FBN Holdings Plc has released its half year unaudited result for the period ended June 30, 2018 growing its gross earnings and profit after tax to N293.3 billion and N33.5 billion respectively.
Profit after tax of the financial conglomerate was up in the first half of the year by 13.7 per cent compared to N29.5 billon which it made in the comparable period of 2017 despite a slight increase of 1.6 per cent in gross earnings and operating income.
Operating income of the holding company for the 2018 half year stood at N210.9 billion compared to N214.4 billion which it recorded for the same period in 2017. FBN Holdings had been able to keep kits operating expenses under check as OPEX was up by 2.3 per cent.
The financial conglomerate in the first half of 2018 spent N119.3 billion on OPEX as against N116.6 billion which it spent in the comparable period of 2017. Total assets was up by 1.3 per cent to N5.3 trillion as at June 30, 2018 compared to N5.2 trillion which it was as at December 31, 2017.
The holding company in the unaudited result showed that while customer deposit is on the rise, its lending to customers has been on the decline. Loans and advances was down by 7.1 per cent at the end of the first six months of the year from N2 trillion which it was as at December 31, 2017.
Deposits had risen by 4.1 per cent to N3.3 trillion up from N3.1 trillion which it was as at December 31, 2017. Commenting on the results, Group Managing Director of FBN Holdings, UK Eke, said the holding company “continues to make steady progress towards delivering on its strategic targets.
“This has been demonstrated with a 13.7 per cent year on year increase in profit after tax, 21.4 per cent year on year growth in non-interest and 15.4 per cent year on year decline in impairment charge. Clearly, the Group is on its way to delivering its promises on asset quality, enhancing revenue generating capacity through non-interest income and driving further efficiencies.
“As we ramp up initiatives to grow interest income, we remain focused on the implementation of key initiatives across our subsidiaries and further strengthen our businesses towards delivering sustainable performance as well as optimising returns to our shareholders.”
On his part, the managing director and chief executive of First Bank and its subsidiaries, Dr. Adesola Adeduntan, said “the Commercial Banking Group reported a relatively strong set of results and I am pleased to report consistent improvement towards our strategic objectives.
‘‘This is reflected in a strong 28.5 per cent year on year increase in non-interest income, reduction in the impairment charge and a marginal increase of 0.9 per cent year on year in operating expenses, despite the high inflationary environment. It is clear that our efforts to enhance our revenue generating capabilities, strengthen the risk management and control environment as well as to optimise efficiencies within our business are paying off.
“We remain focused on maximizing the potential of our business, innovating to expand access to new markets and increasing the contribution of our international subsidiaries, using technology as a key enabler. We expect further improvements in the coming periods, from growth in the quality and yields of the loan book to enhanced remediation efforts, service delivery excellence and the risk and control environment. I am confident in the capacity of our business to deliver the expected results.”
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