Full Year 2025 Fidelity Bank PLC Earnings Call Transcript
Key Points
- Fidelity Bank PLC (NSA:FBP) reported a significant 45.6% increase in gross earnings, reaching NGN 1.52 trillion, driven by a 36.6% growth in interest income and a 138.3% surge in noninterest revenue.
- The bank's net interest margin improved to 12.3% from 12% in 2024, reflecting effective asset liability management and a 32% year-on-year rise in net interest income.
- Fidelity Bank PLC successfully raised NGN 227 billion through a private placement, elevating its regulatory capital above the NGN 500 billion threshold, solidifying its status as a Tier 1 bank.
- The bank's UK subsidiary recorded an operating profit for the first time since acquisition, contributing positively to the group's financial performance.
- Fidelity Bank PLC plans to expand its presence in Africa with two to five new subsidiaries over the next two years, indicating a strategic focus on growth and diversification.
- The bank faced a NGN 194 billion unrealized loss on a total return swap with the Central Bank of Nigeria, attributed to the depreciation of the Naira.
- Operating expenses increased by 33.7% to NGN 443.3 billion, driven by AMCON charges, deposit insurance charges, and other operational costs.
- Despite the increase in stage two loans, particularly in the oil and gas sector, the bank's cost of risk guidance remains at a maximum of 2%, raising concerns about potential future impairments.
- No dividend was declared for 2025 due to regulatory requirements for capital conservation, impacting shareholder returns.
- The bank's loan growth was limited to 2% in 2025, despite a target of 10%, due to a conservative approach to capital preservation and the strengthening of the Naira.
Good day, ladies and gentlemen, and welcome to the Fidelity Bank 2025 Full Year Earnings Call. (Operator Instructions) Please note that this event is being recorded. I'll now hand you over to Nneka Onyeali-Ikpe. Please go ahead.
Good day. My name is Nneka Onyeali-Ikpe. I'm the CEO of Fidelity Bank Plc. I am pleased to welcome you to our full year 2025 earnings call. On this call today with me are the following executives and principal officers of our bank: Kevin Ugwuoke, Executive Director, Risk; Ken Opara, Executive Director, Lagos & South-West; Stanley Amuchie, Executive Director, Chief Operations Officer; Pamela Shodipo, Executive Director, South; Abolore Solebo, Executive Director, Corporate Banking, Sufiyanu Garba, Executive Director North; Victor Abejegah, Chief Financial Officer; Akintoye Babalola, Treasurer; Adetunji Mustafa, Divisional Head, Strategy, Innovation and Business Transformation; Samuel Obioha, Head of Investor
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