Cost Of Funds, Credit Loss… Why Fidelity Bank’s Profit Crashed By 12%

July 1, 2026
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Fidelity Bank saw a 37.89 percent growth in its topline in the first quarter (Q1) of 2026, after securing N434.94 billion in revenue, compared to the N315.42 billion generated between January and March 2025.

According to analysis of the lender’s consolidated and separate statement of profit or loss and other comprehensive income for the period ended March 31, 2026, interest income increased by 25.52 percent year-on-year.

Interest income contributed N353.30 billion to Fidelity Bank’s earnings in the first quarter of this year, surpassing the N281.46 billion it accounted for during the corresponding period in 2025.

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Also, interest expense, which is the cost of deposits/funds or interest banks pay on using depositors funds, gulped N172.53 billion in the first three months of 2026, rising from N90.65 billion in Q1 2025, representing a 90.32 percent increase, according to Prime Business Africa’s (PBA) analysis.

This resulted in net interest income declining by 5.26 percent to N180.77 billion between January and March of this year, down from the N190.81 billion reported in the same period in Q1 2025.

Credit loss expense also impacted Fidelity Bank’s financials, as it increased to N29.20 billion in Q1 2026, up from N6.28 billion recorded in Q1 2025, reflecting a 364.69 percent growth.

Also, net interest income after credit loss expense declined by 17.86 percent to N151.56 billion in the first quarter of 2026, compared to the N184.53 billion reported in the first three months of last year.

However, a 39.69 percent growth in fee and commission income offset the aforementioned loss, after the former surged to N33.27 billion in the first quarter of 2026, rising from N23.82 billion in Q1 2025.

The impact was lessened by a 45.83 percent increase in fee and commission expense, which skyrocketed to N3.88 billion in Q1 2026, compared to the N2.66 billion expenses incurred in the previous year’s Q1.

Fidelity Bank further supported its bottom line with other operating income of N373 million in the first quarter of 2026, up by 26.01 percent from the N296 million reported in the same period in 2025.

The company also recorded a growth in foreign currency revaluation gains, which rose from N9.83 billion in the first three months of last year to N47.99 billion in Q1 2026.

However, the 388 percent increase in FX revaluation gains failed to prevent a 12.56 percent decrease in profit before tax (PBT), after the latter dropped to N92.47 billion in Q1 this year, below the N105.77 billion reported in Q1 2025.

Out of the pretax profit, Fidelity Bank paid N18 billion as income tax during the period under review, up from N14.66 billion in the first quarter of 2025, indicating a 22.75 percent jump.

Also, profit after tax (PAT) declined by 18.25 percent to N74.47 billion between January and March 2026, falling short of the N91.10 billion post-tax profit reported in the corresponding period in 2025.

In 2025, Fidelity Bank suffered a decline in its bottom line despite a double-digit growth in topline after recording over N200 billion derivative loss.

For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: [email protected] and [email protected]

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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.

Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.

He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.

Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.

Prime Business Africa

Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.

Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.

He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.

Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.

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