Fidelity Bank (FIDELITYBK) Q4 2025 earnings summary

Executive summary

• Gross earnings rose 45.6% to NGN 1.52 trillion, driven by strong interest and non-interest income growth.

• Net interest margin improved to 12.3% from 12% year-over-year, reflecting disciplined asset-liability management.

• Operating expenses increased 33.7% to NGN 443.3 billion, mainly due to regulatory, legal, and staff costs, with cost-to-income ratio at 54.6%.

• Regulatory capital was boosted by a NGN 227 billion private placement, exceeding the NGN 500 billion minimum for international banking.

• Profit before tax declined 9.7% to NGN 347.7 billion due to a NGN 223.8 billion loss in derivative contracts from naira appreciation.

Financial highlights

• Net interest income grew 32% year-over-year to NGN 831.4 billion, supported by higher yields on earning assets.

• Non-interest revenue surged 138.3%, now 14.6% of total earnings, led by FX, trade, digital, and credit-related fees.

• Cost-to-income ratio remained at 54.6%, in line with guidance.

• Net loans and advances fell 2.4% to NGN 4,281.7 billion, with declines in oil & gas, communication, and commerce sectors.

• Customer deposits grew 16.1% to NGN 6,890.9 billion, marking the 12th consecutive year of double-digit savings deposit growth.

Outlook and guidance

• Projected 44% increase in PBT to NGN 500 billion for 2026, with focus on non-interest income, e-banking, and sustainable returns.

• Loan growth to remain moderate, with 2026 target of 5–10% and emphasis on retail, payday, and trade-related income.

• Dividend payout guidance for 2026 set at 25%-40% of PAT, subject to regulatory and business conditions.

• Cost of risk guidance maintained at a maximum of 2% for 2026.

• Naira expected to remain stable in 2026, with exchange rate projected between NGN 1,300-1,450/USD.