International credit rating agency Fitch Ratings has upgraded Fidelity Bank’s National Long-Term Rating to ‘A+(nga)’ from ‘A(nga) and affirmed its Long-Term Issuer Default Rating (IDR) at ‘B’.
The rating announced on Thursday was underpinned by Fidelity Bank’s successful capital raise through a rights issue and public offer and an improvement in profitability, on the back of higher interest income and a stable base of low-cost current and savings deposits.
Fidelity Bank had a combined offer for intending investors to purchase 10 billion ordinary shares of 50 kobo each via public offer and 3.2 billion ordinary shares of 50 kobo each via rights issue in 2024. The combined offer was oversubscribed.
Commenting on the rating upgrade, the Managing Director/Chief Executive Officer of Fidelity Bank, Dr Nneka Onyeali-Ikpe, said, “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.
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.”
One of the key drivers of the improved rating is the bank’s robust capitalisation. Fitch reports that Fidelity’s Fitch Core Capital ratio rose to 29.9 per cent 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 ₦500bn minimum capital requirement for internationally licensed banks before the 2025 deadline.
Fidelity Bank’s market positioning remains strong. As Nigeria’s sixth-largest bank, it commands approximately five per cent of total banking sector assets. The bank’s balance sheet is reinforced by a high proportion of low-cost deposits, which accounted for 93 per cent of total deposits as of year-end 2024.
The affirmation and upgrade by Fitch are expected to enhance investor confidence and support Fidelity’s continued efforts to scale its operations both locally and internationally.