Fidelity Bank Shares Rise as Earnings Outlook Boosts Shareholder Confidence
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Nigeria’s tier-2 lender, Fidelity Bank Plc, saw improved shareholder sentiment following the release of its earnings for the first half and third quarter of 2025.
The bank’s 50.212 billion shares were valued at N964.074 billion at Friday’s close, marking a N10.042 billion weekly gain. The share price rose to N19.20 amid increased trading activity, driven by influential shareholders increasing positions in anticipation of stronger Q4 earnings. Over 29 million shares, valued at N560.36 million, changed hands during the period.
Analysts project a balanced earnings performance for Fidelity Bank as the year-end approaches. Regulatory pressures continue to affect the broader banking sector, with many tier-1 lenders recording year-on-year earnings declines, except for UBA, according to MarketForces Africa.
Fidelity Bank’s unaudited results for the first nine months of 2025 showed a net profit decline of 5.7% to N211.7 billion. This occurred despite a 38.8% increase in interest income and a 69.8% reduction in credit impairment charges.
CardinalStone Securities Limited noted that Fidelity Bank’s retained earnings returned to positive territory after recovering from a negative position in the second half of the previous year. This followed transfers of about N303 billion to regulatory risk reserves due to the exit of approximately N800 billion in forbearance loans.
The bank’s asset quality remained strong, with non-performing loans (NPLs) moderating by 1.6% year-on-year. The NPL ratio now stands at 2.2%, down from 2.6%, well below the 5% benchmark for the banking sector.
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