First Holdco Plc’s outstanding financial performance and anticipated fundraising have kept investors clamoring for shares. Over the last three months, the stock has become the second most traded on the Nigerian Exchange (NGX), and it has performed the best among tier-one bank stocks so far this year.
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.
The stock price increased 17.65% year-to-date as of February 7, 2025, from N28.05 at the end of 2024 to N33 at the beginning of 2025.
The upward trend is a reflection of the positive feeling of investors, which is supported by the bank’s outstanding financial results.
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.
Under his direction, investor confidence was further reinforced when First Holdco’s market capitalization skyrocketed to N1.22 trillion by February 2024. Analysts still rank First Holdco as a good stock due to its solid financials, growing interest, and strategic leadership.
Although risks may be 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 claims 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 said the bank has remained committed to delivering value to stakeholders, which he credits to Otedola’s leadership.
“Investors and shareholders continue to have faith in First Holdco’s ability to sustain its position as a market leader due to its demonstrated track record, robust earnings performance, and strategic leadership,” he stated.
As one of the most valuable banking equities on the Nigerian Exchange, Ajudua continued, the stock is still a top target for investors.
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. Given its robust earnings growth, leadership change, and rising market capitalization, the stock seems well-positioned for future gains.
