FBN Holdings Plc on Thursday, July 27, announced its unaudited results for the six months ended 30 June 2017 with gross earnings of N288.8 billion, up 7.8% year-on-year (y-o-y) from N267.9 billion in H12016.
Highlights of the result showed Net-interest income of N164.1 billion, up 30.2% y-o-y (Jun 2016: N126.1 billion); Non-interest income of N50.5 billion, down 46.3% y-o-y (Jun 2016: N94.1 billion).
Operating income of N214.4 billion, down 2.6% y-o-y (Jun 2016: N220.1 billion); Impairment charge for credit losses of N62.4 billion, down by 10.7% y-o-y (Jun 2016: N69.9 billion).
Operating expenses of N116.6 billion, up 11.8% y-o-y (Jun 2016: N104.3 billion); Profit before tax of N35.6 billion, down 22.4% y-o-y (Jun 2016: N45.9 billion); Profit after tax N29.5 billion, down 17.8% y-o-y (Jun 2016: N35.9 billion)
Highlights of the statement of financial position indlude Total assets of N4.9 trillion, up 3.0% year-to-date (y-t-d) (Dec 2016: N4.7 trillion); Customer deposits of N3.0 trillion, down 3.5% y-t-d (Dec 2016: N3.1 trillion); Customer loans and advances (net) of N2.0 trillion, down 4.1% y-t-d (Dec 2016: N2.1 trillion)
The Key Ratio of the group showed Post-tax return on average equity of 9.9% (Jun 2016: 12.0%); Post-tax return on average assets of 1.2% (Jun 2016: 1.6%); Net-interest margin of 8.5% (Jun 2016: 7.2%); Cost to income ratio of 54.4% (Jun 2016: 47.4%2); NPL ratio3 of 22.0% (Jun 2016: 22.8%, Dec 2016: 24.4%); 50.4% liquidity ratio (FirstBank (Nigeria) (Jun 2016: 55.9%, Dec 2016: 52.7%); 17.6% Basel 2 CAR4 (FirstBank (Nigeria) (Jun 2016: 15.4%, Dec 2016: 17.8%); 26.7% Basel 2 CAR (FBN Merchant Bank) (Jun 2016: 27.9%, Dec 2016: 22.6%)
Commenting on the results, UK Eke, MFR, the Group Managing Director said: “FBNHoldings has again demonstrated its strong revenue generating capacity in the current economic environment reporting gross earnings of N288.8 billion – up 7.8% y-o-y.
He added that in line with the FBN’s strategic focus on improving asset quality; cost optimisation; and, enhancing revenue generation, it’s beginning to see improvement across a number of metrics associated with these initiatives.
