FBN Holdings continues to demonstrate resilient performance despite the challenging operating environment with an impressive improvement
By Eugene Onyeji
FBN Holdings Plc, the holding company for First Bank of Nigeria, has reported a strong outing in the first half of the financial year 2022 with gross earnings of N359.2 billion, showing an increase of 22.4 per cent, from N293.4 billion recorded in the comparable period of 2021.
According to the unaudited result released to the Nigerian Stock Exchange on Friday, its group’s profit before tax increased significantly to N65.7 billion from N45.2 billion achieved in the corresponding period of 2021, representing 45.3 per cent improvement of the mid-year performance.
FBN holdings profit for the period stood at N56.5 billion against N38.1 billion posted in the comparative period of 2021, representing an increase of 48.6 per cent.
Net interest income rose 47.3 per cent from N103.8 billion to N152.9 billion in 2022, while non-interest income marginally dropped by 0.2 per cent from N120.9 billion to N120.6 billion in 2022.
Speaking on the result, the Group Managing Director, Nnamdi Okonkwo, said, “FBN Holdings 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 and 45 per cent 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 to its transformation drive, which has resulted in a stronger balance sheet and better asset quality with non-performing loans closing at 5.4 per cent at H1 2022.
“Similarly, risk management capacity 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.
According to Okonkwo, “FBN Holdings strategic intent remains unchanged in optimising opportunities that drive growth in revenue, profitability, capital accretion and overall operational efficiency that delivers sustainable value to its stakeholders.”
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Also commenting, Dr Adesola Adeduntan, the Chief Executive Officer of First Bank of Nigeria Ltd., said that the commercial banking group remained focused on executing key initiatives to position the Group for improved profitability in 2022, amidst a challenging operating and dynamic regulatory environment in H1 2022.
“Our half-year results further reinforced our drive toward our ‘Quantum Profitability Leap’ agenda. Our gross earnings are up 22.6 per cent to N338.5 billion and net interest income up 49.3 per cent 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 to N60 billion.
“Profit after tax also grew by 42.3 per cent to N53.3 billion as the bank continues to reap the dividends of the successful restructuring of its 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 the regulatory limit of five per cent by end of 2022.’’
“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.
Adeduntan said, “First bank we will continue to strengthen its dominant digital banking capabilities in providing best-in-class services to all segments of customers across all footprints in sub-Sahara Africa and beyond.”
