FBN Holdings, Nigeria’s oldest bank, has emerged as the most capitalized bank in the country, surpassing Guaranty Trust Holding Company (GTCO).
The impressive surge in FBN Holdings’ share price led to the milestone, closing at N34 per share at the end of trading on Monday, February 25, 2024.
The bank’s stock opened the trading day at N31 per share, briefly dipping to N30 per share before rallying to close at N34 per share.
The accomplishment positions FBN Holdings as the leading bank in market capitalization and secures its place among the ten most capitalized stocks on the Nigerian Exchange Group (NGX).
The surge in FBN Holdings’ share price can be attributed to the announcement of billionaire investor Femi Otedola as a majority shareholder last year.
Since Otedola’s involvement, the stock has experienced a remarkable 230% increase, making it one of the best-performing banking stocks in the past year.
FBNH initially entered the prestigious SWOOT (Stocks Worth Over One Trillion) category in December 2023, when its share price reached N30 per share.
Although it experienced a temporary dip below a market capitalization of N900 billion two weeks ago, the stock has rebounded, securing its position as the most capitalized bank.
The bank’s resurgence aligns with recent achievements, including being named Euromoney’s Best Corporate Bank in Nigeria for 2023.
FBNH also unveiled its unaudited results for the fiscal year 2023, revealing a remarkable 127% increase in profits to N309.8 billion, marking the highest ever recorded by the bank.
Otedola’s significant impact on stock performance is evident in his strategic share acquisitions.
Experts say his involvement has propelled FBN Holdings’ rise to become the most capitalized bank in Nigeria.