FirstBank delighted investors with a pleasant surprise when it announced
stellar results confirming that its turnaround strategy is working.
This turnaround strategy is pinned on the pillars of innovation, resilience and digging deep.
Its profit after tax spiked 108% to N32.4billion on the back of massive
loan recoveries and a sharply lower level of non-performing loans
(6.1%).
Its capital adequacy ratio (CAR) increased to 17.4%, giving it
the much-needed buffers required to withstand financial shocks and
turbulent headwinds in the coming quarters.
FirstBank, one of a handful of banks that adopted the holding company
structure, has been proven right as almost all the other tier one
competitors have emulated the model.
As far as competition is concerned,
FirstBank is fighting hard to recover lost grounds to the nimble
fintechs, the highly capitalised and efficient telcos and their payment
savings bank subsidiaries.
Indeed, FirstBank is well equipped to fight amongst the sharks in this
blood-soaked ocean.
We expect to see FBN stock rise in the months ahead due to its massive
undervaluation and its evident potential upside. We recommend the stock
as a BUY.
