Fidelity Bank's Q1 Revenue Jumps 38% on Interest Income

Fidelity Bank reported a substantial 37.9% increase in gross earnings for the first quarter, driven by interest income. The bank's revenue climbed to N434.9 billion from N315.4 billion a year earlier. This growth was fueled by higher interest earned on loans, treasury bills, and investment securities, even with a cut in the monetary policy rate.

However, the bank faced significant cost pressures. Interest expenses surged by 90.3%, leading to a drop in net interest income to N180.8 billion from N190.8 billion. Furthermore, credit quality worsened, causing a 364.7% acceleration in credit loss provisions to N29.2 billion as the lender set aside more funds for potential bad loans.

Despite these challenges, fee and other commission income saw a healthy jump of 39.7% to N33.3 billion, boosted by ATM charges and letter of credit fees. Foreign currency revaluation gains also advanced significantly to N48 billion from N9.8 billion. Other operating expenses rose by 19.4% to N104.5 billion, attributed to marketing, communication, entertainment, and banking sector resolution costs.

Ultimately, these increased costs impacted profitability. Profit before tax declined to N92.5 billion from N105.8 billion, and profit after tax eased to N74.5 billion from N91.1 billion. The bank's total assets increased to N11.4 trillion from N10.5 trillion at the end of December 2025.