Fidelity Bank Plc reported strong revenue growth in its first-quarter 2026 financial results, although a sharp rise in impairment charges significantly weighed on profitability amid continued macroeconomic pressures in Nigeria.
For the period ended March 31, 2026, the Group recorded gross earnings of ₦434.95 billion, representing a 38 per cent increase from ₦315.42 billion reported in the corresponding period of 2025. The Bank alone posted gross earnings of ₦423.69 billion, up 37.5 per cent year-on-year.
Despite the strong top-line performance, profit for the period declined significantly. The Group posted a profit of ₦74.47 billion, representing an 18 per cent drop from ₦91.10 billion recorded in Q1 2025. Similarly, the Bank’s profit fell to ₦74.81 billion from ₦91.13 billion in the same period last year.
The decline in profitability was largely driven by a steep increase in credit impairment charges, which surged to ₦29.21 billion in Q1 2026 from ₦6.29 billion in the corresponding period of 2025, representing a 364 per cent increase. The bank also recorded impairment charges of ₦28.85 billion compared to ₦6.62 billion a year earlier.
As a result, net interest income after credit loss expenses dropped to ₦151.56 billion for the Group from ₦184.53 billion recorded in Q1 2025.
Analysts said the spike in impairment charges reflects the challenging operating environment marked by naira volatility, inflationary pressures, and elevated credit risks across key sectors of the economy.
The bank got a boost this quarter from solid foreign exchange revaluation gains, which climbed to ₦47.995 billion, up from ₦9.835 billion in Q1 2025, helping to cushion the effects of higher provisions and operating expenses.
The lender also maintained growth across key balance sheet indicators. Total assets increased to ₦11.35 trillion, representing an 8.5 per cent rise from December 2025 levels, while customer deposits grew to ₦7.38 trillion. Loans and advances to customers stood at ₦4.66 trillion.
During the period, the Bank strengthened its capital base through a share issuance that generated approximately ₦227 billion, comprising ₦6.487 billion in share capital and ₦220.56 billion in share premium. This lifted total equity to ₦1.386 trillion for the Group.
Earnings per share stood at 569 kobo for the Group and 557 kobo for the bank.
