November 19, (THEWILL) – FBN Holdings Plc, the parent company of First Bank of Nigeria Limited, has consolidated on the growth trajectory that it launched onto early in 2023, when it first recorded a N50 billion post-tax profit in the first quarter to reverse the 2022 profit drop.
The group achieved impressive numbers in the nine months of the year, incorporating the third quarter for the period ending September 2023, according to the interim report filed with the Nigerian Exchange (NGX).
The financial services behemoth had declared N206.3 billion pre-tax profit in its unaudited half year (H1) account ended June 30, 2023, which was a new record high for Nigeria’s oldest financial services institution.
The group posted a pre-tax profit of N64.1 billion in Q3 2023, representing an increase of 61.11 percent year-on-year from the corresponding quarter in 2022.
The figure in Q3 2023 pushed the group’s pre-tax profit in the nine months ending September 30, 2023, to N270.33 billion, a year-on-year increase of 156.26 percent from the figure recorded in the corresponding period in 2022.
For the third quarter, the company reported net interest income of N141.35 billion, compared to N96.73 billion a year ago. Net income was N48.40 billion, compared to N34.04 billion a year ago.
For the nine months, the net interest income was N383.09 billion, compared to N252.53 billion about a year ago, while the net income was N234.72 billion compared to N90.08 billion a year ago.
Basic earnings per share from continuing operations was N6.54, compared to N2.51 a year ago.
FBNH stock value has experienced a growth surge since the year, especially as its peer, Union Bank of Nigeria, announced plans to delist from the Exchange.
FBNH stock closed its last trading day (Friday, November 17, 2023) at N20.00 per share on the NGX. The stock began the year with a share price of N10.90 and it has since gained 83.5 percent on that price valuation, ranking it 50th on the NGX in terms of year-to-date performance.
Analysts say the shareholders can be optimistic about FBNH knowing the stock has accrued 26 percent over the past four-week period alone—the 15th best on NGX.
FBN Holdings is the 11th most traded stock on the NGX over the past three months (Aug 21 – Nov 17, 2023). Findings showed that the stock has traded a total volume of 841 million shares—in 11,154 deals—valued at N15.5 billion over the period, with an average of 13.4 million traded shares per session.
A volume high of 210 million was achieved on November 8th, and a low of 648,788 on October 27th, for the same period.
FBN Holdings stock had witnessed the impact of mixed sentiments during the year leading to the slump to about N512 billion in market valuation as the group released its audited financial statement for 2022 and first quarter 2023 earnings results concurrently. A review of the group’s audited report revealed a significant decline in its single largest shareholder, Femi Otedola, direct interest.
The financial services group has seen its shares running ahead of the equities index despite seesaw movements in the local bourse, FBNH has been gathering momentum in the past months, suggesting a large order book has been filled due to a level of surge in its valuation.
Data from the stock market show that the stock slumped after FBNH’s board of directors announce the proposed dividend payment of 50 per share to shareholders, a more than 40 percent increase, compared with 35 kobo that was declared in the comparable year in 2021.
Analysts had said that positive sentiment on FBNH triggered an upward market valuation beyond earnings performance. The group had more than 87 percent of its outstanding shares available for trade in the stock market earlier in the year.
THEWILL had reported that FBNH largest single shareholder, Femi Otedola, offloaded more shares in the first quarter of 2023 as FBNH’s unaudited report showed total shareholding dropped. Detail from the first quarter result revealed that Otedola exited his position, and shareholding declined to 5.57 percent as of March 31, 2023.
Analysts had opined that there was a deliberate decision by the billionaire investor to reduce his direct holding to 10 million units from 210 million shares. Otedola also sold down indirect holdings, and another influential shareholder, Tunde Hassan-Odukale increased indirect shareholdings in the group.
Industry analysts had noted that the rally witnessed at the time which spurred the financial services company’s valuation above N500 billion could be traced to buying interest among the influential shareholders.
The shareholders of FBN Holdings (FBNH) Plc at the group’s annual general meeting in August approved a capital raise of N150 billion through rights issue..
Also, the shareholders approved the appointment of Otedola as a non-executive director of the group.
Speaking to shareholders, Group Chairman, FBN Holdings, Alhaji Ahmad Abdullahi, said the group continued to push through difficult and economically challenging times, working with the board and management teams across its subsidiaries to deliver strong topline revenues at year-end 2022.
He noted, “At FBNH, technology and innovation are at the core of what we do. We recognise the competitive advantage innovation affords us and ensure it takes the front seat in the design, development and enhancement of our products and services.
“We are intentional in our approach to disruptive innovation and explore new boundaries in our quest for market leadership. At the heart of our digital transformation journey is our Digital Innovation Lab, an innovation hub, which, in collaboration with the Strategic Business Units, reimagines, redesigns and delivers new products, as well as product upgrades that ensure we are agile and adaptable in our fast-paced business environment with ever-changing customer needs.”