Fidelity Bank Plc delivered a robust performance in the first quarter of 2025, with pre-tax profit soaring 167.79% year-on-year to ₦107.77 billion, reflecting a strong start to the year fueled by improved interest margins, credit quality, and solid balance sheet expansion.
🔑 Key Financial Highlights (Q1 2025 vs. Q1 2024):
- Gross Earnings: ₦315.42bn ▲ 64.21%
- Interest Income: ₦281.47bn ▲ 65.44%
- Interest Expense: ₦90.65bn ▲ 28.58%
- Net Interest Income: ₦190.82bn ▲ 91.52%
- Credit Loss Expense: ₦6.28bn ▼ 49.17%
- Net Interest Income after Credit Loss: ₦184.53bn ▲ 111.45%
- Profit Before Tax: ₦107.77bn ▲ 167.79%
- Profit After Tax: ₦91.10bn ▲ 189.75%
- Earnings per Share: ₦1.81 ▲ 84.69%
- Total Assets: ₦10.45tn ▲ 18.48%
- Customer Deposits: ₦6.60tn ▲ 11.15%
- Cash & Cash Equivalents: ₦1.62tn ▲ 128.90%
- Loans and Advances to Customers: ₦4.61tn ▲ 4.96%
- Shareholders’ Funds: ₦933.14bn ▲ 3.39%
📈 Core Business Momentum Driven by Interest Income
Fidelity Bank’s performance was anchored by strong interest income, which accounted for 89% of total gross earnings, largely fueled by lending activities. Interest income from loans contributed 75% of total interest income, with investment securities adding a further 18.31%.
Despite rising deposit costs, interest expenses only consumed 32% of interest income, down from 41.14% in Q1 2024—indicating improved interest margins and efficient cost management.
✅ Credit Losses Drop, Reflecting Improved Loan Quality
The bank reported a significant 49.17% decline in credit loss expenses, highlighting better asset quality and fewer defaults across its loan portfolio. This improvement helped boost net interest income after impairment to ₦184.53 billion, a 111.45% YoY rise.
💳 Steady Non-Interest Income and Fee Diversification
Non-lending income also contributed positively, with fees and commissions growing 30.1% YoY to ₦23.82 billion. Despite a drop in account maintenance fees, growth was recorded in commission on travelers cheques (+57%) and letters of credit (+23.38%), showing diversification in non-interest income sources.
🏦 Stronger Balance Sheet, Liquidity Gains
Fidelity attracted ₦661.95 billion in new deposits, reflecting 11.15% YoY growth in customer deposits and rising customer confidence. This supported an 18.48% increase in total assets and a remarkable 128.90% jump in cash reserves, bolstering the bank’s liquidity position.
📌 Outlook
With a strong capital base, expanding balance sheet, improving credit risk profile, and rising income from core banking operations, Fidelity Bank is well-positioned to sustain its momentum in subsequent quarters. The strategic balance between interest income growth, controlled expense expansion, and credit risk management makes this a standout performance in Nigeria’s banking sector for Q1 2025.
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