FBN Holdings Plc on Monday told stockbrokers and other capital market stakeholders that it had made strategic changes to its operations to overcome the challenges posed by recent regulatory changes.
The Group Chief Executive Officer, FBN Holdings, Mr. Bello Maccido, said this during a ‘Facts behind the figures’ presentation at the Nigerian Stock Exchange.
Maccido, who described 2013 as a very difficult year for banking institutions, explained that the increase in Cash Reserved Ratio on public sector funds and other changes cost the bank up to N32bn.
But for the changes, he said, the group’s profit before tax for the 2013 financial year would have been far higher than the N91bn it realised.
Specifically, he said the increase of the CRR to 75 per cent and 12 per cent on public sector deposits, and private sector deposits respectively resulted in the loss of N7bn in revenue.
Similarly, the upward review of interest on savings account from one per cent to 3.6 per cent led to an increased interest cost of N9.2bn, while the gradual phase out of Commission on Turnover from N5 to N3 in 2013 resulted in the loss of N3.4bn in COT income in 2013.
He added that the increase in Asset Management Company of Nigeria levy from 0.3 per cent to 0.5 per cent of total assets; plus 1/3 of contingencies led to an increase in AMCON fee from N7.4bn in 2012 to N13.9bn in 2013.
Source: Punch