Event

FBN Holdings demonstrated a relatively strong financial performance in FY 2023 as asset repricing on loans & advances and off-balance sheet gains nudged gross earnings higher. Gross earnings and profit before tax grew by 96% and 127% to N1.59trn and N310.48bn respectively.

Q1 2024 Financial Performance

The Group reported an impressive financial performance according to their Q1 2024 results. Our findings revealed that gross earnings grew by 181% year-on-year. The strong performance was supported by a 153% year-on-year growth in interest income and a 245% jump in non-interest income.

Outlook

We expect the high-yield environment to remain over the near to medium term, owing to the stance of the monetary authorities. We believe that the Group’s earnings growth will be materially influenced by both interest income and other non-interest income components. After incorporating the Group’s Q1 2024 performance into our model, we project a N13.52 earnings per share (EPS) for FY 2024. Based on the revision, we now estimate a N28.74 fair value for the stock (previously: N22.72). At the current market price, the stock trades at 21% (exclusive of dividend yield) discount to our fair value. Therefore, we now recommend…

Please follow the link “FBNH Plc FY 2023 & Q1 2024 – Improved Performance Solidifies Future Prospect” to view the whole report.                                                                             

Thank you.