June 8 (THEWILL) — Fidelity Bank, the flagship subsidiary of Fidelity Bank Group, accumulated fines amounting to N645.9 million within five years (2021-2025), arising from various regulatory violations. thereby ranking it among the foremost offenders in the financial services sector during this period.
This progression took place over a steady span of five years, during which the bank deviated from established norms, resulting in regulatory fines that affect profitability, consequently reducing the dividends available to shareholders.
A review of the bank’s financial statements indicated that the institution was responsible for a total of 25 regulatory violations during the review period, resulting in penalties that varied from N85.3 million in 2021 to N345.70 million in 2025. This reflects an increase of N262.36 million, which corresponds to a 305.10 percent rise.
In 2021, the bank faced a cumulative penalty of N85.33 million, all of which was levied by the Central Bank of Nigeria (CBN) due to five violations. These ranged from N900,000 for the late submission of returns to N60 million for infractions related to foreign exchange.
Additionally, the bank was penalised N14.28 million for a cryptocurrency violation and N5.15 million for breaching the credit policy manual. Furthermore, the institution incurred a penalty of N5 million for exceeding permissible bank charges.
In 2022, Fidelity Bank experienced its lowest number of violations, totaling three, with overall penalties reaching N100.74 million. This amount comprised N85.71 million for cryptocurrency infractions, N10 million for late returns, and N5 million for employment infractions, all of which were imposed by the CBN.
The financial statements of the bank additionally indicated that the pattern of regulatory infractions persisted in 2023. Throughout the year, there were four regulatory violations that resulted in the bank incurring a total of N42.96 million in penalties.
This included an infraction related to the Nigeria Electricity Market Stabilisation Facility (NEMSF) amounting to N26.26 million, late submissions totaling N4 million, and a violation concerning AML/CFT/CPT of N10 million – all of which were sanctioned by the CBN. Furthermore, the Nigerian Exchange (NGX) imposed a penalty of N2.7 million on the bank for a report filing infraction.
The bank recorded a total of N71.28 million in penalties for four distinct contraventions in 2024, all of which were imposed by the CBN. During the year, a penalty of N27.28 million was incurred due to cash shortages, along with N24 million for AML/CFT infractions. Furthermore, the bank faced a penalty of N12 million for a filing violation and an additional N8 million for breaches related to Risk-Based Supervision.
The year 2025 saw the highest number of infractions recorded, totaling 9, alongside the peak penalty value of N345.7 million. The most significant penalty was N150 million for a Cash/SPO (Second Party Opinion) violation, which was matched by a cybesec assessment penalty of N150 million, both enforced by the CBN. Additionally, the apex regulator levied a penalty of N20 million against the bank for a risk assessment violation.
Moreover, during 2025, four penalties were issued for various report filing violations, detailed as follows: N2.72 million (Securities and Exchange Commission (SEC)), N12 million (CBN), N6 million (SEC), and N9.8 million (NGX). The CBN also imposed a penalty of N20 million for a risk assessment violation.
Industry stakeholders have expressed discontent regarding the spate of regulatory infractions and their attendant penalties which impact on the balance sheet of the affected companies.
One of such stakeholders is Mr. Boniface Okezie, the National President of the Progressive Shareholders Association, who cautioned the banks to eliminate the spate of regulatory infractions and their attendant penalties.
“The banks and other subsidiaries should be careful in their operations because the penalties impact on profitability and reduce the dividends payable to the shareholders,” Okezie said in a different interview.
Mrs. Bisi Bakare, the National Co-ordinator of the Pragmatic Shareholders Association of Nigeria, has also urged the banks to enhance their professionalism in operations, stating that “the funds allocated for penalties represent a significant drain on the banks’ resources.”
Fidelity Bank delivered a strong top-line performance for the financial year 2025, reflecting sustained growth in our core banking activities. While strategic investments and a challenging operating environment influenced net profitability, our balance sheet remains robust and well-capitalised for future opportunities.
Key financial metrics for the year ended 31 December 2025 include:
Gross Earnings: N1.52 trillion, a significant increase from N1.04 trillion in 2024.
Net Interest Income: N831.4 billion, up from N629.8 billion in the previous year.
Profit Before Tax: N347.7 billion, compared to N385.2 billion in 2024.
Profit After Tax: N242.4 billion, compared to N278.1 billion in 2024.
Total Assets: Grew to N10.46 trillion from N8.82 trillion in 2024.
Total Equity: Increased to N1.09 trillion from N897.9 billion in 2024.
Earnings Per Share (EPS): 580 kobo.
The Board did not propose a dividend for the 2025 financial year in line with the strategy to bolster its capital base for long-term growth.
The bank successfully raised N227 billion in fresh capital through a Private Placement in December 2025. This increased its eligible capital to N532.6 billion, comfortably exceeding the new CBN regulatory minimum of N500 billion for banks with international authorisation.
On stock market performance, Fidelity Bank closed its last trading day (Friday, June 5, 2026) at N20.70 per share on the Nigerian Exchange (NGX), recording a 3.5 percent gain over its previous closing price of N20.00. The stock began the year with a share price of N19.00 and has since gained 8.95 percent on that price valuation.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
