Fidelity Bank (FIDELITYBK) Q2 2025 earnings summary

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%.

• 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 margin improved to 13.0% in H1 2025, up 100bps year-over-year.

• 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%.

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

• FX gains of ₦34.5bn were recorded, driven by trading and translation gains.

Outlook and guidance

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

• Full-year dividend payment will align with the 25%-40% payout policy.

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

• Non-interest income and digital banking will be key growth drivers as the bank diversifies away from interest income.

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