FBNHoldings Plc has announced the release of its third-quarter financial statements for the period ending 30th September 2023.
The Group’s profit before tax was up 156.3% to N270.3 billion from N105.5 billion posted in 2022, driven by strong growth in interest income.
According to the group’s financial statements for nine months, the company’s profit after tax (PAT) was N236.4 billion, a 159,2% increase from the N91.2 billion recorded in the corresponding period in 2022
This is on the back of increasing inflation which the economy continues to struggle with. Headline inflation increased to 26.72%, representing a 0.92 %-point rise from the previous month’s 25.80%.
The data is from the recently released Consumer Price Index (CPI) report for September 2023 by the National Bureau of Statistics (NBS).
The surge in inflation is primarily attributed to the removal of petrol subsidies and the devaluation of the official exchange rate, both significantly impacting consumer prices.
Food and non-alcoholic beverages accounted for the most significant share at 13.84%, followed by housing water, electricity, gas, and other fuels at 4.47%, and clothing and footwear at 2.04%.
The group reported gross earnings of N922.2 billion, up 80.1% y-o-y from N547.2 billion recorded in 2022.
The company posted a net interest income of N377.0 billion, up 51.4% y-o-y as against N249.5 billion recorded in 2022.
The group’s non-interest income stood at N326.9 billion, up 108% y-o-y from (Sep 2022: N157 billion).
Operating expenses were N352.3 billion, up 33.3% y-o-y (Sep 2022: N264.3 billion).
What the group is saying:
Nnamdi Okonkwo, the Group Managing Director commented:
- “Over the period, we have delivered a strong performance and growth enabled by focused execution of our strategic plans. Gross earnings were up by 80.1%, while our profit before tax grew by 156% year-on-year. At the same time, our credit risk portfolio remains healthy, with an NPL ratio of 4.6% and a coverage of 85.4%. Cost to cost-to-income ratio improved to 50% from 65% in 2022 on the back of enhanced revenue generation as well as effective cost-containment initiatives despite the high inflationary environment.
- We remain committed to leveraging technology, automation, and our brand strength to enhance our value proposition, increase revenues, and improve the overall operational efficiency of the Group.
- We are confident in our continuous progress in generating sustainable value for our shareholders.”
Commenting on the results, Dr Adesola Adeduntan, Chief Executive Officer of First Bank of Nigeria Limited (Commercial Banking Group) stated that:
- “In the nine months ended September 30, 2023, FirstBank Group reported impressive financial results, reflecting sustained growth and resilience of the franchise. Our gross earnings at the end of the quarter were N922.2 billion, marking a remarkable increase of 79.8% year-on-year.
- The substantial increase of 49.3% y-o-y in net interest income reflects our commitment to managing interest rate dynamics effectively and optimising our interest-earning assets, while the impressive growth of 111.6% y-o-y in non-interest income underscores our success in diversifying the Bank’s revenue streams and providing value-added services to our customers.
- Growth of 157.9% and 158.2% y-o-y in Profit Before Tax and Profit After Tax respectively reflect our commitment to delivering exceptional value to our shareholders and stakeholders.
- This performance is a testament to the dedication and hard work of our entire team, and it reaffirms FirstBank’s position as one of the leading players in the commercial banking industry.
- As we continue to face dynamic market conditions, our agility, risk management capabilities, and strategic approach will remain pivotal in sustaining this impressive growth trajectory.
- Looking ahead, we are committed to sustaining this momentum, exploring new growth opportunities through innovation, and upholding our core value of customer centricity”.