Femi Otedola, Other First Bank Investors Lose Over 7% Of Investment
Femi Otedola, Other First Bank Investors Lose Over 7% Of Investment

Femi Otedola, Other First Bank Investors Lose Over 7% Of Investment

2 years ago
1 min read

The capital market investors have lost 7 per cent investments in First Bank of Nigeria Holdings. This is despite FBN Holdings finances experiencing a boost.

Net  profit of FBN Holdings grew by 48.6% in H1 2022, outperforming two corresponding periods in 2021, when the lender recorded 6.8% growth in profit after tax, and 2020, which closed with 23.8% rise.

Prime Business Africa analysis of FBN Holdings activity in the Nigerian stock exchange shows regardless of what the net profit is saying, the capital market investors are not confident enough to keep their money in First Bank stock, resulting to a bearish sentiment that has devalued FBN’s stock, with shareholders selling it for as low as N10.75kobo per share, despite the equity valued at N11.60kobo at the start of the year.

This has caused other investors holding FBN shares, including Femi Otedola, to lose at least -7.32% of their money invested in First Bank, wiping off N30.51 billion from shareholders investment within eight months.

As a result, First Bank market valuation has dropped to N385.87 billion as at August 22, from N416.38 billion the commercial bank was valued in January.

Recall that during this period, FBN Holdings highest shareholder, Femi Otedola, had also sold over 700 million shares in H1 2022, to take out N5.76 billion. This reduced his investment in First Bank from 7.56% to 5.24%.

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