Fidelity Bank Plc has released its financial results for the first quarter of 2026, reporting a pretax profit of N92.4 billion. This figure represents a 12.57% decline compared to the N105.7 billion recorded in the same period of 2025. The bank’s performance was primarily underpinned by robust interest income, which rose to N314.4 billion from N256.1 billion, largely driven by loans and advances to customers that contributed N198.6 billion.
Despite solid top-line growth, rising interest expenses weighed on earnings. Interest costs climbed to N172.5 billion from N90.6 billion in the corresponding period of 2025. However, the balance sheet demonstrated increased strength, with customer deposits rising to N7.3 trillion from N6.8 trillion. Retained earnings also grew by 42.93% year-on-year to N247.9 billion, supporting expectations for stronger shareholder returns.
A closer examination of the Q1 2026 results reveals that gross earnings climbed to N434.9 billion, compared to N315.4 billion in the prior year. Despite the strong interest income growth, rising interest expenses of N172.5 billion reduced net interest income to N180.7 billion, down from N190.8 billion in Q1 2025. On the non-interest side, fees and commission income rose to N33.2 billion from N23.8 billion, while foreign exchange revaluation gains surged to N47.9 billion from N9.8 billion.
After accounting for operating expenses and tax charges, bottom-line profitability settled at a post-tax profit of N74.4 billion, lower than the N91.1 billion recorded in the prior year. On the balance sheet, total assets increased to N11.3 trillion from N10.4 trillion in 2025, with loans and advances to customers of N4.6 trillion remaining the largest contributor. On the liabilities side, customer deposits stood as the largest obligation at N7.3 trillion, up 7.11% year-on-year, while total liabilities rose to N9.9 trillion from N9.3 trillion.
Total equity also strengthened, rising to N1.3 trillion, supported by retained earnings of N247.9 billion, which grew 42.93% year-on-year. Shares of the company shed 9.05% in the 26 May 2026 trading session, coinciding with the release of its financial results. Despite the day’s selloff, the stock remains up over 13% year-to-date on the Nigerian Exchange, trading at N21.60.
In related market developments, the Naira hits four-week lows amid ongoing currency pressures, while political tensions continue as Obi accuses Ecowas of inaction. The Guinea-Bissau incident not yet resolved has drawn regional attention, and another ambush tax policy has sparked debate among stakeholders. Meanwhile, Ecowas moves cut through diplomatic channels to address these challenges, though the full impact on financial markets remains to be seen.
