FBN Holdings Grows Profit By 48% As Assets Rise To N9.5trn

Financial conglomerate, FBN Holdings Plc has posted a 48 per cent in profit for the half year period ended June 30, 2022 as its total assets grew by 6.6 per cent to N9.5 trillion.

FBN Holdings, in its half year financials released at the weekend, had posted a gross earnings of N359.2 billion as against N293.4 billion made in the half year of 2021 indicating a 22.4 per cent improvement over last year’s figure. Interest income rose 40.6 per cent to N226.4 billion compared to N161 billion made in the comparable period of last year.

With the holding company’s impairment charges for losses down by 18.7 per cent to N21.7 billion, FBN Holdings Profit for the year rose to N56.5 billion as against N38.1 billion profit recorded in the half year period of 2021. Non performing loans of the financial conglomerate had declined to around the industry average of 5.4 per cent as against 7.2 per cent which it was last year.

RELATED

Oluwo Adopts New Title, Says No Traditional Title Superior To Alaafin In Yorubaland

2 hours ago

Customs Intercepts N1.2bn Bulletproof Vests, ‘Tokunbo’ Vehicles, Others

3 hours ago

Cost of funds had risen slightly from 1.8 per cent in the comparable period of 2021 to 1.9 per cent as cost to income ratio rose to 68 per cent compared to 67.9 per cent in the half year period of 2021. Cost of risk had however declined to 1.3 per cent in the first half of 2022 compared to 2.2 per cent which it was in the comparable period of 2021.
Net loans and advances to customers went up by 17.3 per cent from N2.88 trillion as at December 31, 2021 to NN3.38 trillion at the end of the 2022 half year as total assets rose to N9.52 trillion.
tomers deposits likewise rose to N6.3 trillion compared to N5.8 trillion which it was as at December 31, 2021, indication a7.8 per cent growth.
Commenting on the financials, group managing director of the financial conglomerate, Nnamdi Okonkwo, said “FBNHoldings continues to demonstrate resilient performance despite the challenging operating environment with an impressive improvement in revenue and profitability.
“For the half year 2022, gross earnings and profit before tax grew by 22 per cent year on year and 45 per cent y-o-y to N359.2 billion and N65.7 billion respectively. Furthermore, we continue to see good progress across our performance metrics, which remain in line with our focus on driving sustainable growth.
“The Group remains committed in its transformation drive, which has resulted in stronger balance sheet and better asset quality with non-performing loans closing at 5.4 per cent at H1 2022. Similarly, risk management capability remains robust across the Group supporting the drive for enhanced earnings for sustainable capital accretion. During the period, cost to income ratio remained flat y-o-y despite the inflationary and currency pressure, as we continue to focus on optimising overall efficiency.
“Our strategic intent remains unchanged in optimising opportunities that drive growth in revenue, profitability, capital accretion and overall operational efficiency that delivers sustainable value to our stakeholders.”
On his part, the managing director of FirstBank, the commercial banking arm of the group, Dr Adesola Adeduntan said “amidst a challenging operating and dynamic regulatory environment in H1 2022, the Commercial Banking Group remained focused on executing key initiatives to position the Group for improved profitability in FY2022.
“Our half-year results further reinforced our drive towards our ‘Quantum Profitability Leap’ agenda. Our gross earnings are up 22.6 per cent y-o-y to N338.5 billion and net interest income up 49.3 per cent y-o-y to N152.9 billion respectively. On the back of the impressive growth recorded in our top line, our profit before tax recorded a strong growth of 40 per cent y-o-y to N60 billion, whilst profit after tax also grew by 42.3 per cent y-o-y to N53.3 billion as the Bank continues to reap the dividends of the successful restructuring of our balance sheet and revamping of our risk management architecture.
“We continue to record progress in driving down our non-performing loan ratio which now stands at 5.4 per cent at the end of H1 and we are on target to bring it within regulatory limit of five percent by end of FY2022. As we go into the second half of 2022, I am confident that the Commercial Banking Group will sustain the current momentum of generating impressive returns from the quality risk assets portfolio already created, whilst optimising its balance sheet given changing macro-economic conditions.
“Furthermore, we will continue to strengthen our dominant digital banking capabilities in providing best-in-class services to all segments of our customers across all our footprints in sub-Sahara Africa and beyond.”