Fidelity Bank rejoins trillion-Naira market cap club amid record-breaking profit

Fidelity Bank Plc has regained its place among Nigeria’s elite trillion-naira market capitalization companies, following a surge in its share price by 5.3% on May 13, 2025.

The bank’s stock rose from ₦19.95 to ₦21.00, according to data from the Nigerian Exchange Limited (NGX), pushing its market value back above the trillion-naira mark and bringing the total number of such companies in Nigeria to 19.

The rebound marks a swift recovery after Fidelity briefly dipped below the threshold on May 12.

This latest climb underscores a broader wave of investor optimism driven by the bank’s strong financial performance and strategic positioning.

Fidelity Bank had first crossed the trillion-naira milestone on April 4, 2025, joining the ranks of tier-1 financial institutions such as Zenith Bank, Guaranty Trust Holding Company (GTCO), Access Holdings, First Bank Holdings (First HoldCo), and United Bank for Africa (UBA). However, its valuation briefly fell below the mark on April 7 before being restored on April 23.

With 50.2 billion shares outstanding, Fidelity Bank’s current valuation reflects growing investor confidence and signals a potential ascent into Nigeria’s top banking tier.

READ ALSO: Fidelity Bank’s meteoric rise: A new force in Nigeria’s banking sector

Analysts say the bank is well-placed to meet the Central Bank of Nigeria’s new minimum capital requirement of ₦500 billion ($311.9 million), primarily through equity.

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

Fidelity Bank’s stock has experienced a remarkable rally over the past year, surging 141% from ₦8.70 in May 2024 to its current level.

According to Meksley Nwagboh, Head of Brand and Communications at Fidelity Bank, this rally is driven by the bank’s record 189% increase in after-tax profit in 2024—the highest among Nigeria’s top 10 banks.

That performance has carried over into 2025. In the first quarter alone, Fidelity reported an after-tax profit of ₦91 billion ($56.8 million), representing a 190% year-on-year increase.

The profit growth was fueled by higher interest income, foreign exchange gains, and significant cost efficiencies.

“Lower credit losses helped boost net interest income,” noted Olamide, a Lagos-based banking analyst. “Combined with solid full-year results and dividend expectations, the bank’s fundamentals are attracting investors.”

The positive outlook is further bolstered by developments in the broader banking sector. A report from Proshare noted that the NGX Banking Index rose by 6.96% in Q1 2025, supported by industry-wide recapitalisation efforts that have so far injected ₦2.4 trillion into Nigerian banks.

READ ALSO: Shareholders hail Fidelity Bank’s 2024 results, endorse growth plans

During this period, Fidelity was ranked the NGX’s third most-traded stock between February and May.

Analyst Mohammed added that Fidelity’s high net interest margin and low-cost deposit base continue to make it highly attractive to investors.

On February 8, the bank successfully completed the first phase of its capital raise with an impressive 237% oversubscription. CEO Nneka Onyeali-Ikpe has confirmed that the second phase of the raise is on track for completion before the second half of 2025.

Fidelity Bank’s “Vision 2025” strategy outlines its ambition to attain tier-1 status and expand internationally, building on its 2023 acquisition of Union Bank UK. This expansion is part of a broader plan to solidify its position as a leading financial services provider.

According to Afrinvest, the bank is on course for further growth, projecting a 46% increase in gross earnings and a 49.4% rise in pre-tax profit for 2025. These are expected to reach ₦1.5 trillion and ₦415.4 billion, respectively. The firm maintains a 12-month price target of ₦21.60 for Fidelity’s stock.

With robust earnings, a solid recapitalisation roadmap, and surging investor interest, Fidelity Bank is not only reclaiming its spot in the trillion-naira league—it is also emerging as a formidable contender for tier-1 dominance in Nigeria’s banking sector.