Fidelity Bank Rejoins Trillion-Naira Market Cap Club

Fidelity Bank Plc has regained its position among Nigeria’s elite companies with a market capitalization above N1 trillion, following a 5.3% jump in its share price to N21.00 on May 13, 2025.

The bank had briefly dropped below the threshold on May 12, after initially crossing the N1 trillion mark on April 4. It also dipped in early April but recovered by April 23, and has now re-entered the trillion-naira club, which currently consists of 19 companies on the Nigerian Exchange.

Read Also:

• Fidelity Bank Announces Capital Raise via Private Placement
• Fidelity Bank Raises Share Capital to N36.7bn
• Shareholders Alarmed Over Rising AMCON Levies on Access, GTCO, Other Banks

Analysts attribute the rebound to investor confidence fueled by strong first-quarter results and expectations of further capital growth. With 50.2 billion outstanding shares, the current valuation suggests Fidelity is on track to meet the Central Bank of Nigeria’s N500 billion capital requirement through equity.

According to Chapel Hill Denham analyst Nabila Mohammed, the bank’s solid Q1 performance and favorable fundamentals continue to support its stock. The lender recorded a 190% year-on-year surge in profit after tax to N91 billion, bolstered by higher interest income, foreign exchange gains, and improved operational efficiency.

In the past 12 months, the stock has risen 141%, climbing from N8.70 in May 2024. The bank has also benefited from industry-wide recapitalisation efforts that injected N2.4 trillion into the sector in early 2025.

As the third most-traded stock between February and May, Fidelity has attracted strong demand. Its low-cost deposit structure and strong net interest margin have made it particularly appealing to investors.

Fidelity completed the first phase of its capital-raising initiative with a 237% oversubscription and aims to conclude the second phase before the second half of the year. The bank is also pursuing international expansion, having acquired Union Bank UK in 2023, and is eyeing tier-1 status.

Projections by Afrinvest place the bank’s 2025 gross earnings at N1.5 trillion, with profit before tax expected to rise to N415.4 billion. The firm has set a 12-month target price of N21.60 for the stock.