Investors Rush to Buy First Holdco as Stock Becomes Best-Performing

• Due to First Holdco Plc's exceptional financial results and projected fundraising, investors are still vying for shares
• The stock is currently the second most traded on the NGX over the past three months and the best-performing tier-one bank stock of the year
• From N28.05 at the end of 2024 to N33 at the start of 2025, the stock price has increased 17.65% year-to-date as of February 7, 2025

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

First Holdco Plc's outstanding financial performance and anticipated fundraising have kept investors clamoring for shares.

The Guardian reported that the stock is now the best-performing tier-one bank stock of the year and the second most traded on the Nigerian Exchange during the last three months.

Having outperformed several blue-chip stocks in year-to-date (YTD) returns, First Holdco has solidified its position in the capital market with a 142% increase in profit before tax to N862 billion and gross earnings, topping N3.33 trillion in 2024.

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As of February 7, 2025, the stock price has risen 17.65% year-to-date, from N28.05 at the end of 2024 to N33 at the beginning of 2025.

Solid investor enthusiasm, supported by the bank's solid financial performance, is reflected in the upward trajectory.

For example, the bank's nine-month financial report as of September 30, 2024, showed a 128 percent increase in profit before tax to N610.9 billion and a 134% YoY growth in total earnings to N2.25 trillion (from N962.4 billion in 2023).

By the end of 2024, gross earnings had increased by 113% to N3.33 trillion, while profit before taxes had risen 142% to N862 billion. Strategic leadership changes, namely the appointment of billionaire Femi Otedola as chairman in January 2024, have also increased investor trust.

Investor confidence was further reinforced when First Holdco's market capitalization skyrocketed to N1.22 trillion by February 2024 under his direction. Analysts still rank First Holdco as a good stock due to its solid financials, growing interest, and strategic leadership.

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Although there may be risks associated with market swings, the company's current momentum points to a bright future for investors. Patrick Ajudua, president of the New Dimension Shareholders Association of Nigeria, stated that the company's solid financial foundation and consistent market performance make it one of the top banking stocks to purchase.

He claimed that First Holdco's increase in net interest income is evidence of the bank's tenacity and capacity to handle financial difficulties while providing steady value in a cutthroat and changing financial sector.

He noted that the bank has remained committed to its goal of providing value to stakeholders, which he credits to Otedola's leadership.

“With its proven track record, strong earnings performance, and strategic leadership, investors and shareholders remain confident in First Holdco’s ability to maintain its position as a market leader,” he said.

As one of the most valuable banking equities on the Nigerian Exchange, Ajudua continued, the stock is still a top target for investors.

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First Holdco is still a crucial stock to keep an eye on as the Nigerian stock market continues to adapt to economic changes and changing investor sentiment. The stock seems well-positioned for future gains given its robust earnings growth, leadership change, and rising market capitalization.

First Bank announces new name

Legit.ng reported that FBN Holdings Plc has been renamed First HoldCo Plc (FirstHoldCo) as part of plans to create a uniform identity across all its subsidiaries.

The leading Nigerian financial company announced the change in its name in a statement released on Tuesday, February 11, 2025.

The rebranding was intended to highlight FirstHoldCo’s commitment to innovation, customer focus, and operational excellence.

Source: Legit.ng