Fidelity Bank’s Half-Year Results Profit Declines to N180.5 Billion Despite Strong Revenue Growth

Fidelity Bank’s Half-Year Results Profit Declines to N180.5 Billion Despite Strong Revenue Growth

Fidelity Bank half-year financial performance for 2025 reveals a pretax profit of N180.5 billion, according to the bank’s unaudited report filed with the Nigerian Exchange (NGX). The result reflects a decline from the N200.8 billion posted in the first half of 2024, even though the bank recorded stronger revenue growth across major income lines

A closer look at the figures shows that the drop in profitability was largely due to rising operating expenses, which significantly eroded gains from both interest and non-interest income streams.

Key Performance Highlights

• Interest income: N557.9 billion (+53.29% YoY)
• Net interest income: N420.4 billion (+28.80% YoY)
• Net interest income after impairment: N406.7 billion (+40.03% YoY)
• Fee & commission income: N53.3 billion (+52.20% YoY)
• FX revaluation gains: N33.6 billion (+882.42% YoY)
• Other operating expenses: N200 billion (+55.60% YoY)
• Pretax profit: N180.5 billion (-10.13% YoY)
• Post-tax profit: N132.3 billion (-17.22% YoY)
• Total assets: N10 trillion (+13.94% YoY)

What Drove the Numbers

Fidelity Bank recorded exceptional top-line improvement, with interest income rising to N557.9 billion, up from N363.9 billion in H1 2024.

• Loans and advances to customers were the major contributor, bringing in N403.4 billion.
• Treasury bills and investment securities added N147.9 billion combined.
• Other interest-related sources made up the balance.

Meanwhile, other interest and similar income came in at N101.7 billion, slightly below the N109.2 billion posted in H1 2024.

After accounting for interest expenses of N239.2 billion, the bank closed the period with net interest income of N420.4 billion.
Once credit impairment charges of N13.6 billion were deducted, net interest income rose to N406.7 billion, a significant 40% YoY jump.

Cost Pressures Drag Earnings Down

While non-interest income also grew strongly — including a 52.2% rise in fees and commissions and a massive 882% jump in FX revaluation gains — the gains were overshadowed by surging expenses.

Major cost items included:

• A shift from N34.2 billion derivative gain (H1 2024) to a loss of N59.7 billion in H1 2025
• Personnel expenses rising sharply from N26.7 billion to N40.9 billion
• Other operating expenses hitting N200 billion, up 55.60% YoY

Key contributors to operating expenses:

• Banking sector resolution cost: N50.9 billion
• Legal expenses: N30 billion
• Marketing expenses: N28.9 billion
• Computer expenses: N27 billion

These cost increases ultimately pushed pretax profit down 10.13% YoY to N180.5 billion, and post-tax profit down 17.22% YoY to N132.3 billion.

Despite this, the bank remains solidly profitable.

Balance Sheet Overview

Fidelity Bank’s balance sheet remained strong in the first half of 2025:

• Total assets climbed to N10 trillion, representing a 13.94% YoY growth
• Loans and advances to customers: N4.8 trillion (largest component)
• Total liabilities: N9.07 trillion (up from N7.9 trillion YoY)
• Customer deposits: N7.2 trillion, forming the bulk of liabilities

On the equity side, the bank reported:

• Total equity: N975.6 billion (+8.66% YoY)
• Regulatory reserve: N459.1 billion (largest component)
• Retained loss: N74.1 billion (a reversal from a N185.2 billion gain in 2024)

Stock Market Performance

As of 13 November 2025, Fidelity Bank’s stock price stands at N19, delivering a year-to-date return of 8.86%.

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