Leading financial institution, Fidelity Bank Plc, has reentered the trillion-naira market capitalisation club, after its share price rose by 5.3%, climbing from N19.95 to N21.00 on May 13, 2025, according to data from the Nigerian Exchange Limited (NGX). This latest development also brings the total number of Nigerian companies with a trillion-naira market capitalisation to 19.

According to a report published on Techcabal website, the bank had previously dropped below the threshold on May 12, marking another fluctuation in its valuation. Earlier in the year, 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). However, it fell below the mark on April 7 before reclaiming its position on April 23.

With 50.2 billion outstanding shares, the valuation reflects renewed investor confidence and signals Fidelity?s potential transition to tier-1 status. Analysts believe the bank is well-positioned to meet the Central Bank?s N500 billion ($311.9 million) minimum capital requirement 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.?

The stock has surged 141% in the past year, up from N8.70 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.

That momentum carried into 2025, with Q1 after-tax profit soaring 190% to N91 billion ($56.8 million), driven by higher interest income, forex gains, and cost efficiencies.

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

A report from Proshare noted the NGX Banking Index gained 6.96% in Q1 2025, driven by recapitalisation efforts that injected N2.4 trillion into the sector. Fidelity was the NGX?s third most-traded stock between February and May.

According to Mohammed, Fidelity?s high net interest margin and low-cost deposit base enhance its appeal. On February 8, it completed the first phase of its capital raise with 237% oversubscription. CEO Nneka Onyeali-Ikpe confirmed plans to conclude the next phase before H2 2025.

The bank?s Vision 2025 agenda includes expanding internationally?starting with its 2023 acquisition of Union Bank UK?and securing tier-1 status.

Afrinvest projects continued growth, with gross earnings and pre-tax profit forecasted to rise 46% and 49.4% respectively in 2025, reaching N1.5 trillion and N415.4 billion. The firm maintains a 12-month target price of N21.60 for the stock.

With robust earnings, a solid recapitalisation strategy, and growing investor interest, Fidelity is positioning itself as a strong contender in Nigeria?s top banking tier.

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