Fidelity Bank boosts liquidity buffer as cash holdings jump above N1tn

Fidelity Bank Plc significantly strengthened its liquidity position in the 2025 financial year, with cash and cash equivalents rising sharply above the N1tn mark amid stronger deposit growth and expansion in interest-earning assets.

The bank’s audited financial statement for the year ended December 31, 2025, showed that cash and cash equivalents climbed by 87 per cent to N1.32tn from N707.45bn recorded in 2024, highlighting improved liquidity buffers despite Nigeria’s challenging monetary environment.

The lender also recorded higher balances with the Central Bank of Nigeria, as restricted deposits with the apex bank increased by 4.1 per cent to N1.65tn from N1.59tn in the previous year.

The improved liquidity profile was supported by sustained growth in customer deposits, which rose by 16.1 per cent to N6.89tn from N5.94tn, reflecting stronger customer confidence and an expanded funding base.

Fidelity Bank’s total assets also grew significantly during the year, rising by 18.6 per cent to N10.46tn compared to N8.82tn in 2024. The growth was driven largely by increases in investment securities, liquid assets and other financial instruments.

The bank posted strong earnings performance for the year, with gross earnings increasing by 45.6 per cent to N1.52tn from N1.04tn in the previous year.

Interest and similar income rose by 38.7 per cent to N1.11tn, while net interest income increased by 32 per cent to N831.35bn, supported by improved yields on earning assets and growth in the loan portfolio.

Fidelity Bank also reported a notable improvement in asset quality and credit risk management as credit loss expenses declined sharply to N21.61bn from N56.44bn in 2024.

As a result, net interest income after impairment charges rose by 41.2 per cent to N809.74bn.

Non-interest revenue also recorded strong growth during the period. Fee and commission income increased by 44.7 per cent to N113.36bn, while gains from foreign currency revaluation surged to N99.58bn from N11.72bn recorded a year earlier.

The bank further expanded its investment portfolio during the financial year, with debt instruments measured at fair value through other comprehensive income increasing by 199 per cent to N557.78bn.

Similarly, debt instruments measured at amortised cost rose by 27.2 per cent to N1.97tn, reflecting a broader expansion in the bank’s fixed-income asset base.

Fidelity Bank’s capital position also strengthened during the year as shareholders’ funds crossed the N1tn threshold.

Total equity rose by 21.1 per cent to N1.09tn from N897.87bn in the previous year. Statutory reserves increased by 32.7 per cent, while non-distributable regulatory reserves jumped by 92.5 per cent.

The bank’s performance comes amid tighter monetary conditions and elevated interest rates in Nigeria, which have pushed lenders to maintain stronger liquidity positions and improve capital buffers.

On the Nigerian Exchange, Fidelity Bank shares have also posted positive performance this year. The stock opened the year at N19.00 and closed at N21.90 on Monday, representing a year-to-date gain of 15.3 per cent.

With a market capitalisation of about N1.1tn, Fidelity Bank is currently ranked as the 25th most valuable listed company on the Nigerian Exchange, accounting for approximately 0.69 per cent of the equity market.