Fidelity Bank recorded a decline in profit for the 2025 financial year despite strong revenue growth, as soaring operating costs and heavy derivative losses offset gains from lending activities, fees, and foreign exchange revaluation.
The lender posted gross earnings of N1.5 trillion for the year ended December 31, 2025, representing a 45.6 per cent increase from N1 trillion recorded in 2024, according to its audited financial statements.
However, net profit fell by 12.8 per cent to N242.4 billion from N278.1 billion in the previous year as mounting expenses weighed on the bank’s bottom line.
A major drag on performance came from derivative transactions, which swung to a loss of N223.8 billion in 2025, compared with gains of N57.9 billion reported a year earlier.
Operating expenses also rose sharply by 38.2 per cent to N335.3 billion, driven by increased spending on marketing, communications, entertainment, and higher banking sector resolution costs.
Profit before tax declined to N347.7 billion from N385.2 billion recorded in 2024, while the board of directors did not recommend any dividend payout for the period under review.
Despite the earnings pressure, the results showed continued growth across the bank’s core operations amid Nigeria’s high-interest-rate environment and ongoing banking sector reforms.
Net interest income climbed by nearly one-third to N831.4 billion, supported by expansion in interest-earning assets and stronger lending activity.
The bank also reduced its credit loss provisions significantly, setting aside N21.6 billion for impaired loans compared with N56.4 billion in 2024, an indication of improved asset quality and loan recovery performance.
Fee and commission income increased by 44.7 per cent to N113.4 billion, buoyed by higher transaction volumes and growth in automated teller machine charges.
Foreign currency revaluation gains surged to N99.6 billion from N11.7 billion in the previous year, benefiting from movements in the naira following Nigeria’s foreign exchange market reforms.
Last month, Fidelity Bank announced that it raised N227 billion through a private placement conducted on December 31, 2025, involving the issuance of 12.98 billion shares as part of efforts to strengthen its capital base.
The fundraising followed an earlier N175.9 billion public offer and rights issue completed in 2024, positioning the lender to comply with the new recapitalisation requirements introduced by the Central Bank of Nigeria.
Nigeria’s banking industry is currently undergoing a major recapitalisation phase after the apex bank directed lenders to raise minimum capital thresholds to support economic growth and withstand external shocks.
Fidelity Bank, which operates in Nigeria and the United Kingdom under an international banking licence, serves more than 10 million customers.
Analysts said the lender’s latest earnings underscored resilience in its core banking business despite rising cost pressures and continued volatility linked to foreign exchange and derivative exposures.