With 17.65% YtD  increase, FBN Holdings leads GTCO, others as best performing stock on NGX

FBN Holdings (FBNH) Plc’s stock price appreciated by 17.65per cent in its Year-till-Date (YtD) performance as of February 07, 2025 to emerge as  top best tier-one bank stock on the Nigerian Exchange (NGX).

An investigation by WESTERN POST showed that the Holdings stock price currently outperformed its peers:, Guaranty Trust Holding Company (GTCO), Access Holdings Plc, United Bank for Africa (UBA), Ecobank Transnational Incorporated Plc (ETI) and Zenith Bank Plc. 

How these Tier-1 banks perform YtD

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.  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 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 has increased by 15.15 per cent YtD return to close at N39per 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 snare when iti 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 it closed for trading 2024. 

FBN Holdings 2024FY unaudited result and accounts

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 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 10.69per cent in 2023 despite the higher cost of funds (5.79per cent in 2024: 3.36per 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 18.75per cent as at December 2023 to 27.25per cent at 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 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 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 62per cent from the Commercial Banking Group on account of continuous deposit mobilization, 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 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.