FBN Holdings increases earnings to N294.2bn in H1 2019

Motolani Oseni

FBN Holdings Plc (FBN) has reported gross earnings of N294.2 billion for the six months ended 30 June 2019.

The Holdings in its unaudited results for the half-year, which was released yesterday increased its earnings by 0.3 per cent year-on-year (y-o-y), compared to N293.3 billion recorded in June 2018.

The financial statement further stated that the firm Profit before Tax (PbT) up by 2.6 per cent to N39.9 billion, against N38.9 billion reported during the corresponding period in 2018.

Although, the firm Profit after Tax (PaT) down by 5.4 per cent to N31.7 billion, compared to N33.5 billion recorded in June 2018.

The Holdings in the first-half results, however, made Net-interest income of N146.7billion, down 2.0 per cent, as against N149.6 billion of the same period in 2018.

Checks by The Daily Times, also, revealed that FBN grew its non-interest income by 3.6 per cent to N63.6billion, while comparing to June 2018 figure of N61.3 billion.

But the financial statement showed that FBN recorded operating income of N210.3 billion, representing a decline of down 0.3 per cent y-o-y, when compared to N210.9 billion reported in June 2018.

The Holdings, declared impairment charge for credit losses of N22.1 billion, representing a drop of 58.1 per cent, against N52.8 billion, announced in June 2018, while its Operating Expenses grew by year-on-year by 24.3 per cent to N148.3billion, compared to N119.3billion reported during the same period last year.

Further checks, however, showed that the company 2019 half-year total assets increased by 1.8 per cent to N5.7 trillion, as against N5.6trillion stood at the close of its business activities for the year 2018.

Holdings grew its customer deposits by 2.8 per cent to N3.6trillion during the period under review, compared to N3.5 trillion stood in December last year, and also increased its Customer loans and advances (net) rose by 3.5 per cent to N1.74 trillion, against N1.68 trillion declared at the end of December 2018.

Commenting on the results, the Group Managing Director, UK Eke, said: “Despite the difficult operating environment, we remain resolute in delivering on our guidance across key metrics including our commitment towards a single-digit NPL ratio by the end of the year, as evidenced by the reduction in NPLs from the last quarter.

Essentially, Atlantic Energy – our largest NPL, was written off, translating into a decline in the NPL ratio from 25.9 per cent in December 2018 to 14.5 per cent as of June 2019, a step that brings us closer to our FY 2019 target and creates more headroom for quality asset growth.

This is paving the way for sustained improvement in asset quality and a further reduction in impairment charges that will allow us to take advantage of enhanced earnings opportunities when they arise.

“Furthermore, we have remained focused on deepening our transaction-led income and are uniquely positioning for stronger revenue growth and value creation.

“We are confident in the Group’s ability to deliver stronger results sustainably as we execute our strategy and unlock earnings potential from recent investments in innovation and digital transformation.

This will enhance our future earnings capacity and drive operational efficiencies that will enable the generation of superior returns to our shareholders”, he explained.