Connect with us
nairametrics
UBA ads

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%.

Published

on

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]

UBA ADS

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.  

GTBank 728 x 90

“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]

Deal book 300 x 250
onebank728 x 90

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. 

app
GTBank 728 x 90

“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.

“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.”

devland

Patricia

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]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Hospitality & Travel

Covid-19: British High Commission to resume visa application in Nigeria

Nigerians who want to visit the UK can do so as soon as international flight operations resume.

Published

on

Covid-19: British High Commission to Resume Visa Application in Nigeria

The British High Commission in Nigeria has announced plans to resume visa processing in the country. It revealed that it will soon begin receiving visa applications from Nigerians who want to travel to the United Kingdom (UK).

This was disclosed in a public statement by the British High Commission in Abuja on Thursday, July 9, 2020.

UBA ADS

It said that Nigerians who want to visit the United Kingdom can do so as soon as the international flight operations resume in the country. The statement said:

“We know there are many Nigerian nationals hoping to be able to travel to the UK when flights resume, both for employment and to see family members.

“UKVI are working closely with TSL contact, our commercial partner, to reopen visa application centres that were suspended due to COVID-19. UK visa application centres are reopening in phased manner globally when it is safe to do so and when we can operate an effective service.

GTBank 728 x 90

“TSL contact are putting appropriate measures in place and working hard to reopen in Nigeria. We will share details of when VACs will reopen soon,”

READ MORE: US to stop issuing visa for Birth Tourism 

It can be recalled that the Federal Government had shut down the airports to both domestic and international flight operations in March as part of measures to contain the spread of the coronavirus disease.

onebank728 x 90

Following the gradual resumption of domestic flight operations, Nigerians are expecting that international flight operations might be resuming soon.

Patricia
Continue Reading

Commodities

Nigeria’s excess crude account falls to $72 million

Nigeria’s excess crude account has now fallen by a whopping 98% in just 5 years.

Published

on

Capital market to get more tax incentives - FG , FEC reviews Ajaokuta-Kaduna-Kano gas project contract, approves $2.571 billion, FG to reduce N1.5 trillion from 2020 budget due to coronavirus

Nigeria’s Excess Crude Account (ECA) now stands at $72 million as the country continues to grapple with an unprecedented revenue crisis not seen since the early eighties. The ECA account has now fallen by about 98% within the last 5 years.

The information on the excess crude account was revealed by the Minister of Finance, Zainab Ahmed in a National Economic Council Meeting during the week. The ECA is a savings account retained by the Federal Government and is funded by the difference between the market price of crude oil and the budgeted price of crude oil as contained in the appropriation bill.

UBA ADS

There were major concerns last November when it was reported that the ECA balances held just $324.5 million one of the lowest balances recorded at the time. At $72 million the ECA is in low territory highlighting the effect of the fall in crude oil prices this year. Crude oil prices have crashed to sub-zero in March and have risen back o just over $40/barrel in recent weeks. However, it still remains low from Nigeria’s previous budget benchmark.

ECA in the news

About a year ago Nairametrics reported Nigeria’s Excess Crude Account has dropped to $480 million. This is as controversy continues to trail the $1 billion military spendings which were withdrawn from Nigeria’s Excess Crude. According to the Central Bank of Nigeria’s annual report for 2018, Nigeria’s crude excess account fell from $2.45 billion in 2017 to $480 million as of December 2018.

(READ MORE:Rising COVID-19 cases in world’s biggest economy falter crude oil prices)

GTBank 728 x 90

Just 5 years ago (Augst 2015) the ECA stood at $2.2 billion. This was the early days of the Buhari administration. It was $3.6 billion in February 2014 one of the highest balances on record. That same month, at its monthly FAAC, the government agreed to remove fuel subsidy from its books. Fuel subsidy is currently being borne by the NNPC.

The Controversies: Last year, the federal government under President Muhammadu Buhari was accused of mismanaging the country’s Excess Crude Account especially the $1 billion reportedly spent on military equipment.

  • The National Security Adviser (NSA) retired Major General Babagana Monguno Gen. Babagana was quoted to have disclosed that he was not aware of the whereabouts or disbursement of the $1billion drawn from the ECA by the Buhari presidency in 2017 for security purposes.
  • While controversies trail the statement credited to the NSA, with many describing it as diversion of public funds, the Presidency provided some explanations.
  • Responding to the allegations, Senior Special Assistant on Media and Publicity, Garba Shehu, disclosed that various procurements had been made for the purchase of critical equipment for the Nigerian Army, the Nigerian Navy, and the Air Force, contrary to the allegations.

Nigeria’s ECA in retrospect: In Nigeria, there are two Sovereign Wealth Funds: the Excess Crude Account and the Nigeria Sovereign Investment Authority (NSIA). Note that these two are funded by the savings earned when oil prices are at peak.

onebank728 x 90
  • Hence, as a larger chunk of revenue is appropriated for ECA and NSIA, the country’s external reserves are likely to fall.
  • Note that the sovereign wealth fund was established to address the controversies surrounding the Excess Crude Account.
  • The fund is usually expected to generate revenue to meet budget shortfalls in the future, provide dedicated funding for the development of infrastructure and saves for future generations.

ECA depleted by 98% in 5 years: A closer look at the various annual reports of the Central Bank of Nigeria shows that Nigeria’s excess crude account has now fallen by a whopping 98% in just 5 years.

Patricia
Continue Reading

Coronavirus

COVID-19 Update in Nigeria

On the 9th of July 2020, 499 new confirmed cases and 5 deaths were recorded in Nigeria.

Published

on

The spread of novel Corona Virus Disease (COVID-19) in Nigeria continue to record significant increase as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 30,748 confirmed cases.

On the 9th of July 2020, 499 new confirmed cases and 5 deaths were recorded in Nigeria, having carried out a total daily test of 2,302 samples across the country.

UBA ADS

To date, 30,748 cases have been confirmed, 12,546 cases have been discharged and 689 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 171,931 tests have been carried out as of July 9th, 2020 compared to 169,629 tests a day earlier.

COVID-19 Case Updates- 9th July 2020,

  • Total Number of Cases – 30,748
  • Total Number Discharged – 12,546
  • Total Deaths – 689
  • Total Tests Carried out – 171,931

According to the NCDC, the 499 new cases were reported from 24 states- Lagos (157); Edo (59); Ondo (56); Oyo (31); Akwa Ibom (22); Borno (21); Plateau (19); Kaduna (18); Katsina (18); Bayelsa (17); FCT (17); Delta (14); Kano (11); Rivers (10); Enugu (8); Ogun (6); Kwara (4); Imo (3); Nasarawa (2); Osun (2); Abia (1); Ekiti (1); Niger (1); Yobe (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 11,827, followed by Abuja (2,365), Oyo (1,604), Edo (1,562), Delta (1,337), Kano (1,302), Rivers (1,294), Ogun (1,063),  Kaduna (907), Katsina (646), Ondo (606), Borno (584), Gombe (524), Bauchi (519), Ebonyi (503), Plateau (497), Enugu (439), Abia (401),  Imo (359), Jigawa (318).

GTBank 728 x 90

Kwara state has recorded 311 cases, Bayelsa (299), Nasarawa (236), Osun (212), Sokoto (153), Akwa Ibom (134), Niger (125), Benue (121), Adamawa (100), Anambra (93), Kebbi (86), Zamfara (76), Yobe (62), Ekiti (46), Taraba (27), while Kogi and Cross River state have recorded 5 cases each.

 

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

onebank728 x 90

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020.

app
GTBank 728 x 90

 

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
July 9, 202030748499689512546175137
July 8, 2020302494606841512373171927
July 7, 2020297895036691512108170127
July 6, 202029286575654911828168047
July 5, 2020287115446451111665164017
July 4, 202028167603634611462160717
July 3, 2020275644546281211069158677
July 2, 2020271106266161310801156937
July 1, 2020264847906031310152157297
June 30, 202025694561590179746153587
June 29, 20202513356657389402151587
June 28, 20202486749056579007149957
June 27, 20202407777955848625148947
June 26, 20202329868455458253144917
June 25, 20202261459454977822142437
June 24, 20202202064954297613138657
June 23, 20202137145253387338135007
June 22, 20202091967552577109132857
June 21, 202020242436518126879128477
June 20, 202019808661506196718125847
June 19, 202019147667487126581120797
June 18, 20201848074547566307116987
June 17, 202017735587469145967112997
June 16, 202017148490455315623110707
June 15, 20201665857342445349108857
June 14, 202016085403420135220104457
June 13, 20201568250140785101101747
June 12, 20201518162739912489198917
June 11, 2020145546813875449496737
June 10, 20201387340938217435191407
June 9, 2020134646633654420688937
June 8, 2020128013153617404084007
June 7, 20201248626035412395981737
June 6, 2020122333893429382680657
June 5, 20201184432833310369678157
June 4, 2020115163503238353576467
June 3, 2020111663483151332975227
June 2, 20201081924131415323972667
June 1, 20201057841629912312271579
May 31, 20201016230728714300768687
May 30, 2020985555327312285667267
May 29, 202093023872612269763447
May 28, 202089151822595259260647
May 27, 202087333892545250159787
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

devland
Patricia
Continue Reading