FBN Holdings Reports N427b Gross Earnings, N40.9b Profit In Nine Months


By Moses Ebosele, ebosele@hotmail.com

For the nine months ended September 30, 2021, FBN Holdings Plc has declared                                

gross earnings of ₦427.0 billion, down 2.8 per cent when compared to ₦439.3 billion attained within same period in 2020.

Profit after tax according to FBN Holdings stood at ₦40.9 billion, down by 28.4 per cent  when compared to ₦54.4 billion recorded in September, 2020.

Other major highlights include:

•    Net-interest income of ₦163.0 billion, down 15.4% y-o-y (Sep 2020: ₦192.7 billion)
•    Non-interest income of ₦149.4 billion, up 17.7% y-o-y (Sep 2020: ₦127.0 billion)
•    Impairment charges for losses ₦29.6 billion, down by 36.5% y-o-y (Sep 2020: ₦46.7 billion)
•    Operating expenses of ₦229.5 billion, up 9.4% y-o-y (Sep 2020: ₦209.8 billion)
•    Profit before tax of ₦52.9 billion, down 16.4% y-o-y (Sep 2020: ₦63.3 billion)
 Statement of Financial Position


•    Total assets of ₦8.5 trillion, up 10.6% year-to-date (y-t-d) (Dec 2020: ₦7.7 trillion)
•    Customer deposits of ₦5.4 trillion, up 10.6% y-t-d (Dec 2020: ₦4.9 trillion)
•    Customer loans and advances (Net) of ₦2.8 trillion, up 24.8% y-t-d (Dec 2020: ₦2.2 trillion)
 Key Ratios

•    Post-tax return on average equity of 7.2% (Sep 2020: 13.2%)
•    Post-tax return on average assets of 0.7% (Sep 2020: 1.4%)
•    Net-interest margin of 4.4% (Sep 2020: 6.6%)
•    Cost to income ratio of 73.5% (Sep 2020: 65.6%)
•    NPL ratio of 7.3% (Sep 2020: 8.8%)
•    15.5% Basel 2 Capital Adequacy Ratio (FirstBank Nigeria) (Sep 2020: 15.7%)
•    21.1% Basel 2 Capital Adequacy Ratio (FBNQuest Merchant Bank) (Sep 2020: 17.2%)
Commenting, U.K. Eke, the Group Managing Director said:“The FBNHoldings’ nine months performance reflects the events in the yield environment and the macroeconomic challenges.  

 “However, the Group has continued to drive revenue momentum from the increase in loan growth, to deepening the transaction-led banking model, evidenced by our continued growth in non-interest income, as well as improving the performance from the Merchant Banking and Asset Management business. We have remained committed to our long-term strategic ambitions and are pleased with the progress made in driving stability in performance, and ensuring the Group is well-positioned to grow through the current 2020 – 2024 strategic cycle. 

“The first nine months of this year have witnessed significant changes at FBNHoldings with the appointment of new Non-Executive Directors at FBNHoldings and FirstBank with a view to enhancing governance practices.  

“These developments along with the realignment of the Group on steadier ground over the last few years pave the way for a successful and prosperous future. 

“As previously announced, the Board of FBNHoldings at its meeting of October 27, 2021, accepted my voluntary retirement from the role of GMD from December 31, 2021. I will be handing over my duties to Mr. Nnamdi Okonkwo who has been appointed as the GMD designate and will officially take up his role from January 1, 2022. 

“I am incredibly proud of the progress we have made over the last six years as we cleaned up the books and reorganised the entire risk management framework, leading to a significant decline in the NPL ratio from above 20% to 7.3%. Over this period,  

“We have also pushed our individual and collective innovativeness to new frontiers and developed a leading digital banking capability that will shape the future of our organisation.  

“I am confident the Group will benefit from this progress and recapture its market leadership under the leadership of Mr. Okonkwo and the highly capable Executives across the entire Group.

“Finally, I would like to thank the Board, all employees and our various stakeholders for their support and trust over the course of my tenure. It has been my privilege to serve this great organisation and I look forward to seeing its continued progress.”