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Research house Chapel Hill Denham Limited maintained their Buy recommendations on Fidelity Bank stock on an increase in net interest income and a robust current account and savings account (CASA) ratio.
However, the research house revised their target price on the lender’s share price downward to N21.70 from N24.37 as Fidelity Bank underperformed the NGXASI index and the NGX Banking index due to delayed publications of its Half-Year (HY) results.
The Bank’s capital adequacy ratio (CAR) improved to 16.10 percent in the first nine months of 2025, from 15.10 percent as at the second quarter of 2025.
It is important to note that the proceeds from Fidelity Bank’s second phase of capital raise exercise is expected to lift its CAR back above 20 percent.
According to analysts at Chapel Hill Denham in a note to clients, the Bank booked a negative retained earnings in the second quarter of the year due to the transfer of N303 billion from retained earnings account to regulatory risk reserves.
“However, we note that, as at nine months 2025 (9M-25) the retained earnings was already in a positive position of N30.76 billion and the proceeds from its second phase of capital raise exercise is expected to lift CAR back above 20 percent,” said analysts at Chapel Hill Denham.
“In terms of its capital raise, management confirmed that its second phase of recapitalisation will include a N259 billion private placement and is expected to conclude the exercise by H2-25,” said analysts at Chapel Hill Denham.
For the first nine months through September 2025, Fidelity’s profit after tax (PAT) reduced by 5.70 percent to N211.73 billion, as earnings were pressured by higher operating expenses and decline in none interest income.
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