Fidelity Bank Plc (NGX: FIDELITYBNK) has reported a decline in profit despite 44% increase in gross earnings for the nine months ended 30 September 2025.
The decrease in profit before tax despite significant expansion in gross earnings, interest income was due to a surge in its operating expenses.
Income Statement
The bank’s gross earnings rose sharply to ₦1.114 trillion in 9M 2025, up from ₦772.47 billion in the same period of 2024 — a 44.3% growth. The strong increase was driven by higher interest income, increased customer activity, and improved yields on earning assets.
Net interest income closed at ₦565.25 billion, compared to ₦470.49 billion in 2024, representing a 20.1% increase. The rise was supported by growth in the loan book, enhanced asset pricing, and a favourable interest-rate environment.
Fee and commission income surged to ₦84.48 billion, from ₦56.28 billion recorded a year earlier — a notable 50.1% year-on-year jump. The growth was fuelled by stronger e-banking transactions, account maintenance fees, credit-related fees, and trade-related income.
Personnel expenses rose to ₦59.01 billion, from ₦43.60 billion in 2024 — a 35.3% increase.
Fidelity Bank’s operating expenses rose sharply to ₦267.23bn in 9M 2025, up from ₦186.45bn in 2024. The increase was driven mainly by higher regulatory charges — including the AMCON levy of ₦50.99bn and NDIC premium of ₦19.48bn — as well as a surge in marketing spending to ₦44.58bn. Technology costs also remained high, with computer expenses rising to ₦40.40bn, while consultancy fees increased to ₦16.26bn. These elevated costs contributed to the slight decline in overall profitability despite strong revenue growth.
Profit before tax stood at ₦268.20 billion, slightly lower than the ₦281.41 billion recorded in 2024 — a 4.7% decline. The moderation in PBT was driven by higher operating expenses and the impact of derivative-related and FX valuation losses during the period.
Profit after tax closed at ₦211.73 billion, compared to ₦224.60 billion in the corresponding period of 2024 — a 5.7% decrease. Despite strong revenue performance, elevated costs and tax expenses softened overall profitability.
Basic earnings per share settled at 412 kobo, lower than 702 kobo in 2024. The reduction reflects both the decline in profit and the expanded share capital following the bank’s 2024 rights issue and public offer.
Balance Sheet
Fidelity Bank’s total assets expanded to ₦10.55 trillion, up from ₦8.82 trillion at the end of 2024 — a 19.6% increase. The growth highlights strong expansion in loans, investment securities, and cash balances.
Major Components of Assets
- Loans and advances to customers: ₦8.25 trillion
- Cash and cash equivalents: ₦1.30 trillion
- Debt instruments at amortised cost: ₦2.68 trillion
- Debt instruments at FVOCI: ₦300.37 billion
The asset mix reflects the bank’s strategy of growing risk-asset creation while maintaining high liquidity buffers.
Total liabilities rose to ₦9.50 trillion, higher than ₦7.92 trillion reported at the end of 2024 — a 20% increase. Growth in customer deposits, borrowings, and other obligations contributed to the rise.
Major Components of Liabilities
- Customer deposits: ₦7.34 trillion
- Other liabilities: ₦1.28 trillion
- Borrowings and debt securities: approximately ₦1.29 trillion
Shareholders’ equity grew to ₦1.053 trillion, from ₦897.87 billion in December 2024 — a 17.3% increase. This was supported by retained earnings and improvements in fair-value reserves.
The bank’s cash and cash equivalents nearly doubled to ₦1.303 trillion, from ₦707.45 billion at the end of 2024 — an 84.2% increase — indicating a stronger liquidity position and improved operating inflows.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
