FBN Holdings’ Total Asset Climbs N4.8trillion in H1 2016

FBN Holdings Plc, the holding company for First Bank of Nigeria, FBN, and its former subsidiaries, on Tuesday, July 26, reported that total assets had risen to N4.80 trillion by the end of June 2016, as the group rallied above average gain at the Nigerian Stock Exchange,NSE.

FBN Holdings’ share price jumped by 3.48 per cent to close at N3.57 per share, more than threefold of the average price gain of 1.14 per cent recorded by the benchmark index at the Nigerian stock market.

At N4.80 trillion, FBN Holdings’ total assets amounted to 50 per cent of the total market capitalisation of all the quoted companies on the Nigerian Stock Exchange (NSE).

Key extracts of the six-month report for the period ended June 30, 2016 showed that total assets rose to N4.80 trillion by June 2016 as against N4.42 trillion recorded in the comparable period of 2015, representing an increase of 9.0 per cent. A sluggish top-line and impairment charges however constrained the bottom-line.

Gross earnings dropped marginally to N267.9 billion by June 2016 as against N271.3 billion in comparable period of 2015. While interest income had declined by 18 per cent from N205.8 billion to N169.2 billion, non-interest income had jumped by 52 per cent from N61.9 billion to N94.1 billion. Profit before tax meanwhile dropped by 12 per cent from N52.1 billion to N45.9 billion while profit after tax dropped by 11 per cent from N40.1 billion to N35.9 billion.

Group managing director, FBN Holdings Plc, Mr. UK Eke, said the first half performance demonstrated the resilience of the group when considered against the challenging macroeconomic and business environment.

He said with the tough operating environment further exacerbated by the devaluation of the Naira and the persistent rise in inflation, the gross earnings of N267.9 billion and profit before tax of N45.9 billion were reflection of the strength of the groups’ underlying business as well as improvement in cost control.

He added that the focus of the group remains on organic earnings generation, divestment of non-core assets and balance sheet efficiency to further enhance capital.