By Bamidele Famoofo
WorldStage– Fidelity Bank Plc, one of Nigeria’s largest banks, with a strong presence across the country, delivered a mixed FY 2025 performance as strong topline growth and significant foreign exchange gains were outweighed by elevated operating costs, derivative losses, and margin pressures.
Gross earnings rose significantly by 45.65 percent to N1.52 trillion from N1.04 trillion recorded in FY 2024, driven largely by growth in interest income, which increased by 36.60 percent to N1.30 trillion.
The bank also recorded strong growth in fee and commission income, which climbed by 44.67 percent to N113.36 billion, while foreign exchange income surged sharply by 749.91 percent to N99.58 billion from N11.72 billion in the previous year.
Despite this impressive revenue performance, interest expenses also rose sharply by 45.62 percent to N467.17 billion as funding costs remained elevated in the high-interest-rate environment. In addition, the bank recorded a derivative loss of N223.79 billion compared to a gain of N57.88 billion in FY 2024, which significantly impacted earnings.
Consequently, profit before tax declined by 9.75 percent to N347.66 billion, while profit after tax fell by 12.82 percent to N242.44 billion from N278.11 billion recorded in the prior year. Earnings per share also moderated to N5.80 from N6.52.
On the balance sheet side, the bank maintained steady growth and improved capital strength. Total assets increased by 18.61 percent to N10.46 trillion from N8.82 trillion, supported by a 44.87 percent rise in investment securities to N2.63 trillion and a 29.66 percent increase in cash and cash equivalents to N2.97 trillion. Shareholders’ funds also grew by 21.13 percent to N1.09 trillion, reflecting improved capital position during the year.
However, loans and advances declined slightly by 2.40 percent to N4.28 trillion, suggesting a more cautious lending approach amid economic uncertainties.
Operating expenses rose significantly by 33.74 percent to N443.33 billion, which pushed the bank’s cost-to-income ratio higher to 54.6 percent from 42.9 percent in FY 2024.
Meanwhile, profitability indicators weakened moderately, with Return on Equity (ROE) declining to 22.29 percent from 31.0 percent, while Return on Assets (ROA) eased to 2.3 percent from 3.2 percent.
Investors’ sentiment turned negative as Fidelity Bank Plc share price declined by 0.68 percent on Tuesday, following the weak bottom-line performance and the board’s decision not to declare dividends.
