Fidelity Bank Plc has reported a stellar pre-tax profit of N385.215 billion for the 2024 financial year ended December 31, marking a remarkable 210.01% year-on-year (YoY) increase that highlights the resilience and dynamism of Nigeria’s financial sector.
Despite an N13.333 billion windfall tax levied by the government, the bank’s post-tax profit surged by 179.63% to N278.106 billion, a testament to its operational strength in the face of Nigeria’s persistent economic challenges. According to the audited financial statement, gross earnings rose by 87.72% to N1.043 trillion, with core operational income driving approximately 97% of total revenue—a performance that underscores Fidelity’s pivotal role in the country’s banking industry.
The Board of Directors has proposed a final dividend of N1.25k per share, an increase from N0.85k in 2023, payable on April 29, 2025. Combined with an interim dividend of N0.85k already disbursed, this brings the total dividend for 2024 to N2.10k per share, drawn from retained earnings.
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Fidelity’s financial performance in 2024 is a microcosm of the broader growth narrative unfolding within Nigeria’s financial industry, which has demonstrated remarkable buoyancy, defying the nation’s economic headwinds.
With inflation averaging 33.5% in 2024, a naira depreciation that eroded purchasing power, and the Central Bank of Nigeria (CBN) hiking interest rates five times to a benchmark of 27.50%, banks have navigated a difficult economic terrain. Yet, Fidelity and its peers have turned these challenges into opportunities, capitalizing on high interest rates to boost loan income, reaping foreign exchange gains from currency adjustments, and leveraging digital platforms to enhance efficiency and fee-based revenue.
The bank’s gross earnings of N1.043 trillion reflect an 87.72% YoY leap, fueled primarily by a 106.85% surge in interest income to N950.588 billion. Interest expenses climbed by 76.11% to N320.818 billion, driven by a 56% rise in costs on customer deposits (N212.7 billion), yet the bank’s interest expense-to-income ratio improved to 33.8% from 39.6% in 2023, widening its interest margin.
This resulted in a net interest income of N629.770 billion, up 127.05% YoY. Credit loss expenses, a persistent concern for Nigerian banks in a risky lending environment, declined by 16.30% to N56.441 billion, with 91.47% (N51.63 billion) linked to loans and advances—73.46% of which were classified under Stage 3 Expected Credit Loss (ECL), indicating significant impairment. Nevertheless, net interest income after credit losses soared by 173.11% to N573.329 billion, bolstered by a net fees and commission income of N70.312 billion.
Fees and commission income grew by 57.97% to N78.355 billion, propelled by letters of credit commissions and fees (N9.47 billion), ATM charges (N6.4 billion), and commissions on travelers’ cheques and foreign bills (N6.9 billion).
The bank’s recent launch of ‘Fidelity Send,’ a MasterCard-powered real-time payment platform, has further enhanced its transaction-based revenue, offering secure and swift transfers while generating a steady cut for Fidelity. Fees and commission expenses, meanwhile, dropped by 31.91% to N8.043 billion, amplifying the net contribution to profits. Foreign exchange revaluation gains, however, fell sharply by 73.43% to N11.716 billion, reflecting the volatility of Nigeria’s forex market post-devaluation.
On the balance sheet, loans and advances to customers expanded by 41.87% to N4.387 trillion, while cash and cash equivalents nearly doubled, rising 94.26% to N707.450 billion. Total assets grew by 41.49% to N8.822 trillion, and customers’ deposits swelled by 47.88% to N5.937 trillion, adding N1.922 trillion in new deposits.
The bank also raised N352.567 billion in debt, reinforcing its liquidity. Shareholders’ funds doubled, surging 105.32% to N897.874 billion, driven by a 133.58% increase in share capital and premium accounts to N305.555 billion. This capital growth positions Fidelity well toward meeting the CBN’s N500 billion minimum capital requirement for commercial banks. On February 7, 2025, the bank announced the successful completion of its public offer and rights issue, with plans to return to the market signaling further ambition.
Fidelity’s earnings structure remained heavily reliant on interest income, which accounted for 91% of total revenue. Loans and advances to customers contributed 66%, though their share declined slightly, while investments in securities rose to 17.19%, with the portfolio expanding to N1.55 trillion—a N733.544 billion increase. This shift highlights Fidelity’s strategic move toward securities as a buffer against lending risks. Earnings per share rose 113.83% to N6.65, reinforcing the bank’s capacity to reward investors.
This performance is not an outlier but part of a broader trend of profitability across Nigeria’s banking sector in 2024, defying economic adversity.
Zenith Bank Plc reported a profit before tax of N1.33 trillion, a 67% YoY increase, with gross earnings up 86% to N3.97 trillion and a total dividend of N4.00 per share (excluding interim payouts). Guaranty Trust Holding Company Plc (GTCO) posted a record N1 trillion profit after tax, joining Zenith as the only bank to cross the trillion-naira threshold, driven by a 207% YoY surge in pre-tax profit to N1.003 trillion in the first half alone.
United Bank for Africa (UBA) Plc recorded a pre-tax profit of N803.7 billion, up 6% YoY, with a post-tax profit of N766.5 billion—an all-time high—on gross earnings of N3.19 trillion, a 54% YoY rise. Ecobank Transnational Incorporated (ETI) announced $2 billion in revenue and $333 million in profit after tax, equivalent to roughly N708.54 billion pre-tax profit at prevailing rates, up 170% YoY. FBN Holdings Plc declared N610.86 billion in pre-tax profit, a 128% YoY gain, while Access Holdings Plc reported N348.9 billion in the first half, a 108.2% increase.
Collectively, these results spotlight the Nigerian financial industry’s ability to thrive amid macroeconomic turbulence. The sector’s total assets crossed N100 trillion in 2023, and 2024’s growth suggests this upward trajectory persists, driven by deposit mobilization and strategic capital raises.
However, stage 3 loan impairments signal asset quality concerns and inflationary pressures could erode consumer purchasing power, dampening loan demand. The CBN’s stringent monetary stance, aimed at taming 33.5% inflation, has raised borrowing costs, potentially squeezing margins if deposit costs climb further.