FBNH released its 2015 H1 results showing pre-tax profits rose 8% to N52billion (2014 H1: N48.2billion). A further look at the results revealed the second quarter of the year (April to June 2015) was pivotal to the stellar results they have just posted.
Key Highlights
- Net Interest Income was up 15% YoY
- Net Interest Income was up 22% QoQ and 29% 2015 Q2 vs 2014 Q2
- This quarter is by our records the best it has recorded in terms of operating profit before impairments at about N43.6 billion
- FBNH also raked in about N16.9billion in gains from foreign exchange
- Despite this big gains an impairment (loan losses) of N18.5billion was recorded this quarter alone taking impairment charges to about N22.5billion this year alone.
- Loan losses for the whole of 2014 was N26 billion
- Operating expenses is still high at N119billion
2015 H1 vs 2014 H1
| FBN Holdings | |||
| 2015 H1 | 2014 H1 | %age Change | |
| N’m | N’m | ||
| Income Statement | |||
| Gross Earnings | |||
| Interest Income | 205,798 | 164,859 | 24.83% |
| Interest Expense | (73,102) | (49,696) | 47.10% |
| Net Interest Income | 132,696 | 115,163 | 15.22% |
| Net Insurance Premium | 2,690 | 1,585 | 69.72% |
| Exchange Commissions and Fees | 28,867 | 31,124 | -7.25% |
| Net Gains on Financial Instruments | 3,740 | 147 | 2444.22% |
| Net Premium & Other Income | 25,866 | 9,793 | 164.13% |
| Total Operating Income | 193,859 | 157,812 | 22.84% |
| Operating Expenses | (119,190) | (103,420) | 15.25% |
| Operating Profit | 74,669 | 54,392 | 37.28% |
| Loan Impairment | (22,583) | (6,660) | 239.08% |
| Share of Profit/(Loss) of associate | – | 520 | |
| Profit from discontinued operations | – | – | |
| Profit before Tax | 52,086 | 48,252 | 7.95% |
| Taxation | (12,025) | (11,072) | 8.61% |
| Comprehensive Income | |||
| Profit after Tax & Comp. Income | 40,061 | 37,180 | 7.75% |
| Tax as a %age of PBT | 23.09% | 22.95% | |
| Balance Sheet Highlights | 2015 H1 | Full Year | |
| Loans & Advances | 2,514,504 | 2,639,891 | -4.75% |
| Deposits | 3,296,336 | 3,222,004 | 2.31% |
| Net Assets | 557,499 | 522,890 | 6.62% |
| Retained Earnings | 144,786 | 108,637 | 33.28% |
| Total Assets | 4,418,189 | 4,324,666 | 2.16% |
| Net Assets as a percentage of loans | 22% | ||
| Indices | |||
| Earnings Per Share (N) | #DIV/0! | ||
| Outstanding Shares (Million) | 32,632.08 | 32,632.08 | 0.00% |
| Interest Margin | 64.5% | 69.9% | -7.70% |
| Commission as a %age of Income | 13.3% | 18.9% | |
| Operating profit as a percentage of Operating Income | 38.5% | 34.5% | 11.75% |
| Net Interest as a percentage of loans | 5.1% | ||
| Net Interest as a %age of average deposits | 4.1% | ||
| Loans as a percentage of deposit | 77.2% | ||
| Loan to Average Equity | 4.77 | ||
| Return on Average Equity | 7.4% | ||
| Return on Asset | 1.2% | ||
| Cost to Income Ratio | 61.5% | 65.5% | -6.18% |
| Loan Impairment to Operating Profit | 30.2% | 12.2% | 147.00% |
2015 Q1 vs 2015 Q2
| FBN Holdings | |||
| 2015 Q1 | 2015 Q2 | %age Change | |
| N’m | N’m | ||
| Income Statement | |||
| Gross Earnings | |||
| Interest Income | 95,308 | 110,490 | 15.93% |
| Interest Expense | (35,742) | (37,360) | 4.53% |
| Net Interest Income | 59,566 | 73,130 | 22.77% |
| Net Insurance Premium | 1,691 | 999 | -40.92% |
| Exchange Commissions and Fees | 12,779 | 16,088 | 25.89% |
| Net Gains on Financial Instruments | 9,706 | (5,966) | -161.47% |
| Net Premium & Other Income | 4,545 | 21,321 | 369.11% |
| Total Operating Income | 88,287 | 105,572 | 19.58% |
| Operating Expenses | (57,262) | (61,928) | 8.15% |
| Operating Profit | 31,025 | 43,644 | 40.67% |
| Loan Impairment | (4,081) | (18,502) | 353.37% |
| Share of Profit/(Loss) of associate | – | – | |
| Profit from discontinued operations | – | – | |
| Profit before Tax | 26,944 | 25,142 | -6.69% |
| Taxation | (4,341) | (7,684) | 77.01% |
| Comprehensive Income | – | ||
| – | |||
| Profit after Tax & Comp. Income | 22,603 | 17,458 | -22.76% |
| Tax as a %age of PBT | 16.11% | 30.56% | |
| Indices | |||
| Earnings Per Share (N) | #DIV/0! | ||
| Outstanding Shares (Million) | 32,632 | 32,632 | 0.00% |
| Interest Margin | 62.5% | 66.2% | 5.90% |
| Commission as a %age of Income | 13.8% | 13.0% | -6.28% |
| Operating profit as a percentage of Operating Income | 35.1% | 41.3% | 17.64% |
| Cost to Income Ratio | 64.9% | 58.7% | -9.56% |
| Loan Impairment to Operating Profit | 13.2% | 42.4% | 222.28% |
2015 Q2 vs 2014 Q2
| FBN Holdings | |||
| 2014 Q2 | 2015 Q2 | %age Change | |
| N’m | N’m | ||
| Income Statement | |||
| Gross Earnings | |||
| Interest Income | 83,380 | 110,490 | 32.51% |
| Interest Expense | (26,992) | (37,360) | 38.41% |
| Net Interest Income | 56,388 | 73,130 | 29.69% |
| Net Insurance Premium | 999 | #DIV/0! | |
| Exchange Commissions and Fees | 16,665 | 16,088 | -3.46% |
| Net Gains on Financial Instruments | (2,822) | (5,966) | 111.41% |
| Net Premium & Other Income | 9,207 | 21,321 | 131.57% |
| Total Operating Income | 79,438 | 105,572 | 32.90% |
| Operating Expenses | (51,109) | (61,928) | 21.17% |
| Operating Profit | 28,329 | 43,644 | 54.06% |
| Loan Impairment | (4,948) | (18,502) | 273.93% |
| Share of Profit/(Loss) of associate | 364 | – | |
| Profit from discontinued operations | – | – | |
| Profit before Tax | 23,745 | 25,142 | 5.88% |
| Taxation | (7,848) | (7,684) | -2.09% |
| Comprehensive Income | – | ||
| – | |||
| Profit after Tax & Comp. Income | 15,897 | 17,458 | 9.82% |
| Tax as a %age of PBT | 33.05% | 30.56% | |
| Indices | |||
| Earnings Per Share (N) | #DIV/0! | ||
| Outstanding Shares (Million) | 32,632 | 32,632 | 0.00% |
| Interest Margin | 67.6% | 66.2% | -2.13% |
| Commission as a %age of Income | 19.7% | 13.0% | -34.34% |
| Operating profit as a percentage of Operating Income | 35.7% | 41.3% | 15.92% |
| Cost to Income Ratio | 64.3% | 58.7% | -8.83% |
| Loan Impairment to Operating Profit | 17.5% | 42.4% | 142.71% |