FBN Holdings Emerges Best Performing Tier-One Bank

The stock price of First Bank of Nigeria (FBN) Holdings Plc has appreciated by 17.65per cent in its Year-till-Date (YtD) return as of February 07, 2025 to emerged as  best tier-one bank stock on the Nigerian Exchange (NGX).

The oldest financial institution stock price currently outperformed its peers listed on the bourse: Access Holdings Plc, Guaranty Trust Holding Company (GTCO), United Bank for Africia (UBA), Ecobank Transnational Incorporated Plc (ETI) and Zenith Bank Plc.

The stock price of FBN Holdings that closed 2024 at N28.05 per share, appreciated by 17.65 per cent to close February 07, 2025 at N33.00 per share. FBN Holdings gained N4.95 per share as of February 07, 2025, and its market capitalisation jumped to N1.18 trillion.

FBN Holdings was followed by Access Holdings that gained 17.4 per cent YtD from N23.85 per share to close February 07 at N28 per share. In the period under review, the stock of UBA increased by 15.15 per cent YtD return to close at N39per share. The stock price of Zenith Bank advanced by 14.29 per cent to close at N52.00 per share.

The stock price of GTCO moved from N57.00 per snare when it closed 2024 to N64 per share, about 12.29 per cent YtD gain, while ETI’s stock appreciated by 11.8 per cent to close February 07, 2025 at N31.00 per share from N28.00 per share in 2024.

Investors increased their interest in the stock of FBN Holdings traded on the Exchange following a solid unaudited full year 2024 earnings result.

The Holdings solidified its position as a leading financial institution in Nigeria, delivering an impressive result for the year ended December 31, 2024.

As reflected in its unaudited Group Financial Statements, FBN Holdings recorded a 142 per cent year-on-year (y-o-y) increase in Profit Before Tax (PBT) to N862 billion, while Gross Earnings surged by 113 per cent y-o-y to N3.33 trillion.

The outstanding financial results showcase significant growth across multiple key metrics. The strong growth recorded on net interest income is a testament to FBN Holdings’s resilience and ability to deliver value in a competitive and evolving market landscape. It is noteworthy that but for the impairment charge of N411billion, the PBT would have been N1.3trillion.

The Group also recorded a higher average earnings yield of 16.71per cent on the back of growth in loan volume and other earning assets for the year, compared to 10.69 per cent in 2023 despite the higher cost of funds (5.79 per cent in 2024: 3.36 per cent in 2023).

Net interest margin (NIM) improved from 6.11per cent in 2023 to 9.61per cent in 2024. The high-rate environment is reflective of the hike in the CBN Monetary Policy Rate (MPR) over the period from 18.75 per cent as of December 2023 to 27.25 per cent in December 2024.

The non-interest income growth was driven by growth in fee and commission income and key to this were income on fund transfer, intermediation and fees on digital channels which recorded impressive transaction volumes during the year.

From the balance sheet position, the group’s total assets increased to N26.54 trillion in 2024, up from N16.94 trillion reported in 2023.

Loans to customers increased significantly by N2.797 trillion, closing at N9.4 trillion, while customer deposits rose by 62 per cent to N17.29 trillion.

The 42 per cent growth in loans and advances to customers is attributable to new loans to customers from the Commercial Banking Group and impact of naira depreciation on FCY denominated loans and advances.

The Group has continued to maintain its strong risk management stance, ensuring the resilience of its business, especially in the volatile business environment.

Deposit liabilities grew by 62 per cent from the Commercial Banking Group on account of continuous deposit mobilisation, supported by investments in digital banking capabilities, brand recognition, and impact of naira depreciation on translation of FCY denominated deposits.

FBN Holding is confident that this performance will be sustained to improve its shareholder value into the future. The Group is committed to further enhancing revenue and profitability by strengthening value proposition, refining its governance model, and maximizing operational efficiencies.

In the face of the increasingly competitive environment, the Group maintains a forward-looking approach, with a clear aim of building a sustainable institution and surpassing stakeholders’ expectations.

The investing public still awaits the full year 2024 result and accounts of Access Holdings, GTCO, UBA, ETI and Zenith Bank.