Fidelity Bank Drops as Earnings Delay Stokes Pressure
Fidelity Bank Plc market value declined by about 3% in the stock market as earnings delay stoked sell pressures in the tier-2 lender shares, based on trading data obtained from the Nigerian Exchange.
Investment firm Apel Asset Limited downgraded Fidelity Bank share to sell on the notion that the Tier-2 lender has 15.66% downside potential. Analysts at the firm estimated Fidelity Bank fair value at N17.71, trading above its reference price of N21.
Stock analysts at Atlass Portoflio Limited kept the bank stock on hold, taking a neutral positions on the back of a limited upside potential of 9.52%.
The bank experienced huge trading volume of 30.556 million, but most of the transactions executed in the stock market were dominated by sell side investors who sought to exit positions.
Hence, the bank share price declined by about 3% to N20.4, from N21 at the close of trading session last week. NGX data revealed that Fidelity Bank share price has been trading within tight range, from N20.4 and N21.3.
There are issues hanging on the bank that investors and market analysts are expecting to see how it is treated in the financial statement for the first half of 2025.
The market, and analysts are looking forward to see how Fidelity Bank will treat the Supreme Court judgement which is significant to the bank’s net asset value and overall going concern its book.
The event is expected to be captured in the audited financial statement for the first half of 2025 as an event before the balance date.
In a regulatory filing, Fidelity Bank Plc inform its esteemed shareholders, Nigerian Exchange Limited (NGX), and other stakeholders of a delay in publication of its Audited Financial Statements (AFS) for the half year ended June 30, 2025.
The bank said the financial result is currently being reviewed and upon completion of the audit shall be presented to the Central Bank of Nigeria for regulatory approval.
Then, the bank said the audited report will be published on Nigerian Exchange in compliance with the provisions of Nigerian Exchange Limited’s Rulebook and other relevant statutes/regulations.
Fidelity Bank Plc.’s 50.212 billion shares outstanding were valued at N1.024 trillion on the Nigeria Exchange, trading at discount to its highest value in 52-week. Shareholders’ year to date return settled at 20%, significantly underperforming Nigerian Exchange growth. First Holdco Drops by 5.6% on Negative Investors Sentiment
