FBN Holdings Plc Reports N56.6bn PAT in Q2 2022 Results,(Share Price:N11.00k)

Key Highlights

Interest Income grew by 40.6% from N161.02bn to N226.35bn.
Profit before tax stood at N65.72bn
Profit after tax stood at N56.6bn
Share Price Currently Stands at N11.00k

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Income Statement

Nnamdi Okonkwo, the Group Managing Director commented:

“FBNHoldings continues to demonstrate resilient performance despite the challenging operating environment with an impressive improvement in revenue and profitability. For the half year 2022, gross earnings and profit before tax grew by 22% y-o-y and 45% y-o-y to N359.2 billion and N65.7 billion respectively. Furthermore, we continue to see good progress across our performance metrics, which remain in line with our focus on driving sustainable growth.

The Group remains committed in its transformation drive, which has resulted in stronger balance sheet and better asset quality with non-performing loans closing at 5.4% at H1 2022. Similarly, risk management capability remains robust across the Group supporting the drive for enhanced earnings for sustainable capital accretion. During the period, cost to income ratio remained flat y-o-y despite the inflationary and currency pressure, as we continue to focus on optimising overall efficiency.

Our strategic intent remains unchanged in optimising opportunities that drive growth in revenue, profitability, capital accretion and overall operational efficiency that delivers sustainable value to our stakeholders.”

Business Groups

Commercial Banking

Gross earnings of ₦338.5 billion, up 22.6% y-o-y (Jun 2021: ₦276.1 billion*)
Net interest income of ₦152.9 billion, up 49.3% y-o-y (Jun 2021: ₦102.4 billion)
Non-interest income of ₦108.8 billion, down 2.4% y-o-y (Jun 2021: ₦111.5 billion*)
Operating expenses of ₦178.8 billion, up 23.1% y-o-y (Jun 2021: ₦145.3 billion)
Profit before tax of ₦60.0 billion, up 40.0% y-o-y (Jun 2021: ₦42.9 billion)
Profit after tax of ₦53.3 billion, up 42.3% y-o-y (Jun 2021: ₦37.4 billion)
Total assets of ₦9.1 trillion, up 6.7% y-t-d (Dec 2021: ₦8.5 trillion)
Customers’ loans and advances (net) of ₦3.3 trillion, up 17.0% y-t-d (Dec 2021: ₦2.8 trillion)
Customers’ deposits of ₦6.1 trillion, up 8.4% y-t-d (Dec 2021: ₦5.6 trillion)

Commenting on the results, Dr. Adesola Adeduntan, Chief Executive Officer of First Bank of Nigeria Limited (Commercial Banking Group) stated that:

“Amidst a challenging operating and dynamic regulatory environment in H1 2022, the Commercial Banking Group remained focused on executing key initiatives to position the Group for improved profitability in FY2022. Our half-year results further reinforced our drive towards our ‘Quantum Profitability Leap’ agenda. Our gross earnings are up 22.6% y-o-y to ₦338.5 billion and net interest income up 49.3 % y-o-y to ₦152.9 billion respectively. On the back of the impressive growth recorded in our top line, our profit before tax recorded a strong growth of 40.0% y-o-y to ₦60.0 billion, whilst profit after tax also grew by 42.3% y-o-y to ₦53.3 billion as the Bank continues to reap the dividends of the successful restructuring of our balance sheet and revamping of our risk management architecture. We continue to record progress in driving down our non-performing loan ratio which now stands at 5.4% at the end of H1 and we are on target to bring it within regulatory limit of 5% by end of FY2022.

As we go into the second half of 2022, I am confident that the Commercial Banking Group will sustain the current momentum of generating impressive returns from the quality risk assets portfolio already created, whilst optimising its balance sheet given changing macro-economic conditions. Furthermore, we will continue to strengthen our dominant digital banking capabilities in providing best-in-class services to all segments of our customers across all our footprints in sub-Sahara Africa and beyond.”

Merchant Banking & Asset Management (MBAM) / FBNQuest