FBN Holdings Plc yesterday reported its unaudited results for the half year ended June 30, 2017, showing a profit after tax of N29.5 billion, a decline of 17.8 per cent posted in the corresponding period of 2016.
The financial conglomerate posted gross earnings of N288.8 billion, up 7.8 per cent from N267 billion in 2016. Net interest income rose by 30.2 per cent from N126 billion to N164 billion, while impairment charges fell by 2.6 per cent from N69.9 billion to N62.4 billion.
However, profit before tax fell by 22.4 per cent to N45.9 billion from N35.6 billion, while PAT stood at N29.5 billion, as against N35.9billon in 2016.
A further analysis of the results showed that total assets of N4.9 trillion, grew by 3.0 per cent to hit N4.9 trillion, from N4.7 trillion as at December 31, 2016.
Customer deposits was N3.0 trillion, down 3.5 per cent as against N3.1 trillion in December 31, 2016, just as customer loans and advances ended at N2.0 trillion, down 4.1 per cent from N2.1 trillion as at December.
In terms key ratios, net-interest margin improved to 8.5 per cent in 2017, from 7.2 per cent in 2016. Non-performing ration stood at 22 per cent, an improvement on the 22.8 per cent in June 2016 and 24.4 per cent in December 2016.
Commenting on the results, the Group Managing Director, FBN Holdings, Mr. Urum Kalu said: â€œFBN Holdings has again demonstrated its strong revenue generating capacity in the current economic environment reporting gross earnings of N288.8 billion – up 7.8 per cent.
In line with our strategic focus on improving asset quality; cost optimisation; and, enhancing revenue generation, we are beginning to see improvement across a number of metrics associated with these initiatives.â€
He added: â€œOur focus on enhancing the quality of our loan book is reflected in a decline in non-performing loans, a reduction in our impairment charge following improvement in the asset quality outlook, and we will continue to prioritise this area through the rest of this year. Similarly, consistent improvement in the efficiency ratio is testament to the efficacy of our cost optimisation initiatives, though these results have been partly offset by the currency devaluation and high inflationary environment.
Overall, we have seen strong growth trajectory in our Merchant Banking & Asset Management and the Insurance Group. These businesses complement our Commercial Banking franchise and represent new frontiers for our Group, firmly supporting our aspiration of becoming a leading financial services institution in Middle Africa. We remain committed to maximising returns to our shareholders as well as creating sustainable value.â€