The stock price of FBN Holdings (FBNH) Plc has appreciated by 17.65per cent in its Year-till-Date (YtD) return as of February 7, 2025, to emerge as top best tier-one bank stock on the Nigerian Exchange (NGX).
The oldest financial institution’s stock price currently outperformed its peers: Access Holdings Plc, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Ecobank Transnational Incorporated Plc (ETI) and Zenith Bank Plc listed on the bourse.
The stock price of FBN Holdings which closed 2024 at N28.05 per share, appreciated by 17.65 per cent to close February 07, 2025, at N33 per share. As FBN Holdings has gained N4.95 per share as of February 07, 2025, its market capitalization jumped to N1.18 trillion.
This was followed by Access Holdings which 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 has increased by 15.15 per cent YtD return to close at N39 per share as the stock price of Zenith Bank advanced by 14.29 per cent to close at N52.00 per share.
In addition, the stock price of GTCO moved from N57.00 per share when it closed in 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 it closed for trading 2024.
Investors increased buy interest in the stock of FBN Holdings traded on the Exchange, following solid unaudited full-year 2024 earnings results. 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 142per cent year-on-year (y-o-y) increase in Profit Before Tax (PBT) to N862 billion, while Gross Earnings surged by 113per 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 for the impairment charge of N411 billion, the PBT would have been N1.3 trillion.
The Group also recorded a higher average earnings yield of 16.71 per cent on the back of growth in loan volume and other earning assets for the year compared to 10.69per cent in 2023 despite the higher cost of funds (5.79per cent in 2024: 3.36per cent in 2023).
Convert PDF to MS Excel
Net interest margin (NIM) improved from 6.11 per cent in 2023 to 9.61 per 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 N2.79 trillion, closing at N9.4 trillion, while customer deposits rose by 62per 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 the 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 mobilization, supported by investments in digital banking capabilities, brand recognition, and the impact of naira depreciation on the translation of FCY-denominated deposits.
FBN Holding is confident that this performance will be sustained to improve its shareholder value in the future. The Group is committed to further enhancing revenue and profitability by strengthening our value proposition, refining our 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.
