First Bank

The race to the top has commenced as FBN Holdings reached a market capitalization of N600 billion, driven by the increasing popularity of financial stocks and the anticipation of improved regulation within the banking sector.

Dubbed the “Otedola effect,” it is evident that the group’s overall value has experienced a positive adjustment since the recent boardroom activities, which allowed Femi Otedola to obtain a significant stake in the company.

The share price of the financial group has recently surged, anticipating favorable second-quarter financial results for the year 2023.

Although the audited report indicated a decline in earnings for the financial service group, there were promising signs of early recovery with solid year-on-year growth in the first quarter.

The audited report for 2022 revealed that the group’s earnings reached N805.13 billion, up from N757.3 billion during the same period in 2021. However, annual profit declined to N136.17 billion compared to N151.08 billion in 2021.

The group’s financials also disclosed that Femi Otedola, the largest shareholder of FBNH, sold his direct interest in the company. Nevertheless, he continues to maintain his position as the top shareholder in terms of overall shares.

Data from the local stock exchange showed that on Thursday, FBNH experienced a 4.38% increase, closing at N16.70 per share. Consequently, the market capitalization soared to N599.50 billion, double its value prior to Otedola’s significant share acquisition.

According to market data obtained from the Nigerian Exchange, a total of 11,466,206 million shares of FBN Holdings were traded on the exchange floor, with a total value of N191.486 million.


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