Fidelity Bank (FIDELITYBK) investor relations material

Executive summary

• Gross earnings rose 46.0% year-over-year to ₦748.7bn, driven by strong growth in both interest and non-interest income, especially FX-related and digital banking revenues.

• Total assets increased 13.9% year-to-date to ₦10.1tn, with customer deposits up 21.3% to ₦7.2tn.

• Asset quality improved, with NPL ratio dropping to 1.9% from 3.1% in 2024FY and NPL coverage at 216.5%.

• Net loans and advances grew 10.7% year-to-date, reflecting increased lending activity.

• Profit before tax declined 10.1% year-over-year to ₦180.5bn, mainly due to a ₦60bn loss on derivative contracts from Naira appreciation.

Financial highlights

• Net interest income grew 28.8% year-over-year to ₦420.4bn, supported by higher yields and increased earning assets.

• Non-interest revenue surged 124.6% year-over-year, now accounting for 11.9% of total earnings.

• Operating expenses increased 56.4% to ₦250.2bn, mainly due to legal, regulatory, staff, and technology costs, with cost-to-income ratio at 56.3%.

• Net interest margin improved to 13.0% from 12.0% in 2024FY.

• Profit after tax declined 17.2% year-over-year to ₦132.3bn, impacted by higher costs.

Outlook and guidance

• On track to meet or exceed 2025 targets for loan and deposit growth, NIM, and cost-to-income ratio.

• Capital adequacy ratio expected to exceed 25% after the next capital raise and H2 profit.

• Management expects continued improvement in asset quality and earnings, with focus on capital conservation until completion of ongoing capital raise.

• Proposed dividend payout remains at 25–40% of PAT.

• Liquidity ratio at 43.2%, well above the 30% regulatory minimum.