After Otedola Emerged Chairman, FBN Holdings Becomes Nigeria’s Biggest Lender by Market Cap

• FBN Holdings has recorded a significant milestone to become the most valuable bank in the country
• The company saw its market cap hit N1.2 trillion following a week of steady growth in its share price
• The development occurred after Otedola was appointed to chair the directors' board of FBN Holdings

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The parent company of First Bank, the oldest commercial bank in Nigeria, FBN Holdings, reached its highest valuation to date on Monday, February 26, 2024.

The achievement was documented following a week of steady growth that propelled the value of its shares above N1.2 trillion.

The financial services group now ranks higher than its peer, Guaranty Trust Holding Company, which had previously held the position for some time.

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FBN Holdings has benefitted from increased buy interest from equities investors since the beginning of February, helping to drive its share price progressively upward.

This comes after an almost two-fold spike in net profit for the previous year to about N310 billion.

PREMIUM TIMES reported that the entire volume of the company's shares traded on Monday alone was 197% more than the average daily traded volume over the previous 13 days.

According to an equity trader on the Nigerian Exchange, nothing really is propelling the stock, in reality.

He said:

"If you take away the Otedola factor, there isn't a big catalyst driving it."

Notably, Otedola, with holdings in the energy, cement, and financial services industries, was named chair of FBN Holdings' directors' board at the end of January.

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According to the lender's most recent unaudited report, he owns a 5.7% interest in the company, second only to Barbican Capital Limited, which has a 13.6% interest.

Otedola becomes 4th richest man in Nigeria

Legit.ng reported that Otedola has been ranked the 4th richest man in Nigeria amid bullish Nigerian stock performance.

According to the latest update of the Forbes Billionaire Index, Otedola has a net worth of $1.2 billion after making over $6 million on Thursday, January 11, 2024.

Otedola is now behind only Aliko Dangote, Mike Adenuga, and Abdulsamad Rabiu on the Forbes Billionaire list of richest men in Nigeria.

Source: Legit.ng