FBN Holdings is now one of the ten (10) most valuable brands on the Nigerian Exchange, and some analysts are discussing the possibility of increasing dividend pay for 2021.
Year to date, the Holdings share price has jumped big, rising to N12 from 6.90 on April 30 after its leadership tussle. It wasn’t so from the beginning until recent time that you see Tier-1 lender’s player share price trading at above N10. The bank’s share price gained 3.9% to consolidate its newfound valuation just last week.
Also, in the last 1-month, the share price has jumped about 9% as the financial services supermarket now command about N440 billion in valuation on the local bourse.
That’s more than a 67% surge in 11-month – a big re-rating seen after the demand for bank shares skyrocketed. There is so much to like about FBN Holdings in recent times.
The largest subsidiary in the group, First Bank of Nigeria Limited had embarked on balance sheet cleaning that worked like magic.
It started by offloading its legacy assets, thus reducing the non-performing loan ratio. A cleaner balance sheet paved the way for improved profitability after the impairment charge against the income statement moderated significantly.
In sum, the elephant gets its grooves back. Then, the board room game that has been played for donkey years boomerang. Surprisingly, the brand maintains calm as the regulator helps with the cleanup.
In April 30, the bank share price was N6.90. FBNH valuation had been hovering below N250 billion for a longer time. And Geregu group Chairman Femi Otedola made a strategic incursion after the Oba Otudeko exit as an influential board member.
What Broadstreet analysts call ‘Otedola’ effects bear on the stock price and valuation witnessed a meteoric rise in a few months of buying interest. In the last six months, FBNH share price has jumped more than 65%.
The majority of its capital appreciation became feasible actually in the last three months. Market data shows that FBNH share price has increased 60% in 90-day. Dividend expectation has increased as price jumps. #FBNH: Near 70% Share Price Jump Stokes Higher Dividend Expectation.
