Nigeria's First Bank posts 325% profit growth in first quarter
TLDR
- FBN Holdings Plc reports impressive Q1 2024 results: N238.5 billion pre-tax profit, up 325% from Q1 2023.
- Net income soars by 316% to N208.2 billion, driven by a substantial 153% rise in interest income.
- Despite growth, group faces net FX loss of N94.8 billion due to FX revaluation loss and FX trading income.
FBN Holdings Plc, one of Nigeria's biggest banking groups, has reported its unaudited financial results for Q1 2024, showing a pre-tax profit of N238.5 billion ($171.5 million), a 325% increase from N56.1 billion in Q1 2023.
The group's net income rose by 316% to N208.2 billion, up from N50.1 billion in the same period last year. This growth was driven by a 153% year-on-year increase in interest income, which reached N455 billion compared to N180 billion in Q1 2023.
Despite this growth, the NGX-listed group posted an FX revaluation loss of N108.2 billion, offset by an FX trading income of N13.4 billion, resulting in a net FX loss of N94.8 billion.
Key Takeaways
Despite impressive financial results, Nigerian banking stocks have experienced a sharp decline in the second quarter of 2024. This downturn has been exacerbated by the Central Bank of Nigeria’s recapitalization directive, prompting concerns over potential rights issues. The FUGAZ stocks—comprising major Nigerian banks like FBN Holdings, UBA, GTCO, Access Corporation, and Zenith Bank—have entered a bearish phase, with significant declines in share prices. Analysts attribute this trend to the anticipation of rights issues, where banks offer shares at prices below the current market rate to entice existing shareholders. This increase in the supply of shares typically puts downward pressure on share prices. The market's reaction reflects concerns about the potential dilution of share value and the impact of increased capital requirements on banks' financial health and profitability.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.