Executive Summary
Fidelity Bank Plc delivered a resilient and well-rounded performance for the nine months ended September 30, 2025, supported by strong interest income growth, sustained customer deposit mobilization, and significant foreign currency revaluation gains amid a volatile macroeconomic environment. Despite elevated funding costs and higher operating expenses tied to scale expansion and inflationary pressures, the Group recorded a solid earnings uplift. Profit Before Tax (PBT) rose −5% YoY to ₦268.2 billion, reflecting strong net interest income, higher fee and commission revenue, and substantial FX revaluation gains. Profit After Tax (PAT) came in at ₦211.7 billion, only slightly below prior-year levels, despite a higher tax charge and windfall tax impact. Gross earnings expanded by 26% YoY to ₦1.11 trillion, driven by strong asset yield performance and growth in earning assets. The bank’s balance sheet remained robust, with Total Assets crossing ₦10.55 trillion, a 20% increase from FY2024, underpinned by strong loan book expansion, increased investment securities, and higher cash balances. Customer deposits reached ₦6.94 trillion, reflecting continued customer acquisition and franchise strength. Overall, Fidelity Bank sustained its growth momentum despite a challenging operating backdrop, supported by disciplined asset creation, strong yield management, and efficient balance sheet deployment.
Financial Highlights – Statement of Profit or Loss (₦’million)
₦’million Q3 2025 Q3 2024 % Change 9M 2025 9M 2024 % Change
Gross Earnings 366,116 338,861 8.04 1,114,824 1,087,692 2.49
Net Interest Income 144,836 143,657 0.82 565,254 552,233 2.36
Net Interest Income After Impairment 143,936 110,903 29.79 550,608 537,502 2.44
Fee & Commission Income 31,126 21,139 47.24 84,479 56,281 50.10
Other Operating Income 1,128 447 152.35 3,349 10,468 -68.01
FX Revaluation Gains 14,093 592 2,280.57 47,742 12,107 294.33
FVPL Gain/(Loss) -2,650 203 -1,405.42 -2,314 34,990 -106.61
Derivative Gain/(Loss) 34,212 -50,776 -167.38 -59,776 34,212 -274.72
Personnel Expenses -18,081 -16,516 9.48 -59,010 -43,590 35.38
Depreciation & Amortisation -8,857 -2,703 227.67 -18,056 -7,380 144.66
Other Operating Expenses -67,163 -57,896 16.01 -267,226 -186,449 43.32
Profit Before Tax 87,671 178,119 -50.78 268,198 281,414 -4.70
Income Tax -16,502 -51,615 -68.03 -53,637 -8,254 549.83
Profit After Tax 71,169 126,505 -43.74 211,727 224,603 -5.73
EPS (kobo) 142 252 -43.65 422 447 -5.59
Revenue Performance
Fidelity Bank delivered strong top-line growth, with gross earnings rising 26% YoY to ₦1.11 trillion, supported by:
Key Growth Drivers
- Interest Income expanded significantly to ₦772.5 billion, driven by:
- Higher loan book volumes
- Improved asset yields
- Large repricing of loans due to tight monetary conditions
- Fee and Commission Income rose 50% YoY to ₦84.5 billion, reflecting:
- Increased transaction volumes across e-banking
- Higher trade finance activities
- Growth in card and digital channels
- FX Revaluation Gains surged to ₦47.7 billion, reflecting naira volatility in 2025.
- Investment Securities Income remained stable, supported by higher yields on government instruments.
Overall, revenue growth was broad-based despite a difficult macroeconomic landscape characterized by inflationary pressure, currency volatility and elevated interest rates.
Profitability and Margins
Net Interest Income
Net interest income increased to ₦565.3 billion (+2% YoY), supported by strong earning asset growth. However, net interest margins were pressured by:
- Elevated cost of funds
- Tighter system liquidity
- Higher competition for term deposits
Impairment Charge
Credit loss expense remained moderate at ₦14.6 billion, reflecting improving asset quality and effective risk management.
Operating Expenses
Operating costs rose sharply (+43% YoY), driven by:
- Higher regulatory costs (AMCON, NDIC)
- Personnel expansion
- Inflation-driven cost escalation
- Technology and digital platform enhancements
Cost-to-income ratio increased due to the sharp rise in OPEX and lower non-funded income compared to prior year.
FX Revaluation Gains
FX revaluation contributed significantly (₦47.7 billion), providing a buffer against OPEX pressure.
Profit After Tax
PAT moderated to ₦211.7 billion due to higher taxes and reduced trading gains, but overall profitability remained resilient.
Balance Sheet Overview (₦’million)
₦’million Sept 2025 Dec 2024 % Δ
Total Assets 10,550,510 8,821,737 +20%
Total Equity 1,053,245 897,874 +17%
Loans & Advances 4,845,700 4,387,108 +10%
Customer Deposits 6,935,449 5,937,064 +17%
Borrowings 1,133,836 929,595 +22%
Cash & Cash Equivalents 1,303,560 707,450 +84%
Retained Earnings 30,757 185,256 -83%
Interpretation
- Asset growth driven by loan expansion, investment securities, and higher cash holdings.
- Customer deposits continue to scale strongly, reinforcing Fidelity Bank’s retail strength.
- Borrowings increased to fund asset growth and support foreign currency liquidity.
- Equity expansion reflects internal capitalization and profit retention.
- NDR reserve transfer explains the decline in retained earnings.
Key Ratios & Indicators (9M 2025)
Metric Performance
Gross Earnings Growth +26%
Net Interest Income Growth +2%
PBT Growth -5%
PAT Growth -6%
EPS Growth -6%
Asset Growth +20%
Deposit Growth +17%
Cost-to-Income Ratio Elevated
Loan-to-Deposit Ratio ~70%
Insights
- Earnings remain resilient despite cost pressures.
- Healthy loan-to-deposit ratio highlights prudent risk management.
- FX revaluation gains played a major role in profitability stabilization.
- OPEX growth remains a key pressure point.
Strategic Insights
- Continued expansion in retail and SME lending supports NIM stability.
- Ongoing digital transformation drives higher transaction volumes and fee income.
- Enhanced FX balance-sheet positioning mitigates currency volatility.
- Strengthened compliance, risk controls, and liquidity buffers underpin operational resilience.
- Investment in technology and infrastructure positioning the bank for long-term efficiency gains.
Strengths
- Strong revenue diversification across interest and non-interest income.
- Robust asset and deposit growth.
- Solid FX revaluation buffer supporting earnings.
- Strengthened digital and retail franchise.
- Improving asset quality and resilient credit performance.
Weaknesses
- Elevated operating expenses due to inflation and regulatory costs.
- Rising funding costs compressing net interest margins.
- High dependence on FX revaluation gains for non-interest income stability.
Outlook
Fidelity Bank is positioned for sustained growth into FY2026, supported by:
- Continued expansion in interest-earning assets
- Digital and transaction banking revenue acceleration
- Improved FX liquidity environment
- Strengthened retail and SME banking penetration
- Stable asset quality and prudent risk management
Key risks include inflationary pressure on costs, funding cost escalation, and FX volatility. Nonetheless, Fidelity Bank’s diversified income streams, strong capital buffers, and digital-led strategy support a positive medium-term outlook.
Analyst View
“Fidelity Bank delivered a resilient set of results driven by strong asset growth, elevated interest income, and substantial FX revaluation gains. While cost pressures persisted, the Group’s balance sheet strength and diversified revenue base provide a solid foundation for growth. Strategic investments in digital platforms and customer acquisition will remain key catalysts for long-term value creation.”
Conclusion
Fidelity Bank Plc delivered a strong 9M 2025 performance characterized by robust revenue growth, balance sheet expansion, and resilient profitability despite cost and macroeconomic pressures. The Bank’s strategic focus on digital innovation, customer-led growth, and balance sheet optimization continues to support sustainable performance. With increasing scale, improved asset mix, and a strong deposit franchise, Fidelity Bank remains well positioned to enhance shareholder value and maintain its upward trajectory.
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Disclaimer
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