Demands for FBN shares soar as Adeduntan returns

April 30, 2021
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Investor demand for FBN Holdings shares rose significantly on Friday, April 30, 2021, a day after the Central Bank fired the board members of the company and the bank.

About 74 million shares of the stock have been traded today making it the stock with the highest volume of trade and value during the day.

With an hour to go, the bank had a bid depth of about 73.5 million and an offer depth of 34.5 million indicative of a net bid and suggesting that there were more investors interested in buying the bank’s shares than wanting to sell.

FBN Holdings stock closed lower by about 6% on Thursday as investors reacted negatively to CBN’s query to the bank to reverse the removal of Dr Sola Adeduntan as MD/CEO.

However, on Thursday the CBN Governor, Godwin Emefiele held a press conference where he reinstated Adeduntan as MD/CEO and fired the board of both the bank and its parent company.

At N6.7, FBN Holdings’ share price is one of the cheapest in the banking sector trading at a price to earnings ratio of just 3.3x. The market capitalization of the stock is also 31% of its Net Asset, another metric that suggests it could be undervalued.

Meanwhile FBN holdings has confirmed the reinstatement of Dr. Adesola Adeduntan as MD/CEO.

In a statement by the company, it said it has also confirmed the reconstitution of the Board of Directors of First Bank of Nigeria Limited.

The Board of Directors of First Bank of Nigeria Limited is now comprised as follows:

Mr. Tunde Hassan-Odukale – Chairman

Mrs. Tokunbo Martins

Mr. Uche Nwokedi

Mr. Adekunle Sonola

Ms. Isioma Ogodazi

Mr. Ebenezer Olufowose

Mr. Ishaya Elijah B. Dodo

Dr. Adesola Adeduntan FCA – Managing Director/ Chief Executive Officer

Mr. Gbenga Shobo – Deputy Managing Director

Dr. Remi Oni – Executive Director

Mr. Abdullahi Ibrahim – Executive Director

Dr. Adesola Adeduntan has since resumed work as CEO in line with the directives of the CBN.

“We can confirm that the Bank is cooperating with the Central Bank of Nigeria and other regulators while the operations of the Bank are not hampered or hindered in any way and are in fact running smoothly.”

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