FBN Holdings’ Pre-tax Profit For 2024FY Hits N862bn, Surges By 142%

FBN Holdings (FBNH) Plc, has recorded a 142 per cent year-on-year (y-o-y) increase in profit before tax to N862 billion for the year ended December 31, 2024.

The Company in its unaudited Group financial statements released on the Nigerian Exchange Limited stated that “the outstanding financial results showcase significant growth across multiple key metrics. The strong growth recorded on net interest income is a testament to FBN Holdings’ resilience and ability to deliver value in a competitive and evolving market landscape. It is noteworthy that but for the impairment charge of N411 billion, the pre-tax profit would have been N1.3 trillion.

Key highlights of the results showed that gross earnings surged by 113 per cent to N3.33 trillion. Net interest income grew by 155 per cent y-o-y to N1.39 trillion, while non-interest income rose by 43.3 per cent to N846.9 billion compared to N255.8 billion in 2023.

Loans to customers increased significantly by N2.797 trillion to close the year at N9.4 trillion. Customer deposits rose by 62 per cent to N17.29 trillion, while total assets increased to N26.54 trillion, up from N16.94 trillion.

Net interest margin (NIM) improved from 6.11 per cent in 2023 to 9.61 per cent in 2024. The high-rate environment is reflective of the hike in the CBN Monetary Policy Rate (MPR) over the period from 18.75 per cent as at December 2023 to 27.25 per cent at December 2024.

Speaking on the results, FBNH explained that “the non-interest income growth was driven by growth in fee and commission income and Key to this were income on fund transfer, intermediation and fees on digital channels which recorded impressive transaction volumes during the year.”

According to the Company, loans and advances to customers grew by 42 per cent due to new loans to customers from the Commercial Banking Group and impact of naira depreciation on Foreign Currency (FCY) denominated loans and advances.

“The Group has continued to maintain its strong risk management stance, ensuring the resilience of its business, especially in the volatile business environment.

“Deposit liabilities grew by 62 per cent from the Commercial Banking Group on account of continuous deposit mobilization, supported by investments in digital banking capabilities, brand recognition, and impact of naira depreciation on translation of FCY denominated deposits.”

FBN Holding disclosed that this performance will be sustained to improve its shareholder value into the future, saying that “the Group is committed to further enhancing revenue and profitability by strengthening value proposition, refining our governance model, and maximising operational efficiencies.

“In the face of the increasingly competitive environment, the Group maintains a forward-looking approach, with a clear aim of building a sustainable institution and surpassing stakeholders’ expectations.”