Fitch upgrades Fidelity Bank’s national rating to ‘A+(nga)’, cites strong capital base, profitability gains

Global credit rating agency Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of Fidelity Bank Plc at ‘B’ and upgraded its National Long-Term Rating to ‘A+(nga)’ from ‘A(nga)’, highlighting the bank’s improved financial performance, stronger capital buffers, and resilient market position.

The upgrade was officially announced on May 29, 2025, and comes amid broader regulatory and market shifts in Nigeria’s banking industry.

According to Fitch, the upward revision in Fidelity Bank’s national rating reflects its enhanced ability to absorb shocks, following a successful capital raise and marked improvement in core profitability.

Fitch’s rating action is anchored on the bank’s robust capitalisation, which saw its Fitch Core Capital (FCC) ratio rise to 29.9% at the end of 2024—substantially above the regulatory threshold.

This capital strength, combined with improved earnings and a stable funding structure, positions Fidelity Bank among the most resilient financial institutions in Nigeria.

Fitch credited Fidelity Bank’s recent rights issue and public offer as pivotal in boosting its capital base. The rating agency also acknowledged the bank’s improved profitability, largely driven by higher interest income and a stable deposit base, with 93% of total deposits made up of low-cost current and savings accounts.

Reacting to the development, Dr. Nneka Onyeali-Ikpe, Managing Director and CEO of Fidelity Bank Plc, said the upgrade by Fitch validates the strength and stability of the bank’s business model.

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“This upgrade by Fitch Ratings affirms the resilience of our business model, the strength of our risk management practices, and our unwavering focus on delivering sustainable value to stakeholders,” she stated.

“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.”

The upgrade also comes as Fidelity Bank intensifies its efforts to meet the ₦500 billion minimum capital requirement for banks with international authorization by the CBN’s 2025 deadline. Fitch noted that further capital raising initiatives are in motion, reinforcing the bank’s readiness for compliance and future growth.

With over 9.1 million customers, a wide digital footprint, and 255 business offices across Nigeria, Fidelity Bank has also expanded internationally through its UK-based subsidiary, FidBank UK Limited.

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As the sixth-largest bank in Nigeria, Fidelity commands approximately 5% of the banking sector’s total assets. Its strong balance sheet, underpinned by a high proportion of low-cost deposits, places it in a competitive position amid industry consolidation and recapitalization efforts.

The Fitch upgrade is expected to enhance investor confidence, support Fidelity Bank’s ongoing domestic and cross-border expansion, and strengthen its profile among institutional stakeholders and rating-sensitive investors.

As Nigerian banks navigate tighter regulatory capital requirements and global economic headwinds, Fidelity Bank’s upgraded rating underscores its preparedness, strategic foresight, and capacity to scale sustainably.

The bank’s leadership remains committed to capitalizing on its improved credit profile to deepen market penetration, drive innovation, and deliver consistent value to shareholders and customers.