Fidelity Bank's earnings rise 45% as shareholders' funds reach N1 trillion

Fidelity Bank Plc announced that gross earnings for the 2025 financial year rose by 45 percent, pushing shareholders’ funds past the N1 trillion threshold after a period of balance‑sheet growth and fresh capital inflows.

Audited results for the year ended 31 December 2025, filed with the Nigerian Stock Exchange on Tuesday, show a strong performance across major financial indicators. Gross earnings reached N1.5 trillion, up from N1.04 trillion in 2024.

Net interest income increased to N831.3 billion, compared with N629.7 billion the previous year, reflecting higher earnings capacity amid rising interest rates and growth in interest‑bearing assets.

Interest and similar income, measured on an effective‑interest basis, grew 38.7 percent to N1.11 trillion in 2025 from N803.05 billion in 2024, while other interest and similar income rose 25.1 percent to N184.51 billion.

Net interest income after credit loss climbed 41.2 percent to N809.74 billion from N573.33 billion. Credit‑loss expense fell to N21.61 billion from N56.44 billion, a 61.7 percent improvement year‑on‑year.

The bank continued to broaden its digital banking reach, improve customer experience, and support key sectors of the economy. Non‑interest revenue remained robust, with fee and commission income up 44.7 percent to N113.36 billion from N78.36 billion, driven by letters of credit commissions (N12.5 billion), ATM charges (N11.6 billion), commissions on travellers’ cheques and foreign bills (N8.9 billion), account maintenance fees (N7.13 billion) and e‑banking commissions (N2.2 billion).

Other operating income surged 200.5 percent to N8.24 billion, and foreign‑currency revaluation gains jumped 749.9 percent to N99.58 billion from N11.72 billion in 2024.

Investment assets grew markedly, reflecting a stronger position in fixed‑income and other securities markets. Debt instruments at fair value through other comprehensive income rose 199 percent to N557.78 billion from N186.57 billion, while debt instruments at amortised cost increased 27.2 percent to N1.97 trillion from N1.55 trillion. Equity instruments at FVOCI grew 26.2 percent to N87.85 billion.

The bank also recorded gains from financial assets measured at fair value through profit or loss, which rose 280.7 percent to N2.75 billion, and recognised a new gain of N988 billion from derecognition activities.

On the balance‑sheet side, cash and cash equivalents expanded sharply by 87 percent to N1.32 trillion from N707.45 billion, bolstering liquidity buffers. Restricted balances with the Central Bank of Nigeria increased to N1.65 trillion from N1.59 trillion.

Other assets climbed 76.4 percent to N278.89 billion, while investments in property, plant and equipment rose 161.6 percent to N203.72 billion. Intangible assets grew 147.5 percent to N50.44 billion, reflecting continued investment in technology and operational infrastructure. Deferred tax assets also rose sharply to N33.10 billion from N5.31 billion.

Borrowings fell, with debts issued and other borrowed funds decreasing to N888.95 billion from N929.60 billion, indicating reduced reliance on external funding. Deferred tax liabilities were eliminated, dropping from N727 million in 2024 to zero in 2025.

Total assets expanded 18.6 percent to N10.46 trillion from N8.82 trillion, driven by growth in liquid assets and investment securities. Customer deposits increased 16.1 percent to N6.89 trillion from N5.94 trillion, showing sustained confidence and a broader funding base.

Equity also strengthened, with total equity rising 21.1 percent to N1.09 trillion from N897.87 billion, moving shareholders’ funds above the N1 trillion mark and enhancing the bank’s ability to support larger transactions, absorb shocks, and pursue regional and international expansion.

The bank disclosed that a private placement of 12.9 billion ordinary shares was completed in December 2025, raising fresh capital that lifted eligible capital to N532.6 billion—above the Central Bank of Nigeria’s N500 billion minimum for banks with international authorisation.

The PUNCH reported that the bank raised N259 billion through the private placement, substantially augmenting its capital base as it works to meet new regulatory capital requirements for commercial banks with international authorisation.

In a statement to the Nigerian Exchange Limited, the bank said the private placement was carried out after approvals from the CBN and the Securities and Exchange Commission and was opened and closed on 31 December 2025.

“Fidelity Bank Plc is pleased to inform the general public that, following approvals granted by the CBN and the SEC, it successfully opened and closed a Private Placement of ordinary shares on 31 December 2025,” the bank said.

The transaction increased total issued shares from 50.2 billion to 63.17 billion, pushing shareholders