FBNH Loses 6% Ahead of Audited Report Release
Nnamdi Okonkwo, Group Chief Executive, FBN Holdings

FBNH Loses 6% Ahead of Audited Report Release

This week, it is cheaper to own shares of FBN Holdings Plc after about a 6% price down of the group stock market valuation.  From the beginning of the year to date, FBNH has lost 2.34% as its shareholders sold off shares.

In 12-month, the financial services group has lost 9.91%, its stock market data show. The stock market bled further, supported by a 1.40% decline in the banking index triggered by profits taking in Tier I banks shares.

Rising yield in the fixed income market has supported equities investors that are riding on highs and lows waves to begin to offload amidst rising headline inflation and the need to hedge naira assets exposures.

FBNH’s audited report has been delayed as the group seeks to tidy up its figures in line with its operational performance.

Management told the Nigerian Exchange Limited and the investing public that an extraordinary meeting of the Board of Directors of FBN Holdings Plc would hold in Friday, April 14, 2023, to consider the Audited Financial Statements for the year ended December 31, 2022.

In the local bourse, Ticker: FBNH share price plunged by 5.86% as equities investors in the financial services group sold off part of their holdings amidst waning sentiments.

Data from the local exchange showed the group valuation has declined below #400 billion – a feat achieved after billionaire Femi Otedola’s strategic investment in 2022.

Its 35 billion outstanding shares were priced at #12.40 on May 31 2022. Investors could pick up enough shares at #10.45 ahead of the earnings release. According to analysts, FBNH is less volatile with my manageable up or downside despite a large free float in the local exchange.

Equities market valuation appears to be on the decline for weeks due to Weak sentiment in the local bourse. On Friday, FBNH worth N375 billion on the Nigerian Exchange, down from more than #440 billion it had printed last year.

The group posted about #40 billion pretax profit in the third quarter of 2022 after balance sheet cleaning efforts. Earnings spike strongly but a slew of equity analysts expressed the view that sustaining that performance level may be a Herculean task for the lender in 2023.

FBNH is not really money spinning machine for equities investors without power to influence the group’s business activities. With more than 35 billion outstanding shares trading, strategic investors seeking to control the financial services operation would need to push more than #20 billion to acquire 5% of FBNH as Femi Otedola did.

The total revenue of FBNH for the last quarter settled at N165.76 billion, it’s 7.21% lower compared to the previous quarter. # FBNH Loses 6% Ahead of Audited Report Release

Nigeria’s Inflation Rate Accelerates to 22.04%

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