Connect with us

Banking/Finance

Fidelity Bank reclaims trillion-naira market cap as stock rises to ₦21

Published

on

Leading financial institution, Fidelity Bank Plc, has reentered the trillion-naira market capitalisation club, after its share price rose by 5.3%, climbing from ₦19.95 to ₦21.00 on May 13, 2025, according to data from the Nigerian Exchange Limited (NGX). This latest development also brings the total number of Nigerian companies with a trillion-naira market capitalisation to 19.

According to a report published on Techcabal website, the bank had previously dropped below the threshold on May 12, marking another fluctuation in its valuation. Earlier in the year, Fidelity Bank Plc first reached the trillion-naira milestone on April 4, 2025, joining tier-1 banks such as Zenith Bank, Guaranty Trust Holding Company (GTCO), Access Holdings, First HoldCo, and United Bank for Africa (UBA). However, it fell below the mark on April 7 before reclaiming its position on April 23.

Advertisement

With 50.2 billion outstanding shares, the valuation reflects renewed investor confidence and signals Fidelity’s potential transition to tier-1 status. Analysts believe the bank is well-positioned to meet the Central Bank’s ₦500 billion ($311.9 million) minimum capital requirement through equity.

“The strong Q1 results suggest continued upward momentum in its stock,” said Nabila Mohammed, an analyst at Chapel Hill Denham. “This could boost investor confidence and help sustain its valuation.”

Advertisement

The stock has surged 141% in the past year, up from ₦8.70 in May 2024. Meksley Nwagboh, Head of Brand and Communications, attributed the rally to a 189% rise in 2024 after-tax profit—the highest among Nigeria’s top 10 banks.

That momentum carried into 2025, with Q1 after-tax profit soaring 190% to ₦91 billion ($56.8 million), driven by higher interest income, forex gains, and cost efficiencies.

Advertisement

“Lower credit losses helped boost net interest income,” said Olamide, a Lagos-based banking analyst. “Combined with solid full-year results and dividend expectations, the bank’s fundamentals are attracting investors.”

A report from Proshare noted the NGX Banking Index gained 6.96% in Q1 2025, driven by recapitalisation efforts that injected ₦2.4 trillion into the sector. Fidelity was the NGX’s third most-traded stock between February and May.

Advertisement

According to Mohammed, Fidelity’s high net interest margin and low-cost deposit base enhance its appeal. On February 8, it completed the first phase of its capital raise with 237% oversubscription. CEO Nneka Onyeali-Ikpe confirmed plans to conclude the next phase before H2 2025.

The bank’s Vision 2025 agenda includes expanding internationally—starting with its 2023 acquisition of Union Bank UK—and securing tier-1 status.

Advertisement

Afrinvest projects continued growth, with gross earnings and pre-tax profit forecasted to rise 46% and 49.4% respectively in 2025, reaching ₦1.5 trillion and ₦415.4 billion. The firm maintains a 12-month target price of ₦21.60 for the stock.

With robust earnings, a solid recapitalisation strategy, and growing investor interest, Fidelity is positioning itself as a strong contender in Nigeria’s top banking tier.

Advertisement
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Cover7 minutes ago

Hon. Dr. Lanre Oyegbola-Sodipo Marks Democracy Day with a Call to Uphold Democratic Values

Cover3 days ago

Glo Celebrates 20 Years of Ojude Oba Sponsorship with Grand Festivities, Car and Tricycle Giveaways

Cover3 days ago

AGF Clears Fidelity Bank CEO of Criminal Charges, Reaffirms Commitment to Justice

Cover4 days ago

Tensions Melt as Tinubu Forgives Sanwo-Olu After High stakes GAC Plea

Cover4 days ago

Adron Homes Illuminates Ojude Oba Festival 2025, Pays Homage to Awujale of Ijebuland

Cover4 days ago

Globacom Kicks Off 20th Ojude Oba Sponsorship with Star-Studded Musical Night in Ijebu Ode

Cover5 days ago

Fidelity Bank Brings Relief to Ihie Community with Food Bank Initiative

Cover6 days ago

Oluko of Uko Celebrates First Eid El Kabir with Community, Offers Prayers for Peace and Prosperity

Cover1 week ago

Fitch Upgrades Fidelity Bank’s National Rating to ‘A+(nga)’, Affirms Long-Term IDR at ‘B’

Cover2 weeks ago

Roam Freely: Glo Introduces Budget-Friendly Roaming Plans for Saudi Arabia, Tailored for Hajj Pilgrims

Cover2 weeks ago

FG Launches Digital Village Project with Glo, Huawei to Connect Remote Communities

Cover2 weeks ago

Aare Adetola Emmanuelking Conferred with Inaugural “Knight of Faith” Title by CAN South West

Cover2 weeks ago

ACAMB Promotes Banker Wellness with Aerobics Fitness Event at Eko Atlantic

Banking/Finance2 weeks ago

Fidelity Bank to Host Third Edition of FITCC Expo in Atlanta, USA

Cover2 weeks ago

Adron Homes Unveils Grand Ileya Promo with Discounts, Celebrity Endorsements, and Festive Gifts