Fidelity Bank Reenters Trillion-Naira Market Capitalisation Club

Strategic Insights -

Fidelity Bank Plc, a prominent Nigerian bank, has reclaimed its position in the trillion-naira market capitalisation club, driven by a surge in its share price. The bank's stock price rose by 5.3% on May 13, 2025, from ?19.95 to ?21.00, according to data from the Nigerian Exchange Limited (NGX). This achievement brings the total number of Nigerian companies with a trillion-naira market capitalisation to 19. The bank's valuation reflects renewed investor confidence and signals its potential transition to tier-1 status.

Key Takeaways:

  • Fidelity Bank Plc reentered the trillion-naira market capitalisation club after its share price rose by 5.3% on May 13, 2025, from ?19.95 to ?21.00.
  • The bank had previously dropped below the threshold on May 12, 2025, marking another fluctuation in its valuation.
  • Fidelity Bank Plc first reached the trillion-naira milestone on April 4, 2025, joining tier-1 banks such as Zenith Bank, Guaranty Trust Holding Company (GTCO), Access Holdings, First HoldCo, and United Bank for Africa (UBA).
  • The bank has 50.2 billion outstanding shares, and its valuation reflects renewed investor confidence and signals its potential transition to tier-1 status.
  • Analysts believe the bank is well-positioned to meet the Central Bank's ?500 billion ($311.9 million) minimum capital requirement through equity.
  • The bank's stock has surged 141% in the past year, up from ?8.70 in May 2024.
  • Meksley Nwagboh, Head of Brand and Communications, attributed the rally to a 189% rise in 2024 after-tax profit, the highest among Nigeria's top 10 banks.
  • The bank's Q1 after-tax profit soared 190% to ?91 billion ($56.8 million), driven by higher interest income, forex gains, and cost efficiencies.
  • The NGX Banking Index gained 6.96% in Q1 2025, driven by recapitalisation efforts that injected ?2.4 trillion into the sector.
  • Fidelity was the NGX's third most-traded stock between February and May.
  • On February 8, 2025, it completed the first phase of its capital raise with 237% oversubscription.
  • The bank's Vision 2025 agenda includes expanding internationally and securing tier-1 status.

Statistics:

  • 5.3% - increase in Fidelity Bank Plc's share price on May 13, 2025.
  • ?19.95 - Fidelity Bank Plc's share price before the increase on May 13, 2025.
  • ?21.00 - Fidelity Bank Plc's share price after the increase on May 13, 2025.
  • 19 - total number of Nigerian companies with a trillion-naira market capitalisation.
  • 50.2 billion - outstanding shares of Fidelity Bank Plc.
  • ?8.70 - Fidelity Bank Plc's share price in May 2024.
  • 141% - surge in Fidelity Bank Plc's stock price in the past year.
  • 189% - rise in 2024 after-tax profit, the highest among Nigeria's top 10 banks.
  • ?91 billion - Fidelity Bank Plc's Q1 after-tax profit.
  • $56.8 million - Fidelity Bank Plc's Q1 after-tax profit in USD.
  • 6.96% - gain in the NGX Banking Index in Q1 2025.
  • ?2.4 trillion - recapitalisation efforts injected into the sector in Q1 2025.
  • 237% - oversubscription in the first phase of Fidelity Bank Plc's capital raise.
  • ?1.5 trillion - projected gross earnings of Fidelity Bank Plc in 2025.
  • ?415.4 billion - projected pre-tax profit of Fidelity Bank Plc in 2025.

Sources:

  • Nigerian Exchange Limited (NGX)
  • Techcabal website
  • Proshare
  • Afrinvest