By Ayomide Otitoju
Fidelity Bank Plc has reclaimed its position in Nigeria’s elite trillion-naira market capitalisation club following a 5.3% rise in its share price, climbing from ₦19.95 to ₦21.00 on May 13, 2025, according to data from the Nigerian Exchange Limited (NGX).
This development marks a renewed show of investor confidence in the mid-tier lender and raises the number of Nigerian companies with a market capitalisation above ₦1 trillion to 19. The bank had briefly dipped below the threshold on May 12, after initially hitting the milestone on April 4, before sliding on April 7 and regaining ground again on April 23.
With 50.2 billion outstanding shares, Fidelity’s valuation reflects strong market sentiment and growing optimism around its potential upgrade to tier-1 status. Analysts say the bank is well-placed to meet the Central Bank of Nigeria’s new ₦500 billion minimum capital requirement, largely through equity offerings.
“The strong Q1 earnings suggest further momentum in the stock’s performance,” said Nabila Mohammed, an analyst at Chapel Hill Denham. “It’s a sign of investor confidence, supported by fundamentals.”
The bank’s share price has surged 141% over the past year, rising from ₦8.70 in May 2024. According to Meksley Nwagboh, Head of Brand and Communications, this is linked to a record 189% jump in after-tax profit in 2024 — the highest among Nigeria’s top 10 banks.
That performance has continued into 2025, with Fidelity posting a 190% increase in Q1 profit to ₦91 billion, driven by higher interest income, foreign exchange gains, and improved cost management.
“Lower impairment charges helped boost net interest income,” said Lagos-based banking analyst Olamide. “Coupled with dividend prospects and strong FY results, the stock remains attractive to investors.”
Proshare also reported that the NGX Banking Index rose 6.96% in Q1 2025, buoyed by sector-wide recapitalisation that injected ₦2.4 trillion into Nigerian banks. Fidelity emerged as the third most-traded stock between February and May.
Fidelity’s strong fundamentals include a high net interest margin and a low-cost deposit base. The bank’s capital-raising efforts have also gained momentum, with the first phase completed at 237% oversubscription. CEO Nneka Onyeali-Ikpe confirmed that the second phase will be concluded before the second half of the year.
The bank’s Vision 2025 strategy includes expanding its international footprint, beginning with the acquisition of Union Bank UK in 2023, and attaining tier-1 status.
Afrinvest projects further growth for the bank, forecasting a 46% rise in gross earnings and a 49.4% jump in pre-tax profit in 2025, reaching ₦1.5 trillion and ₦415.4 billion, respectively. The firm maintains a 12-month price target of ₦21.60.
With strong earnings, a successful recapitalisation plan, and rising investor interest, Fidelity Bank is increasingly positioning itself as a formidable player among Nigeria’s leading financial institutions.
