Fidelity Bank’s 2025 FY marred by Operating costs, Derivative losses, margin pressure

• As FX gains, Top line peaks

Fidelity Bank Plc 2025 financial year result re- leased recently showed a mixed performance.

The bank in the result delivered a strong top-line growth and significant foreign exchange gains.

However, these gains were offset by derivative losses, elevate operating costs, and margin pressures.

The result which was released by the NGX Exchange showed that gross earnings rose significantly by 45.65% to N1.52 trillion from N1.04 trillion recorded in FY 2024, driven largely by growth in interest income, which increased by 36.60% to N1.30 trillion.

The bank also recorded strong growth in fee and commission income, which climbed by 44.67% to N113.36 billion, while foreign exchange income surged by 749.91% to N99.58 billion, up from N11.72 billion in the previous year.

Meanwhile, irrespective of this impressive revenue performance, interest expenses also rose sharply by 45.62% to N467.17 billion as funding costs remained elevated in the high-interest-rate environment

In addition, the bank recorded a derivative loss of N223.79 billion compared to a gain of N57.88 billion in FY 2024, which significantly impacted earnings.

Consequently, profit before tax declined by 9.75% to N347.66 billion, while profit after tax fell by 12.82% to N242.44 billion from N278.11 billion recorded in the prior year. Earnings per share also moderated to N5.80 from N6.52.

On the balance sheet side, the bank maintained steady growth and improved capital strength.

Total assets increased by 18.61% to N10.46 trillion from N8.82 trillion, supported by a 44.87% rise in investment securities to N2.63 trillion and a 29.66% increase in cash and cash equivalents to N2.97 trillion.

Shareholders’ funds also grew by 21.13% to N1.09 trillion, reflecting improved capital position during the year.

However, loans and advances declined slightly by 2.40% to N4.28 trillion, suggesting a more cautious lending approach amid economic uncertainties.

Operating expenses rose significantly by 33.74% to N443.33 billion, which pushed the bank’s cost-to-income ratio higher to 54.6% from 42.9% in FY 2024.