FBNHoldings Plc, the parent company of First Bank of Nigeria Limited, saw remarkable growth in the first nine months of 2024, with earnings per share (EPS) and profits up by 125 percent year-on-year (Y/Y). The bank’s profitability is not solely driven by transaction charges, but rather by a significant increase in financial intermediation, as evidenced by a 165 percent year-on-year surge in interest income, reaching 1.63 trillion Naira.

This impressive growth is part of a consistent upward trend in the bank’s financial performance since the post-2015 crisis era, dubbed the ‘decade of miracle’ in the investment market.

From 2019 to 2023, First Bank’s EPS grew more than fourfold, from 195 to 859 kobo, making it one of the fastest-growing stocks in Nigeria’s capital market. During this period, its operating profit soared by over 320 percent, from 73.8 billion Naira to 310.5 billion Naira.

The bank’s total earnings nearly tripled, rising from 623 billion Naira to 1.6 trillion Naira in just five years, while its total assets expanded by 10.7 trillion Naira to 16.94 trillion Naira. Shareholder equity also saw substantial growth, climbing by 163 percent to 1.75 trillion Naira.

One of the key drivers behind the bank’s success has been its aggressive lending strategy, with loans to customers rising by 243 percent to 6.36 trillion Naira as of December 2023. These loans are spread across diverse sectors such as oil and gas, manufacturing, agriculture, construction, and real estate. Despite the challenges of the previous years, 2024 has shown even more resilience, with nine-month earnings for the year surpassing the entire 2023 figure by 655 billion Naira, or 134 percent, and pointing to an annualized gross of 2.8 trillion Naira.

The bank’s non-interest income also saw a remarkable 82 percent increase compared to the same period in 2023. A significant contributor to this growth has been FirstBank’s shift toward transaction-led banking, underpinned by an enhanced digital payment system.

As of September 2024, the bank’s FirstMobile subscribers had reached 6.9 million, with over 23 million users on various online platforms. This digital evolution has positioned FirstBank to leverage new technologies, including artificial intelligence, to improve its customer experience across both offline and digital channels.

Looking ahead, FirstBank’s new 10-year vision, articulated in 2023, aims to cement its place as one of the top three universal banks in Africa by 2033. CEO Olusegun Alebiosu, who has been instrumental in this vision, emphasized the importance of disciplined execution to ensure sustainable growth.

As part of this strategy, FBNHoldings raised 350 billion Naira in capital at its 12th AGM in November 2024, building on a previous 150 billion Naira rights issue. This will position the bank to meet the 500 billion Naira minimum capital requirements well ahead of the 2026 deadline.

While the bank has made impressive strides, it also faces significant challenges. The rise of digital-first competitors such as Opay and MoniePoint has placed pressure on traditional banks, including FirstBank. However, the bank’s digital evolution, which has seen over 90 percent of customer-induced transactions take place through its digital channels, positions it well to maintain a competitive edge in the rapidly changing financial landscape.

With the start of its 2025-2029 strategic planning cycle, FirstBank intends to double down on its market leadership, continuing to invest in improving customer experience and leveraging new technologies.

However, internal challenges, including a boardroom dispute with General Hydrocarbons Limited (GHL), threaten to distract from the bank’s growth trajectory. Stakeholders are seeking a swift resolution to ensure that the focus remains on consolidating the gains of the ‘decade of miracle’ and driving sustainable long-term success.

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