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FBN Holdings releases 9 months 2019 Results, PBT increased by 17% to N60 billion

FBN Holdings (FBNH) has posted its nine months unaudited results ended September 30, as it boosted its Profit after Tax by 15.3%.

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FBN Holdings Plc releases 9-month financial result, posts 15.33% increase in profit 

FBN Holdings Plc has posted its scorecard for nine months 2019, as it announced a profit before tax that increased from N51.3 billion in September 2018 to N60 billion, up 16.9%  year on year (y-o-y).

Highlight of the scorecard  

  • Gross earnings of N439.9 billion, flat year-on-year (y-o-y) (Sep 2018: N441.5 billion)
  • Net-interest income of N211.4 billion, down 4.6% y-o-y (Sep 2018: N221.5 billion)
  • Non-interest income of N98.8 billion, up 6.0% y-o-y (Sep 2018: N93.2 billion)
  • Operating income of N310.2 billion, down 1.4% y-o-y (Sep 2018: N314.7 billion)
  • Impairment charge for credit losses of N28.5 billion, improved by 62.6% y-o-y (Sep 2018: N76.2 billion)
  • Operating expenses of N221.7 billion, up 18.4% y-o-y (Sep 2018: N187.2 billion)
  • Profit before tax of N60.0 billion, up 16.9% y-o-y (Sep 2018: N51.3 billion)
  • Total assets of N5.7 trillion, up 3.0% year-to-date (y-t-d) (Dec 2018: N5.6 trillion)
  • Customer deposits of N3.7 trillion, up 5.3% y-t-d (Dec 2018: N3.5 trillion)
  • Customer loans and advances (net) of N1.8 trillion, up 8.1% y-t-d (Dec 2018: N1.7 trillion)

[READ MORE: FBN Holdings Plc announces close period ahead of Q3 2019 results]

What it means

The scorecard reflects the growth trajectory over the first nine months of the year, with significant strides made in transforming the Group’s asset quality and diversifying the financial institution’s revenue streams across board.

In the third quarter, UK Eke, the Group Managing Director, FBNH, explained that the bank’s NPL dropped by 12.6% as the bank approached the end of the curve in the resolution of its legacy portfolio and confident of further reducing this to under 10% by the end of the current financial year.

He said, “We have continued to focus on enhancing our risk framework processes enabling an improvement in the quality of our loan book. Concurrently, we have also continued our drive towards ensuing long-term operational efficiency, resulting in a one-off cost increase pushing our CIR for the first nine months.  

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“In terms of our revenue generation, we have delivered further increases in our non-interest income, on the back of growth in electronic banking fees as well as improvements in transaction-led income. 

“Overall, we are pleased with the progress we are making on numerous fronts and remain committed to not only enhancing shareholder value but also adhering to the long-standing principles of this great financial institution.”

Key contributors 

  • Firstmonie Agent Banking network grown to over 35,500 with increasing agent capabilities and customer acquisition
  • Over N2 trillion transactions processed on the Firstmonie agent network, further deepening the retail franchise, banking penetration and financial inclusion
  • FBNQuest Trustees Limited, now a direct subsidiary of FBN Holdings Plc, effective August 30, 2019

Commercial Banking  

  • Gross earnings of N390.6 billion, down 2.0% y-o-y (Sep 2018: N398.7 billion)
  • Net interest income of N196.7 billion, down 5.6% y-o-y (Sep 2018: N208.5 billion)
  • Non-interest income of N75.9 billion, up 0.6% y-o-y (Sep 2018: N75.5 billion)
  • Operating expenses of N194.4 billion, up 17.4% y-o-y (Sep 2018: N165.6 billion)
  • Profit before tax of N50.1 billion, up 18.6% y-o-y (Sep 2018: N42.3 billion)
  • Profit after tax of N44.4 billion, up 14.7% y-o-y (Sep 2018: N38.8 billion)
  • Total assets of N5.42 trillion, up 2.1% y-t-d (Dec 2018: N5.30 trillion)
  • Customers’ loans and advances (net) of N1.85 trillion, up 8.0% y-t-d (Dec 2018: N1.71 trillion)
  • Customers’ deposits of N3.6 trillion, up 6.0% y-t-d (Dec 2018: N3.4 trillion)

[READ ALSO: FBNQuest Trustees Marks 40th Anniversary of preserving legacies in Nigeria]

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What it means

The Commercial Banking business contributed 88.7% (Sep 2018: 90.3%) to the Group’s gross earnings and 84.2% (Sep 2018: 83.2%) to the Group’s profit before tax.

CEO, FirstBank and Subsidiaries, Dr. Adesola Adeduntan, confirmed that the Commercial Banking boosted the performance of the group contributing an 18.6% year-on-year (y-o-y) growth in profit before tax.

He said, “In line with our commitment, we have continued to improve our asset quality while further enhancing the group risk management and controls. These deliberate steps continue to yield positive results with the NPL ratio further declining to 12.4% and impairment charges significantly decreasing by 63.0% y-o-y. 

“As a result, cost of risk is down to 1.8% from 4.5% in the previous year, providing a stronger platform for enhanced future profitability. Clearly, we are in the final phase of addressing the legacy asset quality challenges and achieving our guidance of a single-digit NPL ratio by the end of the year.”

Adeduntan added that the bank would remain focused on transforming its business to a leading transaction-led institution, as highlighted by the 26.7% y-o-y growth in fees and commission-driven by 45.9% y-o-y growth in electronic banking fees.

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“This has positively impacted non-interest income even as we continue to ramp up customer acquisition and retention through improved offerings from agents, digital, trade and transaction banking products.”

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Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper. The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference. The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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ENDSARS

South-West Governors say attacks in Lagos were attempts to weaken the region’s economy

South West governors have they described the coordinated attacks in the state as an attempt to weaken the region’s economy.

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South-West Governors say attacks in Lagos were attempts to weaken the region's economy

Governors of the South-West states have pledged their supports to their Lagos State counterpart, as they described the coordinated attacks in the state as an attempt to weaken the region’s economy.

This was disclosed by the Chief Press Secretary of the state, Gboyega Akosile, during the visits of the Governors and the Federal Executive Council members from SouthWest to the public assets and private properties destroyed in last Wednesday’s arson in the state.

READ: How to access new N75 billion Nigerian Youth Investment Fund

He tweeted, “Shock! This was the expression on the faces of the Federal Executive Council (FEC) members from Southwest and Governors as they toured the public assets and private properties destroyed in Wednesday’s coordinated arson in Lagos State.

“The delegation of Governors and Ministers was personally received by Sanwo-Olu at the State House in Marina, where the Lagos helmsman showed them the pictorial evidence of the violence before visiting some of the torched assets.”

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READ: President Buhari approves N13.3 billion for Community Policing in Nigeria

At a joint press conference held after the tour, Chairman of Southwest Governors’ Forum and Ondo State Governor, Arakunrin Rotimi Akeredolu, SAN, compared the scenes to a war zone, given the extent of the destruction.

According to him, the violence that resulted from the EndSARS protest left much to be desired, stressing that there was an agenda beyond the youth demonstration against police brutality.

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READ: FEC approves $40 oil benchmark for 2021 budget

He said, “We are deeply concerned with the ease with which public buildings, utilities, police stations, and investment of our people have been burnt despite the proximity of security agencies in those areas.

READ: FG suit may lead to delay in Shell’s Bonga project

What this means: From all indications, it is obvious that the South-West Governors believed that the said attack, which were rumoured to have been carried out by suspected hoodlums, were sponsored by some people to deliberately disorganize the region’s economy.

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#EndSARS Protest: 80 BRT buses worth N3.9 billion were destroyed by hoodlums – LASG 

The Lagos State Government disclosed that the 84 BRT vehicles destroyed by the hoodlums cost a total of about N3.9 billion.

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#EndSARS Protest: 80 BRT buses worth N3.9 billion were destroyed by hoodlums - LASG 

The Lagos State Government has revealed that 27 of the burnt Bus Rapid Transit (BRT) vehicles in the Oyingbo and Ojodu Berger areas of the state cost $200,000 each, while 57 of them cost $100,000 each, all totaling about N3.9 billion.

This statement was made by the Lagos State Government on Friday, after evaluating the extent of damage made to the Bus Rapid Transit (BRT) vehicles.

READ: Arik, Dana Airlines to resume flight operations after curfew

What you should know

Few days ago, hoodlums hiding under the cover of #EndSARS protests allegedly attacked and razed the Oyingbo BRT terminal, with several buses burnt. Nairametrics reported that Primero Transport Services Ltd (PRT), the owners of BRT buses said they have lost over N100 million in 6 days due to the #EndSARS protests.

READ: Lagos Bus Service records 10 million passengers in 10 months

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The State’s Commissioner for Information, Mr. Gbenga Omotosho, in an exclusive interview with Punch, disclosed that:

  • 23 big BRT buses were razed down, while 57 medium-size BRT buses were affected by the violence, which brings the total of the BRT vehicles destroyed to 80. 
  • 23 of the 80 BRT buses burnt by the hoodlums were at Ojodu, while the remaining  57 were at the Oyingbo area.  
  • The big buses cost around $200,000 each, while the medium-size ones cost around $100,000 each.

READ: #EndSARS: Lagos orders investigation of Lekki Toll Plaza shooting

What they are saying 

Mr. Omotosho said, “As I speak, the Governor and some of us are going around the state from one facility to the other. We are also visiting private facilities. Some of the places were the Oregun Vehicle Inspection Service office, the BRT park at Oyingbo, and the terminus at Ojodu Berger. 

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“I don’t know how they planned it; the hoodlums left the old buses and went for the new ones. The new ones were worth billions of naira. 

READ: Operators of BRT suspend operations on Ikorodu-TBS route

“However, the cumulative losses incurred by the state are not ready yet. But it will be mind-boggling. It came on a scale beyond belief. We know that the police have apprehended suspects.”

What this means

The vehicles were purchased in dollars; So, the consistent decrease in the value of Naira is expected to edge the cost of these buses up, when denominated in Naira. 

The Lagos State Commissioner for Information, Mr Gbenga Omotosho explained that with the current foreign exchange rate, the 80 destroyed BRT buses are now valued at N3.929 billion.

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BREAKING: Lagos State reviews curfew again, now from 8pm to 6am

Governor Babjide Sanwo-Olu has once again reviewed the curfew in the state to now commence between 8 pm to 6 am.

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4 key points in the new Lagos 2020 Land Use Charge, Lagos offers tech founders N250 million seed fund, cuts stringent access , Governor Sanwo-olu launches 14 ferries to tackle gridlock, says Okada ban irreversible, ride-hailing

The Lagos State Governor, Babajide Sanwo-Olu, has further reviewed the curfew earlier imposed on the state to help contain the large scale violence following the hijacked #EndSARS protests against police brutality and extra-judicial killings. The curfew now starts at 8 pm and ends at 6 am daily.

This is coming 2 days after the Governor had eased the 24-hour curfew to start from 6 pm to 8 am daily.

This disclosure was made by the Lagos State Commissioner for Information and Strategy, Gbenga Omotoso, on Sunday, October 25, 2020.

The Commissioner in his statement said, “The curfew in Lagos State has been reviewed. Restriction time is now 8 pm to 6 am. Lagosians are enjoined to plan their journey times as they go about their lawful businesses. Public schools remain shut till further notice.”

What this means

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This new review gives Lagosians an extra 4 hours to go about their daily activities.

What to expect

The Lagos State government will keep on reviewing and relaxing the curfew, as long as the security situation does not spike again.

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Details later…

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