In a remarkable feat, FBN Holdings, one of Nigeria’s oldest banks, has officially entered the prestigious N1 trillion market cap club, commonly known as SWOOTs (Stocks Worth Over One Trillion Market Capitalization). The milestone was achieved on Wednesday, following consecutive gains of approximately 10%, propelling the share price to unprecedented heights.
As of 10:34 am on Wednesday, FBN Holdings (FBNH) saw a surge of 9.91%, or N2.65, reaching a market capitalization of N1.056 trillion. This achievement places FBNH in the esteemed company of other SWOOT members, including industry giants like Dangote Cement, Airtel Africa, MTN, BUA Cement, BUA Foods, Seplat, and recent entrants Zenith Bank and GTCO.
The surge in FBN Holdings’ market performance can be traced back to developments in 2022 when billionaire investor Femi Otedola announced the acquisition of a majority holding in the bank. This announcement triggered a buying frenzy among investors, and since then, FBNH’s stock has soared, gaining fourfold from just under N6 per share at the time of Otedola’s announcement.
Femi Otedola’s association with companies often leads to improved market perception and higher valuations, as seen in previous instances with Forte Oil and Transcorp.
The financial performance of FBN Holdings has been robust, as evidenced by its third-quarter financial statements ending September 30, 2023. The Group reported a profit before tax of N270.3 billion, marking a significant increase of 156.3% from the previous year. Profit after tax (PAT) also saw a substantial rise, reaching N236.4 billion, a 159.2% YoY increase.
Key financial highlights from the nine-month period include a net interest income of N377.0 billion, up 51.4% YoY, and non-interest income at N326.9 billion, representing a 108% YoY growth. Operating expenses rose to N352.3 billion, up 33.3% YoY.
Nnamdi Okonkwo, the Group Managing Director, expressed satisfaction with the results, stating, “We remain committed to leveraging technology, automation, and our brand strength to enhance our value proposition, increase revenues, and improve the overall operational efficiency of the Group.”
Dr. Adesola Adeduntan, Chief Executive Officer of First Bank of Nigeria Limited (Commercial Banking Group), highlighted the bank’s commitment to sustained growth, agility, and customer-centricity, stating, “As we continue to face dynamic market conditions, our agility, risk management capabilities, and strategic approach will remain pivotal in sustaining this impressive growth trajectory.”
FBN Holdings’ entrance into the N1 trillion market cap club signifies a momentous achievement and underscores the bank’s resilience, strategic initiatives, and commitment to delivering value to shareholders and stakeholders.
