Prime Business AfricaFidelity Bank has again joined the trillion-naira club in the Nigerian stock market after its share appreciated by 1.26 percent at the close of trading on Wednesday, June 25.
According to data obtained from the Nigerian Exchange Limited (NGX), Fidelity Bank’s share price increased from N19.75 kobo per share on June 24 to N20, indicating an increase of N0.25 within five hours of trading.
Join our WhatsApp ChannelPrime Business Africa gathered that the increase in the company’s share price occurred after stock market investors traded 82.97 million shares of the financial institution at a value of N1.65 billion earlier today.
After the cost of buying its shares increased by N1, Fidelity Bank’s market capitalisation or valuation crossed the trillion-naira mark, rising from N991.69 billion reported the previous day, to N1 trillion.
Also, the company’s shareholders’ investment value increased by 1.26 percent, as they recorded a combined gain of N12.55 billion within five hours of trading, according to Prime Business Africa’s analysis.
This is the second time Fidelity Bank will make it into the trillion-naira club of the stock market, as the company’s market valuation hit N1,05 trillion on May 13, however, it dropped out of the trillion-naira stock list after reports on May 19 alleged that the lender hoarded information – from its shareholders – regarding a N225 billion damages ruling awarded to a Nigerian firm, Sagecom Concepts Limited, against the bank and another company, G. Cappa Plc.
Prime Business Africa had reported that the debt issue had affected investors’ confidence in the bank, as sell-off trailed the company in the stock market.
Since then, Fidelity Bank’s shares have been trading below N20 per share until earlier today when the share price rose to N20 per share.
HOW FIDELITY BANK RECLAIMED TRILLION-NAIRA POSITION
To boost investors’ confidence, Fidelity Bank clarified that the damage fee is either N14 billion or N30.7 billion — not N225 billion damages as reported — depending on the exchange rate used.
The company also added that the bulk of the sum falls on G. Cappa, while the bank accounts for a small portion.
Another step taken to assure investors that Fidelity Bank is a going concern, and not going bankrupt due to the reported damages, which was 58.44 percent of its N385 billion profit before tax (PBT) in 2024, Nneka Onyeali-Ikpe, the lender’s Managing Director (MD) and Chief Executive Officer (CEO), acquired 18 million shares in the bank, worth N366 million.
Also, Fidelity Bank vested 105,904,576 shares to its workers through the company’s staff share loan shares scheme between May 23 and June 4.
The breakdown showed that on May 23, 26.63 million shares were vested to 67 workers, worth N496,71 million based on the day’s trading price.
On June 4, 24.66 million shares were vested to 51 staff members, worth N468.58 million, based on the day’s trading price, on June 16, over 8.60 million shares were vested to 29 workers, worth N157.54 million, based on the day’s trading price, and on June 23, about 45.99 million shares were vested to 12 workers, worth N873.99 million, based on the day’s trading price.
Within May 23 till date, Fidelity Bank’s share price has appreciated by 15.27 percent, surpassing the 9.18 percent increase recorded in the second quarter (Q2) before the report came out and the 11.76 percent appreciation recorded in the first quarter.
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