Fidelity Bank Plc has released its first-quarter 2026 financial results, reporting a pretax profit of N92.4 billion, representing a 12.57 per cent decline compared to the N105.7 billion recorded in the same period of 2025.
Although the bank posted strong growth in gross earnings and interest income during the quarter, rising funding costs and higher interest expenses significantly pressured overall profitability.
The lender’s performance was largely driven by robust earnings from loans and advances to customers, which continued to serve as the bank’s primary revenue engine.
Strong Revenue Growth Offsets Pressure on Earnings
Fidelity Bank’s gross earnings rose sharply to N434.9 billion in Q1 2026, reflecting a 37.89 per cent increase year-on-year from N315.4 billion recorded in the corresponding period of 2025.
Interest income climbed to N314.4 billion from N256.1 billion, supported mainly by income generated from customer loans and advances, which contributed N198.6 billion during the quarter.
Additional support came from treasury bills and investment securities, which generated N96.3 billion, while placements and short-term funds added N19.1 billion. Finance lease advances contributed another N438 million.
However, despite the strong top-line performance, the bank faced a steep rise in interest expenses, which surged to N172.5 billion from N90.6 billion recorded a year earlier.
The sharp increase in funding costs reduced net interest income to N180.7 billion, compared to N190.8 billion in Q1 2025.
After accounting for credit loss expenses of N29.2 billion, net interest income settled at N151.5 billion for the period.
FX Revaluation Gains Boost Non-Interest Income
On the non-interest income side, Fidelity Bank recorded impressive growth in fees and commission earnings, which rose by 39.69 per cent to N33.2 billion from N23.8 billion.
One of the biggest highlights of the quarter was the sharp increase in foreign exchange revaluation gains, which surged by 388 per cent year-on-year to N47.9 billion, compared to N9.8 billion recorded in Q1 2025.
Despite these gains, overall profitability weakened after operating expenses and tax charges were deducted, resulting in a post-tax profit of N74.4 billion, lower than the N91.1 billion reported in the previous year.
Balance Sheet Shows Stronger Financial Position
The bank’s balance sheet, however, reflected continued growth and financial resilience.
Total assets expanded to N11.3 trillion from N10.4 trillion, with loans and advances to customers standing at N4.6 trillion as the bank’s largest asset class.
Customer deposits remained the bank’s biggest liability, increasing to N7.3 trillion from N6.8 trillion, representing a 7.11 per cent year-on-year growth.
Total liabilities rose to N9.9 trillion from N9.3 trillion, while shareholders’ equity strengthened to N1.3 trillion.
Retained earnings also recorded significant improvement, climbing 42.93 per cent year-on-year to N247.9 billion — a development analysts say could support stronger shareholder returns and future capital stability.
Investors React as Shares Dip
Following the release of the results, Fidelity Bank shares declined by 9.05 per cent during trading on May 26, 2026.
Despite the selloff, the stock has still gained more than 13 per cent year-to-date on the Nigerian Exchange, where it currently trades at N21.60.
Market analysts believe investors are closely watching the bank’s ability to manage rising funding costs and maintain profitability amid Nigeria’s high-interest-rate environment and ongoing macroeconomic pressures.