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First Bank Holdings Posts N439bn Gross Earnings In 9 Months



FBN Holdings (FBNH), yesterday, said it recorded gross earnings of N439.9 billion for the nine months ended September 30, 2019.

The company disclosed this in a statement announcing its financial results for the nine months period.

Net-interest income stood at N211.4 billion, down 4.6 per cent year-on-year (y-o-y) from N221.5 billion in 2018, while non-interest income stood at N8.8 billion, up six per cent from N93.2 billion in 2018.

Operating income went down by 1.4 per cent from N314.7 billion to N310.2 billion under the period review.

Also, the Company’s profit after tax increased by 15.3 per cent to N51.8 billion, higher than N44.9 billion recorded in nine month, 2018.

Customer deposits up by 5.3 per cent to N3.7 trillion, from N3.5 trillion achieved as at December, 2018, while customer loans and advances stood at N1.8 trillion, up 8.1 per cent from N1.7 trillion as at December, 2018.

Total assets of the Company stood at N5.7 trillion, as against N5.6 trillion as at December, 2018.

Speaking on the results, the Group managing director of FBN Holdings, UK Eke said, “Our performance in the third quarter reflects the growth trajectory over the first nine months of the year, with significant strides made in transforming the Group’s asset quality and diversifying our revenue streams across the board.”

He stated that “During the third quarter, our NPL declined further to 12.6 per cent as we approach the end of the curve in the resolution of our legacy portfolio and are confident of further reducing this to under 10 per cent by the end of the current financial year.

“Critically, we have continued to focus on enhancing our risk framework processes enabling an improvement in the quality of our loan book. Concurrently, we have also continued our drive towards ensuing long-term operational efficiency, resulting in a one-off cost increase pushing our CIR for the first nine months.”

Eke noted that “In terms of our revenue generation, we have delivered further increases in our non-interest income, on the back of growth in electronic banking fees as well as improvements in transaction-led income.

“Overall, we are pleased with the progress we are making on numerous fronts and remain committed to not only enhancing shareholder value but also adhering to the long-standing principles of this great financial institution.”

Also, the chief executive officer of First Bank, Dr. Adesola Adeduntan,  said the Commercial Banking Group further improved its performance delivering an 18.6 per cent year-on-year (y-o-y) growth in profit before tax, saying that “In line with our commitment, we have continued to improve our asset quality while further enhancing the group risk management and controls.

“These deliberate steps continue to yield positive results with the NPL ratio further declining to 12.4 per cent and impairment charges significantly decreasing by 63 per cent y-o-y.”

He added that as a result, cost of risk is down to 1.8 per cent from 4.5 per cent in the previous year, providing a stronger platform for enhanced future profitability.

He further said that “We are in the final phase of addressing the legacy asset quality challenges and achieving our guidance of a single digit NPL ratio by the end of the year.”

Adeduntan pointed out that operational efficiency remains a key focus as the Group addresses all structural issues.

According to him, with this in focus, we remain confident in our abilities to improve this metric going forward.

“In addition, our international subsidiaries have continued to contribute positively to our overall performance as we keep optimising the capacity of the Group to support stronger future earnings”.