Fidelity Bank’s gross earnings soar by 64.2% to ₦315.4b

• Published On: 02 May 2025 at 12:15

Fidelity Bank Plc reported gross earnings of ₦315.4 billion for the first quarter ended March 31, 2025, up 64.2% from ₦192.1 billion in 2024.

According to its unaudited financial accounts filed with the Nigerian Exchange Limited, the good performance was driven by significant increases in interest income, foreign exchange revaluation gains, and higher fee and commission income.

In Q1 2025, interest and similar income increased by 58.1% to ₦256.1 billion using the effective interest rate approach, compared to ₦161.9 billion in Q1 2024. The bank generated ₦25.4 billion in other interest and equivalent income, up from ₦8.2 billion the previous year.

While interest expenses increased by 28.5% to ₦90.7 billion from ₦70.5 billion, net interest income increased by 91.5% to ₦190.8 billion from ₦99.6 billion in Q1 2024.

Fidelity Bank recorded a credit loss expense of ₦6.3 billion in Q1 2025, down 49.2% from ₦12.4 billion in the same period last year. Net interest income after credit loss expense increased significantly to ₦184.5 billion, up from ₦87.3 billion in Q1 2024.

The bank's non-interest revenue increased to ₦23.8 billion from ₦18.3 billion in the previous year's quarter.

Foreign currency revaluation gains added N9.8 billion to earnings, a 200.8 percent rise over N3.3 billion in the same period previous year.

The Bank's operating expenses were high in the first quarter of 2025. Personnel expenses grew to ₦19.7 billion from ₦14 billion, while depreciation, amortisation, and impairment charges surged significantly to ₦8.7 billion from ₦2.2 billion in the same period previous year. Other operational expenses increased dramatically to ₦87.5 billion from ₦52 billion.

Despite rising expenditures, the bank reported a healthy bottom line with a profit before tax of 105.8 billion, more than doubling the 39.5 billion posted in Q1 2024. Net profit increased by 190% year on year from ₦31.4 billion to ₦91.1 billion after a tax charge of ₦14.7 billion.

Earnings per share increased to 181 kobo, from 98 kobo in the same quarter of 2024.

In Q1 2025, the bank's overall comprehensive income climbed to ₦101.6 billion from ₦35.8 billion in the same period last year. This growth was driven by currency disparities on overseas operations and revaluation gains on debt instruments.