Fitch Ratings has upgraded Fidelity Bank Plc’s long-term issuer default rating (IDR) from ‘A-’ to ‘A’.
In a statement on Friday, Fitch linked the rating to improved capital buffers and stronger profitability.
The rating agency said Fidelity’s capital position and earnings profile have improved significantly, supported by a successful rights issue and public offer.
According to Fitch, the rating upgrade is driven by higher interest income and a stable base of low-cost current and savings deposits.
Advertisement
The rating firm said the bank’s Fitch core capital (FCC) ratio rose to 29.9 percent at the end of 2024 — “well above regulatory thresholds”.
The agency said the bank is also on track to meet the N500 billion minimum capital requirement set by the Central Bank of Nigeria (CBN) for banks with international licences.
“Fidelity Bank’s market positioning remains strong. As Nigeria’s sixth-largest bank, it commands approximately 5% of total banking sector assets,” Fitch said.
Advertisement
“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.”
Commenting on the announcement, Nneka Onyeali-Ikpe, managing director and chief executive officer (CEO) of Fidelity Bank, said the Fitch upgrade affirms the resilience of the bank’s business model.
“The strength of our risk management practices, and our unwavering focus is on delivering sustainable value to stakeholders,” Onyeali-Ikpe said.
“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.”
Advertisement
The bank said the affirmation and upgrade by Fitch is expected to enhance investor confidence and support its continued efforts to scale its operations both locally and internationally.
