Article summary
- FBN Holdings Plc’s Q1 2023 financial statement reveals a significant increase in profitability, with Profit Before Tax rising by 53.64% to N56.105 billion and Profit After Tax increasing by 54.48% to N50.054 billion.
- Net fee and commission income also saw substantial growth, with a year-on-year increase of 29.18% to N35.297 billion.
- The bank’s strong performance was primarily driven by a surge in interest income, which reached N179.610 billion, representing a growth of 64.10% compared to the same period in 2022.
FBN Holdings Plc has released its unaudited Q1 financial statement for the first quarter ended 31 March 2023.
The Group posted a profit before tax of N56.105 billion for Q1 2023 a 53.64% growth from N36.518 billion reported in Q1 2022. Profit after tax stood at N50.054 billion as against N32.401 billion in 2021, equally representing 54.48% growth.
The profit was boosted largely by interest income of N179.610 billion reported during the period under review as against N109.448 billion posted in 2022, which is an increase of 64.10%.
According to the bank in a statement, Net Interest Income rose by 53.64% to N111.847 billion from N72.796 billion in Q1 2022.
This is on the back of increasing inflation which the economy continues to struggle. Nigeria’s annual inflation rate rose for the fourth straight month to 22.22% in April 2023 from 22.04% in the previous month, according to the latest inflation report released on Monday 15th May 2023.
The report published by the National Bureau of Statistics (NBS) said the food inflation rate quickened to 24.61% in April from 24.46% in the previous month.
- “Looking at the movement, the April 2023 inflation rate showed an increase of 0.18% points when compared to March 2023 headline inflation rate,” it said.
The NBS said similarly, on a year-on-year basis, the headline inflation rate was 5.40% points higher compared to the rate recorded in April 2022, which was 16.82%.
FBN Holdings’ Other Operating Expenses grew by 22.62% to N72.722 billion from N59.305 billion in Q1 2022.
Other key highlights of the result
Net fee and commission income
- 2023 Q1: N35.297 billion
- 2022 Q1: N27.323 billion
- Change: 29.18%
Interest Income
- 2023 Q1: N179.610 billion
- 2022 Q1: N109.448 billion
- Change: 64.10%
Operating Profit
- 2023 Q1: N56.105 billion
- 2022 Q1: N36.590 billion
- Change: 53.33%
Other operating expenses
- 2023 Q1: N72.722 billion
- 2022 Q1: N59.305 billion
- Change: 22.62%
