FBN Holdings Records 7.9% Growth In Earnings, Profit Down 12%

Onyedimmakachukwu Business, Finance/Money

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VENTURES AFRICA – FBN Holdings Plc, the investment arm of First Bank of Nigeria, has reported gross earnings of N212 billion ($1.3 billion) for the first half year ended June 30, 2014, 7.9 percent higher than the N196.4 ($1.22 billion) of the corresponding period of 2013. However, the company’s Profit before tax fell 12 percent to N48.3 billion ($300 million) from N54.8 billion ($340 million) in 2013.
FBN holdings had in April announced an 8.8 percent rise in profit for the fiscal year 2013, from N70.6 billion ($430 million) in 2012 to 76.8 billion ($480 million). The company’s total assets has since grown to N4 trillion ($2.48 billion), 3.4 percent higher than the N3.9 trillion ($2.48 billion) it recorded in December 2013, but customer deposits fell 5.9 percent to N2.8 trillion ($1.74 billion) from N2.9 trillion ($1.8 billion). Customer loans and advances upped 4 percent to N1.8 trillion (1.11 billion) from N1.7 trillion ($1 billion) recorded in December 2013.
In the first half of this year FBN recorded an interest income of N115.2 billion ($715 million), 2.2 percent higher than the N112.7 ($700 million) billion posted in June 30, 2013 as operating income upped 1.5 percent from 155.5 billion to N157.8 billion ($980 million). However, operating expenses jumped 14.3 percent to N102.9 billion ($639 million) from N90 billion ($559 million) while
non-interest income remained flat at N43.2 billion ($268.4 million), a marginal 0.3 per cent increase on the N43.3 billion ($269 million) recorded the same period last year.
Impairment charge for credit losses fell 32.9 per cent to N6.7 billion ($ 41.6 million) from N9.9 billion ($61.5 million) recorded in June 2013.
CEO of FBN Holdings, Bello Maccido described the result as indicative of the company’s delivery of a resilient performance in view of the tough operating environment and regulatory headwinds.
“We continue to implement measures to ensure improved performance with a review of the current business model of our Commercial Banking business group and the Investment Banking and Asset Management business in the coming period. This is geared towards harnessing our competitive advantage, delivering excellent service and consolidating our position as a well-diversified and leading financial services Group,” he said.
He further stated the company’s confidence in the future, building further traction from our non-banking subsidiaries, notably the Investment Banking and Asset Management as well as the Insurance business group. “FBN Holdings is on course to deliver improved performance over 2013 year end PBT of N91.3 billion ($565.4 million) and we are focused on ensuring our sustained leadership position in the industry”, he added.