FCMB Market Value Rises to N91bn as Insiders Acquire 13.777m Shares

FCMB Market Value Rises to N91bn as Insiders Acquire 13.777m Shares

Diversified financial service group, FCMB Plc, has seen its market valuation making an uptrend amidst a surge in demand for shares following the earnings release.

Buying interest in the counter was supported by large share purchases by its insiders. In May, six insiders in the diversified financial services group acquired 13,777 million shares at N4.

These insiders added more shares to their portfolio after the completion of the annual shareholders meeting in April where a final dividend of 25 kobo was approved.

As of Friday’s close, FCMB share traded at N4.6 kobo, up by 9.5% in the week from N4.2 kobo

Data from the Nigerian Exchange shows the group’s market valuation crossed N91 billion on Friday as equities investors re-rate banking stocks.

With the buying momentum, FCMB Plc’s year-to-date return jumped to 31% following a 15% monthly gain that followed the group’s earnings release.

The review of director dealing disclosure showed that Primrose Investment acquired 2,750,000 shares while another director Femi Badeju bought 2,500,000 units.

Gbolahan Joshua bought 2,127, 379 shares on the same day, the same time when FCMB Chief Executive Officer Yemi Edun made payments for 3,000,000 shares of the bank she leads.

Obaro Odeghe also acquired 2,000,000 shares of FCMB at N4 on the same day. The weekly gain pushed year to date gain to about 16%.

The company secretary, Funmi Adedibu, bought 1 million shares at N4 the same day.

At the close of the trading session on Friday, investors in the Nigerian Exchange valued FCMB Plc at N91.092 billion on its 19.802 billion shares outstanding.

The group has recently boosted its capital position with N20 billion raised at 16% in the local debt capital market. Equities investors trading highs and lows have picked interest in purple branded financial services group shares.

This positive sentiment continues to support an upward adjustment to its market valuation in the recent time.  After the early boom in 2023, the local bourse gave up gains that resulted in price actions – FCMB fell to N70 billion.

With the additional Tier 1 capital raised in March, analysts guide that FCMB is positioned to drive earnings growth in 2023.

In its 2022 audited financial statement, FCMB delivered healthy earnings performance as the group doubled down on its profit.

The group’s pretax profit jumped to N37.11 billion in the financial year 2023, from about N23 billion reported in the comparable period in 2021.

FCMB Group’s gross earnings spiked following an increase in lending appetite to reduce the Central Bank’s persistent cash reserves debit for failure to meet its 65% loans to deposit target.

The group declared a 25 kobo dividend per share for its shareholders which it announced Friday, 28 April 2023 as the payment date. 

In 2022, the bank’s pretax profit inched higher by about 56% year on year to N32.91 billion from N20.916 billion in the corresponding year in 2022 despite higher tax payment obligations in the period.

A well-diversified financial service group’s profit for the year printed above N32.59 billion, up 55.82% from N20.916 billion reported in the comparable period in 2021.

FCMB Group Plc operates as a holding company, which engages in the provision of banking and financial services to its corporate and individual customers. #FCMB Market Value Rises to N91bn as Insiders Acquire 13.777m Shares

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ogochi Ndubuisi is creative content manager with interest in marketing and advertisement. Ogochi supports MarketForces Africa's clients corporate communication units with content development and liaise with media unit for disseminable product information.