Fidelity Bank Profit Slumps 17.21% on Derivative Loss as Costs Spike

Fidelity Bank Plc has seen its second quarter profit drop 17.21 percent after booking a derivative loss of N59.77 billion as the lender is beset by rising operating expenses that has contributed to deteriorating margins.

The small and mid-tier lender reported after tax profit of N132.31 billion for the second quarter of 2025, down from N159.83 billion the previous year.

Pre-tax profit dipped by 10.17 percent to N180.52 billion in June 2025 from N200.87 billion the previous year.

It must be noted that Fidelity Bank incurred a derivative loss of N59.77 billion, which is significantly responsible for the dent at the bottom line (profit).

The Bank’s shares have gained 9.07 percent since the start of the year, underperforming the NGXASI index returns of 42.08 percent.

Gross earnings were up by 45.98 percent to N748.70 billion in the period under review from N512.86 billion as at June 2024.

Interest income on loans and advances increased by 39.40 percent to N659.68 billion as at June 2025 from N473.22 billion the previous year.

Despite deteriorating profitability, Fidelity Bank still trades at an attractive valuation compared to peer rivals.

It has a price to earnings ratio of 2.01 times and a dividend yield of 10.88 percent, and a price to book ratio of 1.03.

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