FBN Holdings Plc has released its Q1 financial statement for the first quarter ended 31 March 2022.
The Group posted a profit after tax of N32.44 billion for the first quarter on March 31, 2022, a 107.63% growth over N15.620 billion reported in 2021.
Profit before tax stood at N36.518 billion as against N8.905 billion in 2021, equally representing 93.16% growth.
The profit was boosted largely by interest income of N109.448 billion reported during the period under review as against N78.357 billion posted in 2021, accounting for an increase of 39.67%.
The interest income was generated from Investment securities which yielded N23,663 billion, loans and advances to banks which was N11,341 billion and loans and advances to customer which stood at N74,44 billion.
The Group had delivered a stellar performance growing gross revenue by 28.2% to N757.3 billion and profit before tax by 99.1% to N166.7 billion.
Interest income remained challenged given the moderated interest rate environment negatively impacting yields; as a result, interest income declined 4.1% to N369.0 billion as against N384.8 billion in 20220.
To mitigate the effect of the low-interest rate on investment securities and revenue generation the group remained deliberate with its intensified deposit mobilization and funding strategy to support enhanced loan growth at optimised rates leading to a 5.7% increase in interest expense to N140.8 billion as against N133.2 billion in 2020.
Other key highlights of the results
- Fee and commission expenses grew by 14 % y-o-y to N6.387 billion from N5.600 billion in 2021
- Interest expenses grew by 40.37% y-o-y to N36.652 billion in 2022 from N25.564 billion in 2021
- Operating profit grew by 93.54% y-o- y to N36.590 billion from N18.905 billion a year earlier
- Net fees and commission income dropped by 3.88% y-o-y to N27.323 billion from N28.427 billion in 2021
