Fidelity Bank Changes Narratives with Fitch Rating

For a bank that has been in the news lately, the Fitch Ratings, which upgraded Fidelity Bank’s National Long-Term Rating to ‘A+(nga)’ from ‘A(nga) is seen as a  breath of fresh air and a morale booster, writes Festus Akanbi

For many reasons, Fidelity Bank has been in the news in recent times. Some of the issues included the controversial N225 billion judgment debt and allegations of insider trading.

However, the recent Fitch rating, which is described as the endorsement of the bank’s capital buffers and improved profitability, has been described as a game changer for the financial institution.

Two weeks ago, the Global credit rating agency, Fitch Ratings, affirmed Fidelity Bank Plc’s Long-Term Issuer Default Rating (IDR) at ‘B’ and upgraded its National Long-Term Rating to ‘A+(nga)’ from ‘A(nga)’. The upgrade, announced on May 29, 2025, reflects the bank’s strengthened capital buffers and improved profitability, signalling continued positive momentum in its performance.

The Fitch rating came as a succour for the bank, which recently dismissed speculations about its financial strength following a Supreme Court judgment over a legacy debt put at N225 billion.

In a recent statement signed by its Divisional Head, Brand & Communications, Dr. Meksley Nwagboh, the bank refuted allegations that it was heading towards bankruptcy from a judgment over the legacy debt awarded to a company, Messrs SAGECOM Concepts Limited.

The bank assured its customers and the public that regardless of the judgment debt, it was not under any threat of bankruptcy or liquidation.

Unlocking Gains of Capital Raise

Interestingly, while some of its peers are still yet to put their houses in order, as the 2026 deadline for bank capitalisation draws nearer, Fidelity Bank is getting recognised for its efforts to stabilise the bank, meet the new capital threshold and solidify its hold on the nation’s banking landscape.

Fitch explained that the rating upgrade is underpinned by Fidelity Bank’s successful capital raise through a rights issue and public offer and a notable improvement in profitability, driven by higher interest income and a stable base of low-cost current and savings deposits.

According to Fitch, Fidelity Bank’s market positioning remains strong. As Nigeria’s sixth-largest bank, it commands approximately 5% of total banking sector assets. The bank’s balance sheet is reinforced by a high proportion of low-cost deposits, which accounted for 93% of total deposits as of year-end 2024, among the highest in the Nigerian banking industry.

The affirmation and upgrade by Fitch is expected to enhance investor confidence and support Fidelity’s continued efforts to scale its operations both locally and internationally.

One of the key drivers of the improved rating is the bank’s robust capitalisation. Fitch reports that Fidelity’s Fitch Core Capital (FCC) ratio rose to 29.9% at the end of 2024, well above the regulatory minimum. The agency also noted that further capital-raising efforts are expected to position the bank to meet the N500 billion minimum capital requirement for internationally licensed banks before the 2025 deadline.

Promise Kept

Analysts described Fitch’s rating as a testimonial for the leadership of the bank, which has defied all the distractions by holding onto the original plan to take the Fidelity Bank to its commanding heights before the expiration of the deadline for the recapitalisation processes in the Nigerian banking system.

This position was shared by the  Managing Director/CEO of the bank, Dr. Nneka Onyeali-Ikpe, who described the rating as an affirmation of the resilience of the bank’s business model, the strength of its risk management practices, and the bank’s unwavering focus on delivering sustainable value to stakeholders.

“Despite a challenging macroeconomic environment, we have continued to maintain strong asset quality, solid profitability, and ample liquidity. This recognition reinforces our position as one of Nigeria’s most resilient and customer-focused financial institutions,” she stated.

With the recent share purchase, Dr. Onyeali-Ikpe’s total shareholding in Fidelity Bank has risen from 94,644,260 units to 112,644,260 units—an increase of 19.02%. Her stake now represents 29.03% of total director shareholding, up from 25.56% as of December 31, 2024.

Season of Recognition

Fitch’s pronouncement on Fidelity Bank came on the heels of many other awards of recognition earned by the bank.  For instance, the bank was recently honoured with the Most Improved Commercial Bank of the Year award at the inaugural Nairametrics Capital Market Choice Awards on Friday, May 23, 2025.

Organised by Nigeria’s premier financial media platform, Nairametrics, the awards were launched to recognise individuals, institutions, and policy reforms that have significantly shaped Nigeria’s capital markets. The initiative seeks to spotlight excellence in areas such as regulatory leadership, corporate governance, investment performance, and financial innovation.

Stellar Performance

To show for these harvests of recognition, Fidelity Bank declared a stellar 2024 financial year. The bank posted an exceptional 210% growth in Profit Before Tax (PBT), reaching N385.2 billion—the largest year-on-year PBT increase recorded in the Nigerian banking industry for the year.

As proof that its full-year 2024 performance was not a fluke, the bank has continued to demonstrate remarkable financial resilience, solidifying its position as one of Nigeria’s leading financial institutions. Recent reports highlight the bank’s impressive growth trajectory, including its re-entry into the N1 trillion market capitalisation club and a 167.8% increase in profit before tax (PBT) to N105.8 billion in Q1 2025.

Fidelity Bank’s financial performance has been exceptional, with a 64.2% year-on-year increase in gross earnings to N315.4 billion in Q1 2025. The bank’s total deposits have surged to N6.6 trillion, driven by a 21.4% increase in foreign currency deposits. Analysts said these figures highlight its ability to attract and retain capital, ensuring liquidity and operational efficiency.

In terms of stock performance, results from the Nigerian Exchange showed that Fidelity Bank’s stock performance has been impressive, with a 237% oversubscription in its capital raise venture. Analysts predict continued growth, with gross earnings expected to reach N1.5 trillion and profit before tax projected at N415.4 billion in 2025. The bank’s ability to meet the N500 billion capitalisation target set by the Central Bank of Nigeria (CBN) underscores its financial resilience and regulatory compliance.

The bank has demonstrated a strong commitment to regulatory compliance and risk management. By maintaining capital adequacy ratios above the required thresholds – liquidity ratio at 54.7% and capital adequacy ratio (CAR) at 20.3%, compared to the minimum requirement of 30.0% and 15.0%, respectively- the bank not only ensures its stability but also contributes to the overall health of the banking sector.

Lifting Small, Medium Enterprises

Fidelity Bank’s commitment to supporting Small and Medium Enterprises (SMEs) plays a crucial role in its significance to the economy. By providing tailored financial solutions and resources for SMEs, such as the recently launched SME Hub, the bank contributes to job creation and economic development, further cementing its importance in the financial ecosystem.

As its way of giving back to society, Fidelity Bank Plc and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) recently signed a strategic partnership aimed at bolstering the growth and expansion of Micro, Small, and Medium Enterprises (MSMEs) across the African continent.

The partnership, which will grant Fidelity Bank access to provide friendly interest rate loans to MSMEs referred by SMEDAN, is projected to empower Nigerian entrepreneurs, particularly in the area of finance, capacity-building, and market access.

Speaking during the signing of the Memorandum of Understanding (MoU), the bank’s Managing Director and Chief Executive Officer, Dr. Nneka Onyeali-Ikpe, represented by the Executive Director of Lagos and SouthWest Businesses, Dr. Ken Opara, highlighted its long-standing commitment to the nation’s MSME sector noting that, for over two decades, Fidelity Bank has been at the forefront of pioneering innovative solutions to support small businesses.

Onyeali-Ikpe said the partnership between Fidelity Bank and SMEDAN is not a mere signing of an agreement but a renewed commitment to empowering MSMEs, recognising their pivotal role in driving economic growth, creating employment, and fostering national development in the years to come.

Further demonstrating its leadership, Fidelity Bank spearheaded the Central Bank of Nigeria’s recapitalisation drive with a highly successful Public Offer and Rights Issue, which was oversubscribed by 237.9% and 137.7% respectively, solidifying investor confidence in the bank’s strategic direction.