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Business News

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.  

“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]

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.

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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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Appointments

Standard Bank Group appoints Yinka Sanni as new Chief Executive of Africa Regions

Yinka Sanni has been appointed as Standard Bank Group’s Chief Executive of Africa Regions.

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Stanbic IBTC declares N10.4 billion interim dividend

The Standard Bank Group has announced the appointment of Yinka Sanni as the new Chief Executive of Africa Regions.

This announcement was made by the Group in a post shared via its official LinkedIn account. The bank revealed that Sanni will be replacing Sola David-Borha who is retiring after 31 years of distinguished service to the group.

His appointment will play an integral role in driving the growth of the Standard Bank Group in Africa further in the years ahead.

He is expected to build on the work of David-Borha, a renowned professional who played a key role in growing the Group’s Africa Regions portfolio in terms of capacity, market share and contribution to the group’s headline earnings.

What you should know

  • Yinka Sanni is a Fellow of the Chartered Institute of Stockbrokers of Nigeria.
  • He has served in key positions within the Stanbic Group, as the Chief Executive of Stanbic IBTC Holdings PLC, Chief Executive of Stanbic IBTC Bank PLC, Deputy Chief Executive of the Bank and Executive Director, Corporate & Investment Banking of the Bank.
  • He was also the pioneer Chief Executive, Stanbic IBTC Pension Managers Limited and the pioneer Chief Executive, Stanbic IBTC Asset Management Limited.

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Corporate Press Releases

P2P crypto marketplace, Bitzlato (BZ) partners with Lemonade Finance to ease money transfers across Africa

The partnership will enable users on the BZ platform to buy and sell bitcoins and other cryptocurrencies on the marketplace at zero cost.

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Bitzlato (BZ), the latest P2P Crypto Exchange to enter the African market, has added Lemonade.Finance, a borderless payment platform for Africa, as a payment method to its platform.

Lemonade Finance provides 100% digital payment experience for Africans to seamlessly participate in the global economy from anywhere in the world without any hassle or regardless of where they are from.

The partnership will enable users on the BZ platform to buy and sell bitcoins and other cryptocurrencies on the marketplace at zero cost.

Users in Nigeria will now be able to send Nigerian Naira (NGN) to MPESA at 0% transaction fee.

Speaking about this partnership, Ridwan Olarere, CEO, Lemonade Finance, said:

“We are excited to partner with such an innovative company like Bitzlato to connect more Africans through payment. Many Africans living on the continent face many difficulties when making payments as remittance companies charge high fees and are time-consuming. We are now providing our users with a cost-effective way of sending money to Ghana, Kenya, Uk and Europe.”

Commenting on the opportunities this provides to crypto traders on the BZ platform, Mike Lunov, CEO, BZ, said:

“This partnership will provide a much-needed gateway that enables the markets we serve to seamlessly interact with each other in a borderless and open environment. We seek to break the barriers that presently exist for cross border transfers and enable our users to generate value through the opportunities that accrue from cryptocurrencies trading. The innovation exhibited by the Lemonade platform, and the brilliance of its team assures users of top-notch, secure and reliable transfers going forward.”

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According to BZ, during the first month, BZ will refund commissions in manual mode while using Lemonade Finance, but this will be automated at the end of this period.

Following this partnership, BZ is now looking to partner with merchants in the crypto space especially in Nigeria, Ghana, South Africa that have a steady flow of Nigerian Naira (NGN) to increase liquidity on the platform.

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Take advantage of the new Lemonade Finance payment method on BZ, which offers zero transactional fees for money transfers from Nigeria into Kenya. Sign up on BZ and start trading crypto easily today.

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