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FBN Holdings Grows Nine Months Profit After Tax to N46 Billion

Goddy Egene

FBN Holdings Plc thursday reported a 7.8 per cent growth in profit after tax (PAT) for the nine months ended September 30, 2017.

Details of the results showed that gross earnings rose by 5.2 per cent to N439.2 billion, from N417.4 billion in the corresponding period of 2016. Net interest income went up by 25.3 per cent to N254.3 billion from N202.9 billion, while non-interest income went down by 43.5 per cent from N131 billion in 2016 to N74 billion. Impairment charge for credit losses fell by 14.9 per cent from N114.7 billion in 2016 to N97.6 billion in 2017.

FBN Holdings posted profit before tax (PBT) of N55.4 billion, down marginally from N57.5 billion, while PAT rose by 7.8 per cent to N45.8 billion compared with N42.5 billion in the corresponding period of 2016.

Total assets went up by 2.7 per cent to N4.9 trillion, up from N4.7 trillion,, while customer deposits fell by 5.3 per cent to N3.0 trillion, from N3.1 trillion. Similarly, loans and advances to customers stood at N2.0 trillion, compared with N2.1 trillion.

Further analysis of performance ratio showed that post-tax return on average equity improved from 9.4 per cent in 2016 to 10.1 per cent in 2017. Net interest margin also improved from 7.5 per cent to 8.8 per cent.
Also, non-performing loan ratio stood at 20.1 per cent, compared with 24.9 per cent in 2016.

Speaking on the results, the Group Managing Director of FBN Holdings, Mr. UK Eke said: “FBNHoldings has again demonstrated its resilience in revenue generation with a 5.2 per cent year-on-year (y-o-y) growth in gross earnings to N439.2 billion following a y-o-y increase of 25.2 per cent in net interest income to N254.3 billion. The Group is progressing in building the right structures for sustainable growth through an improved credit culture and risk management; increased technologically driven operational efficiencies; and the introduction of revenue enhancing platforms.”

He explained that the Insurance group sustained its strong performance and they expect to see further growth from the retail, corporate and annuity businesses.

“Similarly, we continue to see strong growth trajectory in the Merchant Banking and Asset Management group. These businesses complement our commercial banking business in our aspiration to becoming the leading financial services institution in Middle Africa. We remain confident that the initiatives being implemented across our subsidiaries will further strengthen our business and ultimately reposition the Group for sustainable growth,” Eke said.