Nigerian Bank Hits Significant Milestone as It Set to Meet New CBN Capital Plan

• Fidelity Bank's market capitalisation surpassed N1 trillion, following a 1.27% increase in its share price
• The bank joins financial giants like First Bank, GTB, and Zenith Bank with this significant milestone
• CEO Nneka Onyeali-Ikpe increased her stake in the bank, purchasing a total of 20 million shares

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

With a 1.27% increase in share value at the end of trading, Fidelity Bank's market capitalisation has surpassed N1 trillion.

According to figures from the Nigerian Exchange Group (NGX), the bank’s market capitalisation reached N1 trillion as its share price rose from N19.75 on Tuesday to N20 on Wednesday, June 25th.

This increase boosted the company’s valuation from N991.6 billion to N1 trillion.

Fidelity Bank now joins the ranks of financial organisations that have achieved this milestone, alongside First Bank, Guaranty Trust Bank (GTB), United Bank for Africa (UBA), Zenith Bank, and Access Bank.

The managing director (MD) and CEO of Fidelity Bank, Nneka Onyeali-Ikpe, purchased an additional 18 million shares of the bank on May 21. Two days later, on May 22, she bought 2 million more shares at N18.6 each, amounting to N37.2 million, according to a regulatory filing on the NGX.

As a result of these purchases, Onyeali-Ikpe's ownership of Fidelity Bank increased from 94.64 million shares as of December 31, 2024, to 114.64 million shares.

In its most recent financial performance report, Fidelity Bank announced that its profit before tax (PBT) surged by 167.8% year-over-year, reaching N105.8 billion in the first quarter (Q1) of 2025.

FCMB, other banks to beat CBN recapitalisation

Legit.ng reported that six leading Nigerian banks have been projected to exceed the Central Bank of Nigeria’s (CBN) N500 billion capital requirement.

The banks, which include Zenith Bank, Access Bank, UBA, Guarantee Trust Bank, First Bank, and FCMB, have all raised close to N2.4 trillion ahead of the deadline.

These financial powerhouses have either concluded or are close to concluding capital-raising projects via a mix of strategies, including public offers and private placements.

The lenders have disclosed via separate statements that they are on the verge of competing capital raise programmes by the second half of this year.

The banks were trying to douse investors’ fears regarding CBN’s dividend ban, releasing specific timelines to exit the apex bank’s dividend freeze.

A previous report by Legit.ng detailed the 10 Nigerian banks most likely to beat the N500 billion capital requirement hurdle.

Fidelity Bank speaks on bankruptcy rumours

Legit.ng reported that Fidelity Bank Plc has firmly denied recent media claims that it is on the brink of bankruptcy due to a Supreme Court ruling related to an old $3 million credit facility originally granted by the now-defunct FSB International Bank in 2002.

The bank explained that this issue is part of a longstanding legal dispute inherited following its acquisition of FSB and that it is currently pursuing judicial guidance to clarify the correct calculation of the judgment amount.

In a statement signed by Meksley Nwagboh, Divisional Head of Brand & Communications, Fidelity Bank emphasised its solid financial standing, condemning the reports as false, harmful, and contrary to an existing court order.

Source: Legit.ng