Investors have continued to scramble for shares of First Holdco Plc on account of the Group’s impressive financial performance and expected fundraising.
The stock has emerged as the second most traded on the Nigerian Exchange (NGX) over the past three months and the best-performing tier-one bank stock year-to-date.
With a 142 per cent jump in profit before tax to N862 billion and gross earnings, surpassing N3.33 trillion in 2024, First Holdco has cemented its foothold in the capital market, outperforming several blue-chip stocks in year-to-date (YTD) returns.
The stock price has surged from N28.05 at the end of 2024 to N33 by early 2025, translating to a 17.65 per cent increase YTD as of February 7, 2025.
The upward trajectory reflects strong investors’ sentiment fueled by the bank’s robust financial performance.
For instance, in its nine-month earnings report as of September 30, 2024, the bank recorded a 134 per cent YoY increase in gross earnings to N2.25 trillion (from N962.4 billion in 2023) and a 128 per cent rise in profit before tax to N610.9 billion.
By year-end 2024, profit before tax surged 142 per cent to N862 billion, with gross earnings up by 113 per cent to N3.33 trillion.
Investors’ confidence has also been bolstered by strategic leadership changes, particularly the appointment of billionaire businessman Femi Otedola as chairman in January 2024.
Under his leadership, First Holdco’s market capitalisation soared to N1.22 trillion by February 2024, further strengthening investors’ sentiment.
With strong financials, increasing interest, and strategic leadership, analysts continue to rate First Holdco as a choice stock.
While market fluctuations may pose risks, the company’s current momentum suggests a promising outlook for investors.
President of the New Dimension Shareholders Association of Nigeria, Patrick Ajudua, said the financial institution remains one of the best banking stocks to invest in due to its strong financial fundamentals and steady market performance.
According to him, First Holdco’s growth in net interest income is a testament to the bank’s resilience and ability to navigate economic challenges while delivering consistent value in a competitive and evolving financial market.
He pointed out that the bank has remained steadfast in its mission to deliver value to stakeholders, a strength he attributes to the leadership of Otedola.
“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.
Ajudua added that the stock remains a prime target for investors, reinforcing its status as one of the most valuable banking stocks on the Nigerian Exchange.
As the Nigerian stock market continues to adjust to economic reforms and shifting investor sentiment, First Holdco remains a key stock to watch. With its strong earnings growth, leadership shake-up, and increasing market capitalisation, the stock appears well-positioned for further gains.
