FBN Holdings (FBNH) Plc has emerged as the best-performing tier-one banking stock on the Nigerian Exchange (NGX) as posted a 17.65% year-to-date (YTD) gain as of February 7, 2025.
The stock’s strong performance reflects renewed investor confidence in the financial institution, driven by solid earnings growth and strategic market positioning.
The oldest financial institution in Nigeria has outperformed its peers, including Access Holdings Plc, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Ecobank Transnational Incorporated (ETI) and Zenith Bank Plc, to lead the pack on the bourse.
FBN Holdings’ share price has gained N4.95 or 17.65 percent from N28.05 per share recorded in December 2024 to N33 per share.
This has put the company’s market capitalization at N1.18 trillion. This was followed by Access Holdings with a 17.4% YTD gain to settle at N28 per share.
UBA’s stock has appreciated 15.15% YTD to close at N39 per share, while Zenith Bank’s stock rose 14.29% to N52 per share.
Similarly, GTCO and ETI stocks have posted gains of 12.29% and 11.8% YTD, respectively.
Strong Earnings Fuel Market Confidence
The bullish momentum surrounding FBN Holdings’ stock is largely attributed to its impressive unaudited full-year 2024 financial results, which have reinforced investor confidence in the group’s ability to deliver strong returns.
FBN Holdings reported a 142% year-on-year (YoY) increase in Profit Before Tax (PBT) to N862 billion while Gross Earnings surged 113% YoY to N3.33 trillion. The group also recorded a higher average earnings yield of 16.71%, up from 10.69% in 2023 despite a higher cost of funds at 5.79%, compared to 3.36% in the previous year.
The unaudited financial report revealed growth in key performance indicators.
Positioning for Sustainable Growth
FBN Holdings’ performance was driven by strong net interest income, a higher net interest margin (NIM) of 9.61% (up from 6.11% in 2023) and robust non-interest income growth, particularly from fee and commission income.
From a balance sheet perspective, the group’s total assets grew to N26.54 trillion in 2024, up from N16.94 trillion in 2023. Loans to customers surged by N2.79 trillion to close at N9.4 trillion while customer deposits rose 62% to N17.29 trillion.
The group’s deposit mobilization strategy has helped strengthen its liquidity position.
The 42% growth in loans and advances reflects both new customer loans and the impact of naira depreciation on foreign currency-denominated assets.
Market Outlook: Sustaining the Momentum
Investors remain optimistic that FBN Holdings will sustain its strong performance, leveraging its governance reforms, operational efficiencies, and market expansion strategies to drive future growth.
The group has reaffirmed its commitment to enhancing shareholder value, strengthening its risk management framework, and positioning itself for sustained profitability.
With the continued implementation of the Central Bank of Nigeria’s (CBN) monetary policies, analysts expect tier-one banks, including FBN Holdings, to maintain positive growth trajectories in 2025.
The group’s ability to capitalize on market trends and strengthen its revenue streams is expected to keep investors bullish on its stock.
As FBN Holdings continues to deliver impressive financial results and strategic growth, the stock’s upward momentum signals renewed investor confidence in its long-term prospects.
