Fidelity Bank (FIDELITYBK) Q2 2025 earnings summary

Executive summary

• Gross earnings rose 46.0% year-over-year to ₦748.7bn for H1 2025, 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%.

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

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

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 134% year-over-year to ₦83.4bn, led by digital, trade, and fee income.

• Operating expenses rose 56.4% year-over-year 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% (up 100bps year-over-year).

• Return on average equity (ROAE) stood at 28.5%.

Outlook and guidance

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

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

• Cost-to-income ratio at 56.3% aligns with 2025 guidance.

• Full-year dividend payout will align with the 25%-40% policy, with no interim dividend for H1 2025.

• Retained earnings turned positive in Q3 2025, supporting future dividend payments.