expenses.
According to the unaudited financial statement, gross earnings grew by 64.21% to N315.421 billion.
Key highlights (2024 vs. 2023)
- Interest Income: N281.468 billion +65.44% YoY
- Interest Expense; N90.653 billion +28.58% YoY
- Net interest income; N190.815 billion +91.52% YoY
- Credit loss expense: N6.281 billion; -49.17% YoY
- Net interest income after credit loss expense: N184.530 billion +111.45% YoY
- Fees and commission income: N23.822 billion +30.10% YoY.
- Fees and commission expense: N2.666 billion +37.56% YoY
- Profit for the period N91.101 billion +189.75% YoY
- Earnings per share N1.81; +84.69% YoY
- Loans and advances to customers N4.605 trillion +4.96%.
- Cash and Cash equivalents N1.619 trillion; +128.90%
- Total Assets N10.452 trillion +18.48%.
- Customers’ deposits N6.599 trillion +11.15%.
- Shareholders’ funds: N933.139 billion; +3.39YoY
Growth in core business
Fidelity Bank’s earnings were largely driven by higher interest income, which accounted for 89% of gross earnings.
The bank earned significantly more from loans and advances to customers, with interest income from loans contributing 75% of the total interest income.
Investment in securities also played a role, adding 18.31% to interest income.
While interest expenses rose due to higher deposit rates, they consumed just 32% of the interest income in Q1 2025, a significant improvement compared to 41.14% in Q1 2024.
This allowed Fidelity Bank to retain a larger share of earnings, resulting in stronger profitability.
Improved credit quality
Another standout feature of the results was the reduction in credit loss expenses, which dropped 49.17% to N6.28 billion from N12.37 billion in Q1 2024.
This indicates that the bank’s loan portfolio is performing better, with fewer bad loans and improving credit quality.
Non-lending income & fee growth
Beyond lending, Fidelity Bank also saw growth in its non-interest income, particularly from fees and commissions, which increased by 30.1% YoY to N23.82 billion.
Despite a decline in account maintenance fees, the bank saw a 57% increase in commission from travelers cheques and foreign bills, and a 23.38% rise in letters of credit commissions.
Balance Sheet
Fidelity Bank’s balance sheet shows solid growth. Customer deposits rose by 11.15%, reflecting strong customer confidence, while the bank attracted N661.95 billion in new deposits.
This influx of funds supported the growth of total assets by 18.48% to N10.45 trillion and a huge jump in cash reserves by 128.90%, reaching N1.62 trillion.
Stock performance
Fidelity began the year with a share price of N17.50 and has since gained 14%, ranking it 48th on the NGX in terms of year-to-date performance.
