The holding company of FirstBank, FBN Holdings Plc, announced its unaudited results for the nine months ended 30 September 2016, on Wednesday, October 26, with 7 per cent growth in gross earnings at N417.3 billion from N390.0 billion in the same period in 2015.
The highlights of the result include: Net-interest income of N202.9 billion, up 5.2% y-o-y(Sept 2015: N192.9 billion); Non-interest income of N131.0 billion, up 56.5% y-o-y (Sept 2015: N83.7billion); Operating income of N333.9billion, up 20.7% y-o-y (Sept 2015: N276.6billion); Impairment charge for credit losses ofN114.7 billion (Sept 2015: N46.6 billion); Operating expenses ofN161.8billion, down 5.1% y-o-y (Sept 2015: N170.4billion); Profit before tax of N57.5 billion, down3.5%y-o-y(Sept 2015: N59.6 billion); Profit after tax N42.5billion, down 15.3%y-o-y(Sept 2015: N50.2 billion).
The total assets of the group jumped by 21.6% year-to-date to N5.1 trillion from N4.2 trillion as at Dec 2015; Customer deposits of N3.3trillion, up 10.9% y-t-d (Dec 2015: N2.97 trillion); and Customer loans and advances (net) of N2.2trillion, up 21.6%y-t-d (Dec 2015: N1.8trillion).
The Key Ratios of the group include; Post-tax return on average equity of 9.4% (Sept 2015: 12.2%); Post-tax return on average assets of 1.2% (Sept 2015: 1.5%); Net-interest margin of 7.5% (Sept 2015: 7.7%); Cost to income ratio of 48.4% (Sept 2015: 61.6%); NPL ratio of 24.9% (Sept 2015: 4.8%); 54.3% liquidity ratio (FirstBank (Nigeria)) (Sept 2015: 49.7%, Dec 2015: 58.6%).
The Group Managing Director, UK Eke, who commented on the result said: “FBNHoldings’ performance has again demonstrated its underlying resilience despite the ongoing macroeconomic and business challenges with gross earnings and profit before tax closing at N417.3 billion and N57.5 billion respectively.”
“This has been achieved through sustained revenue generation as well as increased cost efficiencies. Although the current currency weakness is a challenge for our remedial process, we are steadfastly progressing on improving the overall risk management culture, governance and technology as well as the degree of compliance across the Group.”
“The Group remains committed to ensuring sustained improvement in our performance with a view to restoring shareholder value.”
Commenting on the results Dr. Adesola Adeduntan, the MD/CEO of FirstBank and its subsidiaries said: “FirstBank and its subsidiaries returned a 6.0% y-o-y growth in gross earnings at N381.0 billion as we continue to push to improve the performance of our business despite the tough operating environment exacerbated by the currency weakness. To achieve the desired results, we have identified talents, and recruited highly competent personnel in strategic functions towards returning the group to its leadership position.
“Furthermore, having addressed the structural and organisational challenges of our risk management architecture and as we remain focused on the remediation and recovery efforts.”
He added the firm is progressing with the Enterprise Resource Planning and Risk Management implementation project as well as other transformational initiatives to drive further operational efficiencies, service delivery excellence and enhanced earnings.
