Fidelity Bank Plc Posts N74.47 Billion Q1 Profit Despite Rising Credit Losses

According to the bank’s condensed unaudited financial statements for the period ended March 31, 2026, interest income calculated using the effective interest rate method rose to N314.48 billion from N256.10 billion recorded in the corresponding period of last year.

Other interest and similar income also increased to N38.82 billion from N25.37 billion during the same period.

However, the bank’s funding costs rose sharply as interest expenses climbed to N172.53 billion compared to N90.65 billion in Q1 2025, indicating the high interest rate environment and intensified competition for deposits across the banking sector.

As a result, net interest income declined to N180.77 billion from N190.82 billion recorded a year earlier.

The lender also reported a significant increase in credit loss expenses, which rose to N29.21 billion from N6.29 billion in the corresponding quarter of 2025 amid heightened provisioning linked to macroeconomic pressures and credit risk exposure.

Profit before income and windfall taxes stood at N92.48 billion compared to N105.77 billion recorded in the first quarter of 2025.

After accounting for tax expenses of N18.01 billion, Fidelity Bank posted a profit after tax of N74.47 billion, lower than the N91.10 billion reported in the same period of last year.

Foreign currency revaluation gains emerged as a major contributor to earnings growth during the quarter as the bank recorded N47.99 billion in FX-related gains compared to N9.84 billion in Q1 2025.

On the balance sheet side, total assets expanded to N11.35 trillion from N10.46 trillion while customer deposits increased to N7.38 trillion from N6.89 trillion.

Loans and advances to customers rose to N4.66 trillion from N4.28 trillion, indicating continued growth in the bank’s lending activities despite a cautious risk environment.

The bank’s shareholders’ funds also strengthened to N1.39 trillion from N1.09 trillion supported by growth in retained earnings and share premium.

Operating expenses continued to trend upward during the quarter as other operating expenses rose to N104.45 billion from N87.48 billion while depreciation, amortisation and impairment charges increased to N12.65 billion from N8.66 billion.

Analysts said the results reflect the broader operating environment facing Nigerian banks where elevated interest rates, currency volatility and inflationary pressures are driving strong revenue growth while simultaneously increasing funding costs and impairment charges.

Despite the decline in profit after tax, Fidelity Bank maintained strong balance sheet expansion and liquidity growth as banks continue to position ahead of regulatory recapitalisation requirements and broader financial sector reforms.