In a dramatic shift within Nigeria’s banking sector, FBN Holdings, the nation’s oldest bank, has ascended to the top as the most capitalized banking institution, surpassing GTCO.
At the close of trading on Monday, February 25th, 2024, FBN Holdings’ share price soared to N34 per share, securing its position as the largest bank in the country by market capitalization. The stock’s journey saw an impressive opening at N31 per share, briefly dipping to N30 per share before rallying to its closing peak, signaling a significant milestone for the banking giant.
FBN Holdings’ remarkable surge also saw it rejoining the prestigious SWOOT (Stocks Worth Over One Trillion) category and solidifying its position among the top 10 most capitalized stocks on the NGX.
This surge in FBN Holdings’ share price is largely attributed to the strategic investment of billionaire investor Femi Otedola, who assumed a majority shareholder role last year. Since Otedola’s involvement, the stock has witnessed an extraordinary increase of 230%, establishing itself as one of the top-performing banking stocks in recent memory.
Following its recognition by Euromoney as the Best Corporate Bank in Nigeria for 2023 and the release of its impressive unaudited fiscal year 2023 results, which showcased a staggering 127% profit surge to N309.8 billion, FBN Holdings has solidified its dominance in the market.
The influence of Femi Otedola within the banking sector cannot be understated. His strategic investments have consistently driven stock prices, exemplified by the surge in Transcorp Group and Dangote Cement, among others. Otedola’s recent appointment as Chairman of FBN Holdings further underscores his strategic vision and influence within the banking landscape.
In the wake of FBN Holdings’ ascent, GTCO now stands as the second most capitalized bank on the exchange, having recently surpassed Zenith Bank. With a market capitalization of N1.14 trillion, GTCO’s shares closed at N39.05 per share.
As the banking sector witnesses this seismic shift, stakeholders closely monitor the implications of FBN Holdings’ newfound dominance, anticipating further developments in Nigeria’s dynamic financial landscape.
Credit: Nairametrics
