Several media platforms have widely reported the Supreme Court ruling on a dispute between the defunct FSB International Bank and Sagecom Concepts Limited, with some questioning the ability of Fidelity Bank (the judgment debtor) to make the payment.
As the matter is still before the court and in light of a court order prohibiting media publications on the case, warning that violations would constitute contempt of court, a punishable offence, we will instead highlight in this article why Fidelity Bank is regarded by many as too big to fail.
Fidelity Bank Plc has demonstrated remarkable financial resilience, solidifying its position as one of Nigeria’s leading financial institutions. Recent reports underscore the bank’s impressive growth trajectory, including its re-entry into the N1 trillion market capitalisation club and a 167.8% increase in profit before tax (PBT) to N105.8 billion in Q1 2025.
The bank recorded a 64.2% year-on-year increase in gross earnings to N315.4 billion during the same period. Total deposits surged to N6.6 trillion, driven by a 21.4% growth in foreign currency deposits. These numbers reflect the bank’s robust ability to attract and retain capital, ensuring liquidity and operational efficiency.
Fidelity Bank’s stock performance has been particularly strong, with a 237% oversubscription in its recent capital raise. Analysts anticipate continued growth, projecting gross earnings to reach N1.5 trillion and PBT to hit N415.4 billion in 2025.
Importantly, the bank is on track to meet the N500 billion minimum capital requirement set by the Central Bank of Nigeria (CBN), reflecting its financial resilience and commitment to regulatory compliance.
Fidelity Bank plays a vital role in Nigeria’s economy by actively supporting Small and Medium Enterprises (SMEs). Through tailored financial solutions and initiatives such as the recently launched SME Hub, the bank fosters entrepreneurship, job creation, and inclusive economic development, further cementing its relevance within the financial ecosystem.
The bank’s commitment to regulatory compliance and sound risk management practices is evident in its capital metrics. It maintains a liquidity ratio of 54.7% and a capital adequacy ratio (CAR) of 20.3%, well above the regulatory minimums of 30.0% and 15.0%, respectively. These figures highlight the bank’s financial soundness and its contribution to the overall stability of the banking sector.
The 2023 acquisition of Union Bank UK marked a major milestone in Fidelity Bank’s strategic expansion, extending its global footprint and enhancing its capacity to serve a diverse international clientele. The bank’s leadership has set an ambitious course to attain tier-1 bank status, reinforcing its long-term stability and growth prospects.
It is also worth noting that, in line with global best practices, judgment payments of this nature can be made in instalments, as agreed by the involved parties. This approach ensures compliance with court directives sustainably and responsibly.