Fidelity Bank Reports N385bn Pre-Tax Profit In 2024

Fidelity Bank Plc has reported a record-breaking pre-tax profit of N385.215 billion for the 2024 financial year, marking an extraordinary 210.01 percent year-on-year (YoY) growth.

The latest audited financial statement, released on March 31, 2025, highlights the bank’s ability to sustain impressive earnings momentum, strengthen its asset base, and reward shareholders despite macroeconomic headwinds.

The bank’s gross earnings surged 87.72 percent YoY to N1.043 trillion, with interest income remaining the dominant revenue driver. Interest income alone accounted for 91 percent of total revenue, rising 106.85 percent YoY to N950.588 billion, fueled by increased lending activity and higher returns from investments in securities. Despite a windfall tax of N13.333 billion, Fidelity Bank’s post-tax profit soared 179.63 percent YoY to N278.106 billion, while earnings per share (EPS) more than doubled to N6.65, reflecting a 113.83 percent YoY growth.

Fidelity Bank also reported a significant expansion in its net interest income, which climbed 127.05 percent YoY to N629.770 billion. The bank’s strong deposit mobilisation strategy played a crucial role in this growth, attracting N1.922 trillion in new customer deposits and driving total deposits up 47.88 percent YoY to N5.937 trillion. While interest expenses increased 76.11 percent YoY to N320.818 billion, the bank effectively managed its cost structure, reducing the interest expense-to-income ratio to 33.8 percent from 39.6 percent in the previous year.

However, the bank’s strong earnings were accompanied by higher credit losses, reflecting a more challenging lending environment. Total credit loss expenses declined 16.30 percent YoY to N56.441 billion, with 91.47 percent of these losses tied to loans and advances. Notably, 73.46 percent of the bank’s credit losses were classified under Stage 3 Expected Credit Loss (ECL), indicating a significant proportion of non-performing loans. Despite this, Fidelity Bank’s net interest income after credit provisions remained robust, growing 173.11 percent YoY to N573.329 billion, reinforcing its earnings resilience.

Beyond interest income, the bank continued to strengthen its non-interest revenue streams. Fees and commission income rose 57.97 percent YoY to N78.355 billion, largely driven by revenue from letters of credit commissions, ATM charges, and foreign transactions. The bank also expanded its digital banking operations with the launch of ‘Fidelity Send’, a real-time payment platform powered by MasterCard, which is expected to drive further transactional revenue.

Fidelity Bank’s balance sheet showed remarkable strength, with total assets increasing 41.49 percent YoY to N8.822 trillion, while shareholders’ funds surged 105.32 percent YoY to N897.874 billion. The bank’s ability to expand its capital base was evident in the sharp 133.58 percent rise in share capital and premium accounts to N305.555 billion, positioning it well to meet the CBN’s N500 billion capital requirement. Shareholders were rewarded with a total dividend of N2.10 per share, including an interim dividend of N0.85 per share, underscoring the bank’s commitment to delivering strong returns.

As Fidelity Bank continues to solidify its market position, its successful public offer and rights issue in early 2025 indicate a clear strategy to strengthen capital and fund future growth. With a well-diversified income base, an expanding digital banking presence, and a robust liquidity position, the bank appears well-positioned to navigate economic uncertainties and sustain its impressive growth trajectory. Investors will be closely watching how Fidelity Bank manages credit risks and capital deployment as it moves into the next financial year.