Executive Summary
Fidelity Bank Plc delivered a resilient performance for the six months ended 30 June 2025, demonstrating strong net interest income growth and effective cost management, despite a modest rise in credit loss provisions. Group gross earnings rose 46% year-on-year to ₦748.71 billion (6M 2024: ₦512.80 billion), underpinned by growth in loans and advances and improved interest income. Net interest income grew 57% YoY to ₦406.76 billion, while net interest income after credit loss expense remained robust at ₦351.06 billion. Fee and commission income, along with other operating income, contributed an additional ₦105.0 billion, supporting profitability. Profit After Tax reached ₦212.92 billion, up 17% YoY, reflecting disciplined expense management and efficient operational execution. Fidelity Bank’s balance sheet strengthened further, with total assets rising 14% to ₦10.05 trillion and total equity growing 9% to ₦975.64 billion, reflecting robust capital adequacy, deposit growth, and strategic asset deployment.
Financial Highlights
₦’000 6M 2025 6M 2024 % Δ YoY
Gross Earnings 748,707,000 512,804,000 +46%
Net Interest Income 406,762,000 259,047,000 +57%
Net Interest Income after Credit Loss Expense 351,055,000 337,719,000 +4%
Fee & Commission Income 53,352,000 51,642,000 +3%
Other Operating Income 51,642,000 63,160,000 -18%
Operating Expenses (146,887,000) (114,820,000) +28%
Profit Before Tax 259,047,000 200,872,000 +29%
Profit After Tax 212,924,000 181,180,000 +17%
Total Comprehensive Income 212,924,000 181,180,000 +17%
EPS (₦) 2.04 1.85 +10%
Earnings and Operational Performance
• Net interest income growth reflects robust loan book expansion and effective interest rate management.
• Fee and commission income remained steady, demonstrating resilience in transactional banking services.
• Other operating income declined 18%, reflecting lower trading and investment gains, offset by strong core banking performance.
• Operating expenses increased moderately (+28% YoY), reflecting strategic investments in digital banking and branch network expansion.
• Profitability remained healthy with a net profit margin of 28% and an ROE of 21.8%, supported by cost control and operational efficiency.
Balance Sheet Overview
₦’000 30 Jun 2025 31 Dec 2024 % Δ
Total Assets 10,051,160 8,821,737 +14%
Cash & Cash Equivalents 1,349,217 707,450 +91%
Loans & Advances 4,854,507 4,346,049 +12%
Investment Securities 1,800,000 1,471,024 +22%
Property, Plant & Equipment 152,443 77,876 +96%
Deposits from Customers 7,204,007 5,917,064 +22%
Borrowings 705,678 929,595 -24%
Total Equity 975,643 897,874 +9%
Interpretation:
• Strong deposit growth provides a stable funding base for lending expansion.
• Asset growth reflects strategic deployment into loans, cash, and investment securities.
• Equity increase supports capital adequacy and operational resilience.
• Reduction in borrowings lowers financial leverage and improves funding efficiency.
Operational Highlights
• Lending and Credit Management: Growth in loans and advances drove net interest income expansion, while proactive credit loss provisioning maintained asset quality.
• Transaction Banking: Fee income from retail and corporate banking remained resilient, supporting non-interest income diversification.
• Capital Deployment: Investments in digital banking platforms and branch infrastructure support future operational efficiency.
• Cost Efficiency: Operating expense discipline helped preserve margins despite rising investment and provisioning costs.
Key Ratios
Ratio 6M 2025 6M 2024 Change
Net Interest Margin (NIM) 7.1% 6.2% +0.9pp
Operating Profit Margin 34% 32% +2pp
Net Profit Margin 28% 26% +2pp
Return on Equity (ROE) 21.8% 20.1% +1.7pp
Asset Growth +14% +10% +4pp
Equity Growth +9% +6% +3pp
Strengths
• Robust net interest income growth driven by loan book expansion.
• Healthy balance sheet, with strong equity and rising deposits.
• Effective cost management and operational efficiency preserving profitability.
• Diversified revenue streams from fees, commissions, and investment income.
Weaknesses
• Slight decline in other operating income, reflecting volatility in trading and investment gains.
• Rising operating expenses could pressure margins if revenue growth slows.
• Exposure to macroeconomic conditions, including interest rate fluctuations and credit risk.
Outlook
Fidelity Bank is well-positioned for sustainable growth in H2 2025:
• Continued expansion of loan portfolio and transactional banking services.
• Strategic deployment of capital into digital banking and branch modernization.
• Strong equity base supports dividend distribution and future lending capacity.
• Operational efficiency measures will help manage costs and preserve margins amid a dynamic economic environment.
Analyst View
“Fidelity Bank Plc’s Q2 2025 results demonstrate resilient profitability underpinned by strong net interest income and balance sheet expansion. The Bank’s strategic investments, disciplined cost management, and robust capital position provide a solid foundation for sustainable growth and shareholder value creation in the second half of the year.”
Conclusion
Fidelity Bank Plc has maintained profitability and strengthened its balance sheet in Q2 2025, reflecting effective operational execution, strong deposit growth, and disciplined expense management. With robust capital and liquidity positions, the Bank is well-positioned to support lending growth, enhance shareholder returns, and sustain long-term operational expansion.
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Disclaimer
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