Fidelity Bank Drops by 11% amidst Lingering Earnings Delay
Tier-2 lender with a ‘hanging’ judgement debt Fidelity Bank Plc lost more than 11% of its market value on the Nigerian Exchange (NGX) as investors wound down positions amidst sustained delay in earnings release.
Trading data from the Nigerian Exchange (NGX) showed that the market value of Fidelity Bank Plc’s 50.212 billion shares outstanding was reduced below N1 trillion.
This confirmed its shareholders are getting tired of the earnings delay, fuelling random sell pressures. Fidelity Bank’s share price declined to N18.45 as 10.117 million units valued at N207.440 million were traded on Friday.
The bank experienced increased trading activities, most of which were driven by investors seeking to reduce their exposure to the tier-2 lender. Fidelity Bank share price traded between N18.45 and N20.75 on Nigerian Exchange last week.
The bank share price has been locked behind its 52 week high as delay in earnings release sends negative signal about the financial institution over the post-Supreme Court judgment that awarded N225 billion in damages against the bank.
The Nigerian Supreme Court ordered Fidelity Bank to pay N225 billion in damages to Sagecom Concept Ltd in April 2025, stemming from a legacy case involving the bank’s acquisition of FSB International Bank.
While media reports linked the ruling to potential bankruptcy, Fidelity Bank and the Central Bank of Nigeria (CBN) have denied these claims, stating the bank can meet its obligations.
The market anticipates the release of its first half 2025 earnings release to capture further details about the obligation, which has no recourse for another hearing.
While other big banks have released their half year results, Fidelity Bank Plc has yet to obtain regulatory approval to make the publication available.
The market value of Fidelity Bank Plc’s 50.212 billion shares outstanding on the Nigerian Exchange decelerated by 11.1% week on week to N926.415 billion – about 18% discount to its highest value attained in 52 weeks.
