FBN Holdings Spikes as Earnings Boost Investors Sentiment

FBN Holdings Spikes as Earnings Boost Investors Sentiment

FBN Holdings Plc is tracking higher in terms of market value as investors demand for its shares increased. The price uptick was driven by improved sentiment after the group posted impressive earnings results in 2024.

During early trading hours in the local bourse, its share price has already surged by about 7% on the day, with more than 88 million shares traded at N2.6 billion. Ticker: FBNH reached N31.3 in the equities market before trading session for Wednesday close, up by 6.83% from N29.3 at the beginning of the day.

FBN Holdings Plc reported a 2.4x year-on-year increase in profit after tax (PAT) to N736.7 billion in its unaudited financial statement for 2024. Notably, NII accounted for 62.2% of operating income, while non-interest income (NIR) lagged in comparison despite achieving 43.3% growth, CardinalStone Limited said in a note.

Analysts noted that the group experienced a significant increase in interest income from loans and advances to customers, which rose by 123.7% as effective repricing of its risk assets bolstered asset yields.

Additionally, given the elevated fixed-income yields, FBNH increased its exposure to Nigerian Treasury bills (NTB) to N2.1 trillion, which aided in driving the 3.1x increase in interest income from investment securities.

Also, the group non-interest revenue benefitted from material foreign exchange revaluation gains of N33.8 billion as against loss of N342.8 in 2023 and a 27.9% growth in net fee and commission income. Due to asset quality risks, FBNH booked higher provisions of N410.8 billion in 2024 amidst a 42.2% expansion in gross loans. Senate Promises Adequate Funding for Fiscal Responsibility Commission