FBN Holdings Plc and Sterling Bank Plc have announced their results for the half year (H1) ended June 30, 2018, showing higher profits.
Sterling Bank Plc recorded a higher profit growth. A breakdown of the results indicated that the bank’s profit after tax (PAT) grew by 63 per cent.
Specifically, Sterling Bank Plc recorded gross earnings of N77.637 billion, up 34 per cent from N57.1017 billion posted in the corresponding period of 2017. Net interest income (NII) fell from N27.018 billion to N25.547 billion, while fees and commission income rose from N5.902 billion to N6.896 billion. Credit loss reduced from N4.081 billion to N1.844 billion, while total expenses increased from N25.676 billion to N32.388 billion.
Despite the increase in expenses, Sterling Bank Plc ended the H1 with profit before tax of N32.388 billion, up from N4.334 billion to N6.388 billion showing an increase of 48 per cent. PAT grew faster by 63 per cent from N3.802 billion to N6.214 billion in 2018.
On the other hand, FBN Holdings Plc profit went up by 13.7 per cent. FBN Holdings Plc posted gross earnings of N293.3 billion in 2018, up from N288.8 billion. NII fell from N164.1 billion to N149.6 billion, while non-interest income rose from N50.5 billion to N61.3 billion. Impairment charges fell by 15.4 per cent from N62.4 billion to N52.8 billion.
Consequently, FBN Holdings Plc closed the period with a PBT of N38.9 billion, up 9.3 per cent from N35.6 billion. PAT stood at N33.5 billion, up 13.6 per cent from N29.5 billion in the corresponding period of 2017.
A further analysis of the FBN Holdings performance showed that non-performing loan(NPL) improved from 22 per cent to 20 per cent, while customers’ deposits increased from N3.1 trillion as at December 2017 to N3.3 trillion in June 2018. Loans and advances to customers fell from N2.0 trillion to N1/9 trillion.
Commenting on the results, the Group Managing Director, FBN Holdings, UK Eke said, “FBN Holdings continues to make steady progress towards delivering on its strategic targets. This has been demonstrated with a 13.7% y-o-y increase in profit after tax, 21.4 per cent year-on-year (y-on-y) growth in non-interest and 15.4 per cent y-o-y decline in impairment charge. Clearly, the Group is on its way to delivering its promises on asset quality, enhancing revenue generating capacity through non-interest income and driving further efficiencies.
“As we ramp up initiatives to grow interest income, we remain focused on the implementation of key initiatives across our subsidiaries and further strengthen our businesses towards delivering sustainable performance as well as optimising returns to our shareholders.”