FBN Holdings reports 31.4 increase in profit to N60bn in 2018

…Proposes dividend of N0.26 for Shareholders

Motolani Oseni

FBN Holdings Plc has announced its audited financial statement for the year ended 31 December, 2018 with profit after tax that rose by 31.4 per cent to N59.7 billion in 2018 from N45.5 billion reported in 2017.

The management of the Holding company, however, proposed a dividend of N0.26 for 2018 financial year as against N0.25 dividend paid to shareholders in the 2017 financial year.

The group, also, recorded a 19.7 per cent gains in profit before tax to N65.3 billion from N54.5 billion reported in 2017, bringing earnings per share to N1.65, 43.5 per cent increase against N1.15 declared in the previous year.

The legacy brand posted a total sum of N583.5 billion in gross earnings in 2018 from N595.4 billion reported in 2017, but the group’s 43 per cent decline in Impairment charges to N86.9 billion in 2018 delivered a whopping hike in profit after tax in the year under review.

The group, also, paid N5.5 billion Income tax expense for the year as against N9billion in 2017.

Even as the growth in profitability, others were driven by a steady increase in total assets for last year.

For instance, the Holding company increased its total assets by 6.3 per cent to N5.6 trillion in 2018, compared to N5.2 trillion recorded in 2017, which was driven by 33.3 per cent increase in investment securities to N1.7 trillion as against N1.2 trillion in the preceding year.

Also, total customer deposits grew by 10.9per cent to N3.49 trillion in 2018 from N3.14 trillion reported in 2017. It is, however, worthy of note that the growth in deposits was driven by a 21.8per cent and 15.9per cent increase in current and savings accounts to N915.3 billion as against N751.3 billion in 2017 and N1.2 trillion in 2018 (2017: N1.0 trillion) respectively.

Commenting on the results, UK Eke, the Group Managing Director said: “Over the course of the 2017 – 2019 strategic cycle, the priority for management has been to strengthen the various businesses across the Group and position for sustainable growth over the long term.

Our three-pronged approach has primarily been to drive long-term revenue generation capabilities, overhaul risk management processes and drive efficiency across our businesses.

“We have seen significant results in our revenue diversification aspiration, with improving digital banking offerings which have enhanced our non-interest income from the commercial banking group.

Similarly, there has been steady growth in contribution to the revenue pool of the Group from the insurance business and the merchant banking business, helping to further, reinforce the revenue generation capacity of the Group”, he said.