FirstHoldco Drops Sharply after Poor Earnings Performance
Non-operating company of First Bank of Nigeria Limited, First Holdco Plc, dropped about 8.8% of its market value as investors trimmed their holdings in post-earnings run-off.
The sharp price correction was triggered by signficant year on year decline in profitability performance, reducing bargain hunting in a stock with intrinsic volatility amidst a tough outlook in the banking sector.
First Holdco trading data obtained from the Nigerian Exchange showed that the financial services company’s share price declined to N41.05 as 27.6 million units valued at N1.133 billion were transacted on Monday.
The huge trading volume was driven by investors seeking to exit positions in reaction to 93% year on year decline in the group’s profitability as per its unaudited financial report submitted to the regulators.
In the last seven days, First Holdco has lost more than 16% of its market value after a year-end re-rating triggered by directors’ interest in the group’s shares.
At the current price, First Holdco is trading at about 26% to its highest value in the last 52 weeks, suggesting deep-rooted volatility.
The negative price movement has brought down First Holdco’s ranking among tier-1 lenders by market capitalisation, and some analysts think the financial company’s share price has not settled.
At the close of the trading session, First Holdco Plc’s 44.453 billion shares outstanding were valued at N1.824 trillion, a decline of 8.78% in the first trading days of February.
First Holdco Plc’s profit plunged 93.36% year-on-year to N44.982 billion in the financial year 2025, from N677.005 billion in 2024, due to weak asset quality. First Holdco Plunges by 10%, Free Float Shrinks, Otudeko Out
