WHEN FirstBank revealed fantastic results, it gave investors a nice surprise, showing that its turnaround plan based on innovation, resilience, and digging deep is succeeding.
Massive loan recoveries and a substantially lower level of non-performing loans, which printed at 6.1 percent, boosted its profit after tax by 108 percent to N32.4 billion.
Its capital adequacy ratio (CAR) increased to 17.4 percent, providing it with the necessary buffers to weather financial shocks and stormy headwinds in the coming quarters.
FirstBank, one of just a few banks to use the holding company structure, has been proven correct as nearly all of its tier-one competitors have followed suit.
In terms of competitiveness, FirstBank is battling hard to reclaim territory lost to quick fintechs, well-capitalized and efficient Telcos, and their payment savings bank subsidiaries.
In this blood-soaked ocean, FirstBank is well-equipped to fight among the sharks.
“We expect to see FBNH stock rise in the months ahead due to its massive undervaluation and its evident potential upside. We recommend the stock as a BUY”, FDC said.
