The share price of FBN Holdings one of Nigeria’s oldest banks crossed the N1 trillion market capitalization on Wednesday.
This is after back-to-back gains of about 10% sent the share price soaring this week. By hitting the N1 trillion market cap.
FBN Holdings, one of Nigeria’s oldest banks, achieves a remarkable milestone as its share price crosses the N1 trillion market capitalization threshold after consecutive weekly gains of around 10%. The surge propels FBNH into the prestigious league of “SWOOTs” (Stocks Worth Over One Trillion Market Capitalization), alongside prominent entities like Dangote Cement, Airtel Africa, MTN, BUA Cement, BUA Foods, Seplat, Zenith Bank, and GTCO.
The ascent began in 2022 when billionaire investor Femi Otedola announced his majority holding in the bank, triggering a fervor among investors. Starting at under N6 per share, FBNH has surged fourfold since Otedola’s acquisition announcement. Known for enhancing market perception and valuations with his acquisitions, Otedola previously influenced the share prices of Forte Oil and Transcorp.
The financial performance reflects FBNHoldings’ robust growth, with profit before tax soaring by 156.3% to N270.3 billion from N105.5 billion in 2022. This remarkable performance is attributed to strong growth in interest income, contributing to a net interest income of N377.0 billion, a 51.4% year-on-year increase. Non-interest income also rose by 108% to N326.9 billion.
Operating expenses increased by 33.3% year-on-year, standing at N352.3 billion. FBNHoldings’ Group Managing Director, Nnamdi Okonkwo, emphasized the commitment to leveraging technology and brand strength to enhance value proposition, increase revenues, and improve overall operational efficiency.
Dr Adesola Adeduntan, CEO of First Bank of Nigeria Limited (Commercial Banking Group), highlighted the impressive financial results for the nine months ending September 30, 2023. Gross earnings reached N922.2 billion, a notable 79.8% year-on-year increase. The bank’s commitment to effective interest rate management, diversification of revenue streams, and value-added services to customers contributed to significant growth in net interest income and non-interest income.
Growth percentages of 157.9% and 158.2% year-on-year in Profit Before Tax and Profit After Tax, respectively, underscore FirstBank Group’s commitment to delivering exceptional value and sustaining an impressive growth trajectory in the face of dynamic market conditions.
Looking ahead, we are committed to sustaining this momentum, exploring new growth opportunities through innovation, and upholding our core value of customer centricity”.