By JKNewsMedia
SOARING INVESTOR confidence pushed Fidelity Bank Plc back into the trillion-naira market capitalisation club after its share price surged 5.3% to ₦21.00 on May 13, 2025, up from ₦19.95, according to Nigerian Exchange Limited (NGX) data. This rally increases the tally of Nigerian companies in the elite bracket to 19.
The bank briefly slipped below the threshold on May 12, highlighting continued fluctuations in its valuation. First entering the trillion-naira club on April 4, Fidelity fell out on April 7, only to reclaim its position by April 23—aligning it once more with banking giants like Zenith Bank, GTCO, Access Holdings, First HoldCo, and UBA.
Holding 50.2 billion outstanding shares, the bank’s valuation signals a potential leap into tier-1 status. Analysts believe Fidelity is strategically positioned to meet the Central Bank’s ₦500 billion capital benchmark via equity, spurred by robust earnings and a dynamic capital-raising strategy.
A 141% year-on-year share price rally underscores its momentum, driven by a 189% jump in 2024 after-tax profit—the highest among Nigeria’s top 10 banks. The growth trajectory continued in Q1 2025 with profit after tax rising 190% to ₦91 billion, fuelled by stronger interest income, foreign exchange gains, and operational efficiency.
Fidelity emerged as the NGX’s third most-traded stock between February and May. The NGX Banking Index climbed 6.96% in Q1, supported by ₦2.4 trillion in recapitalisation inflows across the sector.
The bank completed the first phase of its capital raise on February 8, recording 237% oversubscription. CEO Nneka Onyeali-Ikpe confirmed the second phase will conclude before the second half of 2025. Its Vision 2025 plan, anchored on international expansion—beginning with the 2023 acquisition of Union Bank UK—targets tier-1 status.
Afrinvest forecasts a 46% growth in gross earnings and 49.4% rise in pre-tax profit by year-end, projecting ₦1.5 trillion and ₦415.4 billion respectively. Its 12-month share price target remains at ₦21.60.
With record-breaking profits, a successful recapitalisation drive, and growing investor interest, Fidelity continues to position itself among Nigeria’s leading financial institutions.
