BusinessFidelity Bank Reclaims Trillion-Naira Valuation as Stock Hits ₦21
Published 4 minutes ago on May 14, 2025By Titilayo Olamide
Fidelity Bank Plc has reclaimed its position in Nigeria’s trillion-naira market capitalisation club, following a 5.3% increase in its share price—from ₦19.95 to ₦21.00—on May 13, 2025. This development places the bank among the 19 Nigerian companies with a market capitalisation above ₦1 trillion, according to Nigerian Exchange Limited (NGX) data.
The bank had briefly dipped below the threshold on May 12, but the rally has once again boosted its valuation. Fidelity Bank initially crossed the trillion-naira mark on April 4, 2025, joining top-tier banks such as Zenith Bank, GTCO, Access Holdings, First HoldCo, and UBA. It dropped out on April 7 but regained its position on April 23.
With 50.2 billion outstanding shares, the upward movement reflects growing investor confidence and supports Fidelity’s aspiration to attain tier-1 status. Analysts believe the bank is on track to meet the Central Bank of Nigeria’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.”
Fidelity’s stock has surged by 141% over the past year, rising from ₦8.70 in May 2024. Meksley Nwagboh, Head of Brand and Communications at Fidelity Bank, attributed this impressive rally to the bank’s 189% increase in 2024 after-tax profit—the highest among Nigeria’s top 10 banks.
The bank continued its momentum into 2025, reporting a 190% jump in Q1 after-tax profit to ₦91 billion ($56.8 million), driven by rising interest income, foreign exchange gains, and improved cost efficiencies.
“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.”
Proshare reports that the NGX Banking Index rose by 6.96% in Q1 2025, fueled by recapitalisation efforts that injected ₦2.4 trillion into the banking sector. Fidelity was also named the third most-traded stock on the NGX between February and May.
Mohammed added that Fidelity’s strong net interest margin and low-cost deposit base are key to its market appeal. On February 8, the bank completed the first phase of its capital raise with a 237% oversubscription. CEO Nneka Onyeali-Ikpe confirmed plans to wrap up the next phase before the second half of the year.
The bank’s “Vision 2025” includes international expansion—beginning with the 2023 acquisition of Union Bank UK—and securing a spot among Nigeria’s elite tier-1 banks.
Afrinvest projects a promising outlook for the bank, forecasting a 46% increase in gross earnings and a 49.4% rise in pre-tax profit in 2025, to reach ₦1.5 trillion and ₦415.4 billion respectively. The firm maintains a 12-month stock target price of ₦21.60.
With strong earnings, a solid recapitalisation plan, and rising investor interest, Fidelity Bank is positioning itself as a major force among Nigeria’s top financial institutions.
