Breaking News: First Bank of Nigeria Plc. has recorded a significant gain in the Nigerian stock market after its shares price increased by 31.8%.
The huge gain followed the announcement on September 7, 2024 that the bank has sold all of its stake in one of its subsidiary, FBNQuest Merchant Bank to EverQuest.
This major divestment by First Bank Plc. came on the trail of a strong performance in Q1 2024 during which the bank recorded a 132% increase in its pre-tax profit compared with Q1 2023.
9am News Nigeria reports that First Bank’s decision to divest from FBNQuest Merchant Bank is driven by its focus on core operations and reducing costs. This move delighted investors, sparking a scramble for shares and boosting its stock price.
Further information
- The new N500 billion recapitalization policy by the CBN led to First Bank’s shares dropping to N20.9 per share, signifying a 32% drop.
- The release of First Bank’s First Half financial report showing a 132% year-on-year rise in profit stoked and renewed the interest of investors leading to a rapid recovery of its stock value.
- The Bank’s interest income also rose by 155% to N947 billion in H1 2024 compared with its N371 billion interest income recorded in the first half of 2023.
- Last week First Bank’s announced its decision to sell FBNQuest Merchant Bank, a move that greatly impressed investors causing a skyrocketing of its share value.
First Bank is currently selling an average of 205 million shares monthly at current price of N29 per share.
First Bank of Nigeria Holdings (First Bank’s parent company) has also seen the value of its common shares double from N5.19 to N10.11 per share.
9am News Nigeria observed that First Bank is the first among the top tier banks to have its shares appreciate so rapidly since the recapitalization policy (which led to a general decline in the shares value of banks) was imposed on banks by the CBN.
