Fidelity Bank hits N1trn market cap, profit surge boost investor confidence

Fidelity Bank Plc has officially joined Nigeria’s elite league of trillion-naira financial institutions after its market capitalisation crossed the N1 trillion threshold at the close of trading on Wednesday.

According to data from the Nigerian Exchange Group (NGX), the bank’s share price rose by 1.27%, from N19.75 on Tuesday to N20.00, pushing its total valuation from N991.6 billion to N1 trillion.

This historic feat makes Fidelity Bank the latest addition to the exclusive group of Nigerian banks with a market cap above N1 trillion — a list that includes Zenith Bank, Access Holdings, United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO), and First Bank Holdings.

Fidelity Bank’s impressive market performance comes just weeks after its Managing Director and Chief Executive Officer, Nneka Onyeali-Ikpe, increased her equity stake in the bank with the purchase of 20 million shares in two separate transactions.

Regulatory filings on the NGX revealed that she acquired 18 million shares on May 21, and an additional 2 million shares on May 22, at an average price of N18.60 per share, amounting to a total investment of N37.2 million.

Following these acquisitions, Onyeali-Ikpe’s total shareholding rose from 94.64 million shares as of December 31, 2024, to 114.64 million shares — signaling strong confidence in the bank’s long-term growth trajectory.

Market analysts have described the CEO’s share buy as a “positive signal” to investors, reflecting the leadership’s strong belief in the bank’s profitability and sustainability.

The bank’s rise to the N1 trillion mark also aligns with its strong first-quarter (Q1) 2025 financial performance, where it reported a 167.8% year-on-year growth in profit before tax (PBT), reaching N105.8 billion.

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This significant jump in earnings has further boosted investor confidence, positioning Fidelity Bank as one of the fastest-growing and best-performing tier-2 banks in Nigeria’s financial sector.

“Fidelity Bank’s consistent earnings growth, combined with shareholder-friendly moves from top executives, is a clear indicator of strong fundamentals and a well-executed growth strategy,” said Ayo Bakare, Head of Equities Research at Lagos-based Nova Finance.

The bank’s entry into the trillion-naira club is seen as a testament to the broader rebound in investor confidence within Nigeria’s financial markets, particularly amid the Central Bank’s recapitalisation push and economic reforms targeting inflation and exchange rate stability.

Fidelity Bank’s performance also reflects a shift in investor appetite toward fundamentally strong stocks with high growth potential in both earnings and capital appreciation.

As the financial sector prepares for recapitalisation, Fidelity Bank’s recent milestones — from market valuation growth to increased insider ownership — suggest it is well-positioned to expand its footprint and strengthen its competitiveness in the evolving Nigerian banking landscape.

With strong leadership, rising profitability, and a growing investor base, Fidelity Bank appears poised to sustain its upward momentum and deliver long-term value to shareholders