Fidelity Bank Plc has reclaimed its place among Nigeria’s elite trillion-naira companies. This comes after a 5.3% rise in its share price, from ₦19.95 to ₦21.00, on May 13, 2025. According to the Nigerian Exchange Limited (NGX), this development brings the number of companies with market capitalisation above ₦1 trillion to 19.
Fluctuations and Investor Sentiment
As reported by TechCabal, Fidelity had briefly dropped below the threshold on May 12. This marked another shift in its valuation. The bank first crossed the trillion-naira mark on April 4, 2025, joining tier-1 institutions like Zenith Bank, GTCO, Access Holdings, First HoldCo, and UBA. However, it slipped below the milestone on April 7 before rebounding on April 23.
With 50.2 billion outstanding shares, the bank’s latest valuation signals renewed investor confidence. Analysts say it also highlights Fidelity’s growing potential to join Nigeria’s top banking tier. The bank appears well-positioned to meet the Central Bank of Nigeria’s ₦500 billion ($311.9 million) 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.”
Strong Financials and Recapitalisation Drive Rally
Fidelity’s stock has soared by 141% in the past year, climbing from ₦8.70 in May 2024. Meksley Nwagboh, Head of Brand and Communications, attributed this rally to a 189% increase in 2024 after-tax profit, the highest among Nigeria’s top 10 banks.
The momentum has carried into 2025. In Q1, after-tax profit surged by 190% to ₦91 billion ($56.8 million), driven by higher interest income, forex gains, and cost controls.
“Lower credit losses helped boost net interest income,” noted Olamide, a Lagos-based analyst. “Alongside strong full-year results and dividend prospects, the bank’s fundamentals are drawing in investors.”
According to Proshare, the NGX Banking Index gained 6.96% in Q1 2025. This growth was supported by recapitalisation efforts that injected ₦2.4 trillion into the sector. Fidelity also ranked as the NGX’s third most-traded stock between February and May.
Mohammed added that 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 a 237% oversubscription. CEO Nneka Onyeali-Ikpe confirmed that the next phase will conclude before the second half of 2025.
The bank’s Vision 2025 strategy includes international expansion. It began with the 2023 acquisition of Union Bank UK. Ultimately, Fidelity aims to secure tier-1 status.
Afrinvest expects further growth. It projects gross earnings and pre-tax profit to rise by 46% and 49.4% respectively in 2025, reaching ₦1.5 trillion and ₦415.4 billion. The firm also maintains a 12-month target price of ₦21.60 for the stock.
With robust earnings, a clear capital plan, and rising investor interest, Fidelity Bank is strengthening its position as a top contender in Nigeria’s banking sector.
