FBN Holdings Plc (FBNH) recently announced its Q1-2020 results. Gross earnings came in at NGN159.68 billion up 14. 5% YoY, as PAT in Q1–2020 settled at NGN 60.25 billion up, 62.7% YoY. The latter was powered mainly by 88.9% growth from the non-interest income of NGN49.73 billion vs NGN26.32 billion in Q1-2019.
The FBN holdings grew its operating income by 12.2% YoY to NGN109.99 billion compared to NGN97.98 billion in the same period in 2019. The impairment charge for credit losses declined by 29.9% to NGN9.70 billion, in contrast to NGN13.84 billion in Q1-2020. Trading gains came in solid at NGN13.50 billion vs NGN1.59 billion in Q1-2019, as the bank exploited the high value of its investment securities amidst lower yields.
Growth of e-business was moderate at 9.7% YoY to NGN11.02 billion from NGN10.05 billion in Q1-2019 amidst a reduction in transaction fees as directed by CBN to all banks in Nigeria.
- Trading income supports Non-interest income line as the bank took advantage of the higher value of its investment securities amidst lower yield environment. The line came in robust at NGN13.50 billion from NGN1.59 billion in Q1-2020. Also, Net gains on the financial instrument at fair value through profit or loss printed NGN8.34 billion against the loss of NGN307 million in Q1-2019. Hence, Non-interest income grew by 88.9% to settle at NGN49.73 billion from NGN26.32 billion in Q1-2019.
- Non-performing loans improved to 1.8% from 2.7% in contrast to Q1-2019 of 2.7% as the cost of risk settled at 9.2% from 25.3% in Q1-2019. This was due to the significant decline in an impairment charge for credit losses and an effective loan recovery mechanism which is in line with the bank’s strategy. Cost to income ratio moderated to 65.1% in Q1-2020 from 67.7% in Q1-2019 buoyed by operating income growth of 12.2% YoY against operating expenses growth of 9.7% YoY. Capital Adequacy Ratio was weak at 15.3% vs the regulatory minimum of 15%.
- Net interest margin declined to 6.3% in contrast to 7.7% in Q1-2019 as interest income declined by 4.2% YoY on the back of low yield environment and a decline in interest on loans. Net loans and advances to customers grew by 10.7% to NGN2.05 trillion in the quarter from NGN1.85 trillion in Dec 2019 as customer deposits increased by 6.7% settling at NGN4.29 trillion from NGN4.01 trillion in Dec 2019. Interest expense advanced by 17.9% as funding cost increased.
(READ MORE: Viral setback to global thinking – FBNQuest)
Valuation and Analyst’s Comment
We place a BUY recommendation on FBN Holdings (FBNH NL) Plc, with a 12-month target price of NGN10.30 – translating to an estimated capital gain of 136.76% from its April 24, 2020 closing price of N4.35. The current economic downturn is expected to affect the creditworthiness of business hence, impacting on the bank’s ability to grow loans. We expect the regulatory forbearance to serve as a safe haven in the near-term thereby reducing the impact of current economic event on asset quality – nevertheless we are of the opinion that the capital adequacy ratio of the bank will remain dampened. The lockdown in Lagos, Abuja and Ogun states is expected to boost transaction volume thereby supporting the e-business income line.
Comercio Partners is a limited liability company in Nigeria with core business in trading fixed income securities and equities
Covid-19 protocol: FAAN insists that arriving passengers can only be picked up at car parks
The directive is in accordance with laid down Covid-19 protocols which was issued by the Federal Government.
The Federal Airports Authority of Nigeria (FAAN) has insisted that arriving passengers are to walk to designated car parks to board their vehicles as no driver would be permitted to pick up arriving passengers at the front of the airport terminal.
The directive is in accordance with laid down Covid-19 protocols which was issued by the Federal Government to help contain the spread of the coronavirus disease across the country.
This disclosure is contained in a press statement issued by FAAN and signed by its General Manager, Corporate Affairs, Henrietta Yakubu, on Monday, April 12, 2021.
FAAN in its statement said that drivers are only permitted to park and wait at the car parks adding that they can only drop off the passengers in front of the terminals and are not permitted to wait for any reason.
What FAAN is saying
The statement from FAAN reads, “The Federal Airports Authority of Nigeria (FAAN) hereby advises passengers, drivers and other airport users, particularly those at the General Aviation Terminal, Lagos, to always comply with all laid down protocols on Covid-19 to ensure the safety of all airport users,” the statement read.
“No driver is permitted to pick up arriving passenger(s) at the frontage of the terminals. All drivers must park and wait inside the car parks, while arriving passengers walk down to the car parks to board their vehicles.
“For departing passengers, drivers are only allowed to drop off passengers in front of the terminals. They are not permitted to wait for any reason after dropping their passengers, it is only a ‘Drop Off’ zone.
“We will like to advise all our esteemed customers to strictly adhere to these rules, to ease facilitation and enhance the safety of all airport users.”
In case you missed it
It can be recalled that FAAN, on Friday, advised passengers and airport users to arrive at the airports early, particularly those at the Nnamdi Azikwe International Airport, in order to complete their check-in procedures in good time and avoid unpleasant experiences associated with missing their flights.
In July 2020, the Minister for Aviation, Hadi Sirika, announced that domestic passengers are expected to arrive an hour and a half before departure.
FAAN had also said that anyone, including Very Important Personalities (VIP), who refuses to comply with Covid-19 protocols will not be allowed access to airport facilities.
COVID-19 PROTOCOLS; FAAN TASKS AIRPORT USERS ON COMPLIANCE
The Federal Airports Authority of Nigeria (FAAN) hereby advises passengers, drivers and other airport users, particularly those at the General Aviation Terminal, Lagos, to always comply with all laid down..
— Federal Airports Authority of Nigeria (@FAAN_Official) April 12, 2021
How young Elon Musk started and sold 3 businesses for $1.9bn before Tesla
We look at the 3 successful businesses Elon Musk founded and sold for a collective $1.9bn before starting Tesla.
Success is never an accident. It is most times the result of many years of hard work and consistent effort. Elon Musk is popular today for his electric car company Tesla and his space project SPACE X. But long before these, he was already a multi-millionaire and had founded 3 successful companies which he sold for a collective $1.9bn.
The purpose of this article is to paint a clear picture of what it takes to be among the top 1% of any field. It takes years of consistent hard work to get there. Elon Musk is the perfect example of an individual with a very strong work ethic. His story below will prove that to you.
This article will briefly look at the 3 successful businesses Elon Musk founded and sold for a collective $1.9bn before starting Tesla. Let’s go!
A 12-year-old Elon Musk facing bullying in high school and a not so friendly dad taught himself how to code. According to the Inc. Magazine, he mastered BASIC a general-purpose coding language making use of a commodore PC he acquired himself. He later that year, sold the code for his PC game Blastar to a PC magazine for approximately $500.
This was his first business endeavour which he started and sold.
ZIP 2 ($340m)
After the sale of Blastar for $500, Elon Musk and his brother Kimbal took a $28,000 seed money from their dad and started another internet venture, Zip 2. They rented an office and slept in it because they couldn’t afford a house.
Zip 2 was a web software startup that created online city guides for newspapers. The software was patronized by the New York Times and other notable media companies.
Elon Musk and his brother Kimbal sold Zip 2 to PC giants Compaq for $340m. The year was 1999 and Elon Musk was 28 years old.
Elon Musk continued on his journey of starting companies and selling them. He took $10m out of his earnings from the Zip 2 deal and joined the internet boom.
He founded x.com an online platform he envisioned to be the future of internet banking. In 2000 X.com merged with a Fintech startup, Confinity, founded by Peter Thiel, another would-be billionaire. Both companies combined to become what we know as PayPal today. Elon musk was named CEO of PayPal and had the highest number of shares in the company.
In 2002 PayPal was acquired by eBay for a whopping $1.5bn.
What you should know
Elon Musk has often stressed the need to be consistent and have strong work ethics. In a graduation ceremony by the USC Marshall School Of Business, Elon Musk shared his opinion on work ethics according to CNBC.
“You need to work super-hard. Work hard every waking hour,” Musk said in 2014.
“If you do the simple math, and say if somebody else is working 50 hours [a week] and you’re working 100, you’ll get twice [as much] done in the course of a year as the other company.”
We hope this Monday article will inspire you to work harder and strive to get more work done in record time.
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