Fidelity Bank Plc has opened 2025 with a powerful earnings statement, reporting a pre-tax profit of N107.77 billion for the first quarter, a 167.79% year-on-year leap – signaling that its recent strategic moves, including a successful capital raise, are already delivering returns to investors.
The performance, announced in the bank’s unaudited financial statement for the quarter ended March 31, 2025, confirms a continuation of the bank’s growth trajectory, with earnings underpinned by a sharp increase in interest income, disciplined cost management, and improved asset quality.
The result also bolsters investor sentiment following last year’s oversubscribed public offers and rights issue, which Fidelity Bank launched as part of its plan to meet the Central Bank of Nigeria’s (CBN) N500 billion minimum capital requirement for tier-one banks. The recapitalization directive, issued in March 2024, gave banks a 24-month window to bolster their capital base to improve financial system stability.
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Fidelity Bank’s combined capital raise via public offer and rights issue, which closed in late 2024 — drew massive interest from investors, who were betting on the bank’s profitability and management’s strategy. This Q1 result now serves as proof that those bets are beginning to pay off. Fidelity Bank raised a total of N231.97 billion through its public offer. The offer received applications for 23.79 billion shares valued at N231.97 billion. The bank initially aimed to raise N97.5 billion through the public offer, with a total capital raise of N127.1 billion including a rights issue.
Core Earnings Drive Profit Surge
Gross earnings rose to N315.42 billion in Q1 2025, a 64.21% increase from the N192.1 billion recorded in the same period last year. The bulk of this came from interest income, which surged 65.44% year-on-year to N281.47 billion. Notably, 75% of interest income came from loans and advances to customers, affirming the bank’s aggressive but disciplined lending stance. Investment in securities added another 18.31% to interest income.
At the same time, interest expenses rose to N90.65 billion, a 28.58% increase, largely due to rising deposit rates. However, this accounted for just 32% of total interest income, a marked improvement from 41.14% in Q1 2024, meaning Fidelity is now retaining a greater share of its income.
Net interest income jumped 91.52% to N190.82 billion, while net interest income after credit loss provisions grew 111.45% to N184.53 billion. The bank’s cost of risk fell significantly, with credit loss expenses dropping by nearly half to N6.28 billion, down from N12.37 billion a year earlier — indicating fewer bad loans and improved loan book quality.
Non-Interest Income and Fee Growth
Fidelity Bank also made significant headway in its non-lending business. Fees and commission income rose 30.10% year-on-year to N23.82 billion. While income from account maintenance fees slightly declined, the bank saw a 57% jump in earnings from traveler’s cheques and foreign bills and a 23.38% increase in commissions from letters of credit. Fee and commission expenses, however, rose by 37.56% to N2.67 billion.
Ultimately, net profit for the period rose to N91.10 billion, up from N31.44 billion in Q1 2024 — a growth of 189.75%. This translated to earnings per share of N1.81, representing an 84.69% improvement from N0.98 recorded a year earlier.
Balance Sheet Expansion and Liquidity Strength
Fidelity Bank’s balance sheet continues to expand at pace. Total assets climbed to N10.45 trillion, representing an 18.48% growth from the same quarter in 2024. The bank also recorded a sharp increase in cash and cash equivalents, which jumped by 128.90% to N1.62 trillion — a key indicator of the bank’s healthy liquidity position.
Loans and advances to customers rose 4.96% to N4.61 trillion, underlining controlled lending growth despite aggressive interest income expansion. Customer deposits also grew by 11.15% to N6.60 trillion, reflecting sustained depositor confidence and strong mobilization of retail and institutional funds.
Shareholders’ funds rose slightly by 3.39% to N933.14 billion, boosted by retained earnings and capital injection from the recently concluded public offers.
A Payout for Investor Faith
With its Q1 profit now standing at over N107 billion, roughly 75% of its full-year 2024 pre-tax earnings of N140 billion, Fidelity has effectively rewarded investor confidence just months after their commitment. The performance suggests the bank is on track to deliver another record-breaking year.
The Q1 earnings also improve the bank’s capacity to retain profits for future capital buffers while maintaining dividend potential — a key attraction for retail shareholders.
On the Nigerian Exchange (NGX), Fidelity Bank began the year trading at N17.50 per share. As of the close of Q1 2025, the stock had gained 14%, making it the 48th best-performing stock on the exchange in year-to-date rankings. This upward movement mirrors growing investor optimism, especially as the broader banking sector enters a period of transformation under the CBN’s capital restructuring directive.
Analysts say Fidelity Bank’s result strengthens its positioning to become one of the strongest indigenous players in the tier-one banking space. Its ability to mobilize deposits, grow interest income, maintain cost discipline, and manage risk effectively, while also attracting market capital, puts it in a favorable spot as Nigerian banks adjust to tougher regulatory and economic conditions.