FBNH Valuation Hits N500bn as Market Awaits Audited Report
Nnamdi Okonkwo, GMD, FBNH Plc

FBNH Valuation Hits N500bn as Market Awaits Audited Report

FBN Holdings Plc has inched near N500 billion in market valuation as the market anticipates the release of its 2022 audited report.  In a statement, the financial services group announced a plan to release its audited statement in May 2023.

Tracking the growth of the group, MarketForces Africa reported that beyond earnings performance, positive sentiment on FBNH has triggered an upward market valuation.

In 2021, FBNH Plc raised its earnings bar as it doubled down on earnings performance amidst debt recovery. The group’s 3-year balance sheet repairing efforts pushed its profitability to an all-time high in the year.

However, market analysts told MarketForces Africa that the sustainability of the group’s improved performance will be tested in the financial year 2022.

FBNH has failed to meet the deadline but management said earlier in the month that the audited report for 2022 and first quarter earnings will be released concurrently late in the month.

On Friday, FBNH’s stock market valuation surged above N497 billion, trading at N13.83 per share. This effectively pushed the group valuation in the local bourse above Access and UBA Plc.

Access Holdings is worth N405.215 billion while UBA Plc’s market valuation is N318.54 billion as of Friday’s close, according to data from the Nigerian Exchange. >> FBNH on Gaining Streaks Amidst Earnings Delay

At N845 billion, Zenith maintains the lead in terms of earnings, and valuation in the tier-1 category, followed closely by GTCO valued at N809 billion at the same time.

FBNH share maintained an uptrend trajectory even without slight detail of any public information driving such momentum. 

Market analysts see this as a fine re-rating if its impressive earnings performance in 2022 could be sustained. FBNH has to prove it has left the ‘chilling stock’ class to join the big league.

The increased market valuation is on nothing but sentiment. What’s fueling investors’ sentiment isn’t clear despite the fact that FBN Holdings has not produced its audited statement for 2022, and its quarterly result is also missing.

The elephant is dancing smoothly and when it crossed N500 billion in market valuation, it would have raised its year-to-date return to 30% – and that’s impressive for value hunting investors.

In 2021, FBNH achieved a 99.1% jump in pre-tax profits to N166.7 billion, aided by the recovery of bad debt loans from its customers during the period.

Equity analysts told MarketForces Africa that a pre-tax profit of N166.7 billion achieved is a new earnings record for the group operation that must be maintained going forward.

Recall the management had embarked on a balance sheet cleaning programme that has set the group on the path of recovering its brand identity among competing brands and increased rivalry with peers.

A total sum of N141 billion was recovered, according to the audited statement which included bad debt of Atlantic Energy which had been written off due to a low probability of recovery after the client defaulted.

Overall, FBNH Plc’s profit after tax for 2021 surged 68.4% to N151.1 billion. #FBNH Valuation Hits N500bn as Market Awaits Audited Report >>>Nestlé Nigeria to Pay N36.50 Dividend on Each Share