Earnings Report /
Nigeria

Fidelity Bank: Q3 earnings decline on funding pressures, downgrade to Hold

  • Fidelity Bank's net profit fell 21% yoy in line with our expectations, with net interest income being the driver

  • The group recorded a surge in funding costs from term deposits, given improved market yields and lower system liquidity

  • We downgrade to Hold with an unchanged TP of NGN2.8; Fidelity's unfavourable funding mix will constrain interest margins

Busola Jeje
Busola Jeje

Research Analyst

Tellimer Research
23 November 2021
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