Fidelity Bank Regains Trillion-Naira Market Capitalization as Stock Hits ₦21

Lagos, Nigeria –Fidelity Bank Plc has once again crossed the trillion-naira market capitalization mark, with its share price surging by 5.3% from ₦19.95 to ₦21.00 on May 13, 2025, according to data from the Nigerian Exchange Limited (NGX). This upward movement brings the total number of Nigerian companies with a trillion-naira market cap to 19. 

The bank had briefly fallen below this threshold on May 12th, marking a recent fluctuation in its valuation. Fidelity Bank first achieved trillion-naira status on April 4, 2025, joining the ranks of tier-1 banks like Zenith Bank, GTCO, Access Holdings, First HoldCo, and UBA. It subsequently dipped below on April 7th before reclaiming its position on April 23rd.

With 50.2 billion outstanding shares, this valuation reflects renewed investor confidence and strengthens Fidelity’s potential transition to tier-1 status. Analysts believe the bank is well-positioned to meet the Central Bank’s ₦500 billion minimum capital requirement through equity.

Nabila Mohammed, an analyst at Chapel Hill Denham, noted that the bank’s strong Q1 results suggest continued upward momentum in its stock, potentially boosting investor confidence and sustaining its valuation.

The stock has experienced a significant surge of 141% in the past year, rising from ₦8.70 in May 2024. Meksley Nwagboh, Head of Brand and Communications at Fidelity Bank, attributed this rally to a 189% increase in the bank’s 2024 after-tax profit, the highest among Nigeria’s top 10 banks.

This positive momentum continued into 2025, with Q1 after-tax profit soaring by 190% to ₦91 billion, driven by higher interest income, forex gains, and cost efficiencies.

Olamide, a Lagos-based banking analyst, highlighted that lower credit losses contributed to a boost in net interest income. Combined with strong full-year results and dividend expectations, the bank’s fundamentals are attracting investors.

A Proshare report indicated that the NGX Banking Index gained 6.96% in Q1 2025, fueled by recapitalization efforts that injected ₦2.4 trillion into the sector. Fidelity was the NGX’s third most-traded stock between February and May.

According to analyst Mohammed, Fidelity’s high net interest margin and low-cost deposit base further enhance its appeal. The bank completed the first phase of its capital raise on February 8th with a 237% oversubscription. CEO Nneka Onyeali-Ikpe has confirmed plans to conclude the next phase before the second half of 2025.

Fidelity Bank’s Vision 2025 agenda includes international expansion, starting with the 2023 acquisition of Union Bank UK, and achieving tier-1 status.

Afrinvest projects continued growth for the bank, forecasting a 46% increase in gross earnings and a 49.4% rise in pre-tax profit in 2025, reaching ₦1.5 trillion and ₦415.4 billion respectively. The firm maintains a 12-month target price of ₦21.60 for the stock.

With strong earnings, a solid recapitalization strategy, and increasing investor interest, Fidelity Bank is solidifying its position as a strong contender in Nigeria’s top-tier banking sector.