Fidelity Bank Reclaims Trillion-Naira Market Cap as Stock Hits ₦21

…Signals renewed investor confidence and path to tier-1 status

Fidelity Bank Plc has once again crossed the trillion-naira market capitalisation threshold, following a 5.3% rally in its share price—from ₦19.95 to ₦21.00—on May 13, 2025. The rebound, captured in data from the Nigerian Exchange Limited (NGX), places Fidelity among a select group of 19 companies currently valued above ₦1 trillion.

The milestone marks a return to form after the bank briefly dipped below the benchmark on May 12. Fidelity first broke into the trillion-naira club on April 4, 2025, joining the ranks of top-tier banks such as Zenith Bank, GTCO, Access Holdings, First Bank HoldCo, and UBA. Since then, its market valuation has fluctuated, falling below the mark on April 7 and recovering on April 23.

With over 50.2 billion shares outstanding, Fidelity’s valuation reflects increasing investor confidence amid strong financial performance and strategic clarity. Market watchers believe the bank is on track to transition into Nigeria’s tier-1 banking league, bolstered by its ability to meet the Central Bank of Nigeria’s new ₦500 billion minimum capital requirement.

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

Over the past year, Fidelity’s stock has surged by 141%, climbing from ₦8.70 in May 2024. The upward trajectory is largely credited to a record-breaking 189% increase in its 2024 after-tax profit—said to be the highest among Nigeria’s top 10 banks.

That performance extended into the current year, with the bank reporting a 190% jump in Q1 2025 profit after tax to ₦91 billion ($56.8 million). The growth was driven by a combination of higher interest income, foreign exchange gains, and enhanced cost efficiency.

“Lower credit losses helped boost net interest income,” said Olamide, a Lagos-based financial analyst. “Coupled with solid annual results and dividend prospects, Fidelity’s fundamentals are catching investors’ eyes.”

According to Proshare, the NGX Banking Index climbed 6.96% in Q1 2025, supported by recapitalisation inflows totaling ₦2.4 trillion. Fidelity stood out as the third most-traded stock on the exchange between February and May.

Analyst sentiment remains bullish. Fidelity’s strong net interest margins, low-cost deposit base, and robust capital raise have positioned it as a standout in the market. On February 8, the bank completed the first phase of its capital raise exercise with a 237% oversubscription. CEO Nneka Onyeali-Ikpe confirmed that the final phase will be concluded before the second half of 2025.

As part of its Vision 2025 strategy, Fidelity is also accelerating its international expansion, following its 2023 acquisition of Union Bank UK—a move seen as part of its long-term plan to cement tier-1 status.

Investment firm Afrinvest projects continued growth for Fidelity Bank, forecasting a 46% rise in gross earnings and a 49.4% increase in pre-tax profit in 2025, amounting to ₦1.5 trillion and ₦415.4 billion respectively. The firm has set a 12-month target price of ₦21.60 for the stock.

With solid financial results, a clear recapitalisation path, and growing investor interest, Fidelity Bank appears well-positioned to emerge as one of Nigeria’s elite financial institutions.