FBN Holdings Grows Q1 Profit After Tax by 62% to N26 Billion

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Goddy Egene

FBN Holdings Plc yesterday announced an improved results for the first quarter ended March 31, 2020.

The unaudited results showed a jump of 62 per cent in profit after tax in Q1 of 2020, compared to the corresponding period in 2019. Details of the performance showed that FBN Holdings posted net interest income of N60.253 billion, compared with N71.662 billion. Fee and commission income rose from N23 billion to N25.8 billion.

Impairment charges fell from N13.847 billion in 2019, to N9.7 billion in the period under review, making the group to end the quarter with a profit before tax of N28.68 billion as against N17.764 billion. PAT grew by 62 per cent to N25.7 billion, from N15.8 billion.

The improved performance was in line with the assurance given by the Group Chief Executive Officer of FBN Holdings Plc, Mr. UK Eke when the company announced its 2019 full year results.

Eke had said 2020 would be a challenging year, noting however, that FBN Holdings was working hard to minimise the impact on its businesses by activating its business continuity plans thereby preserving the well-being of its employees and other stakeholders.

According to him, the bank successfully overhauled our risk management architecture, strengthened its processes by leveraging technology and institutionalising a strong credit culture across the lending entities.

“These deliberate steps have seen the non-performing loans(NPL) ratio of our vintage book remained below one per cent. In the same vein, we have made significant improvement in our revenue generation capacity with non-interest income benefiting from our market leadership in electronic banking channels. It is also noteworthy to highlight that our investments aimed at improving operational efficiencies and enhancing revenue accretion have resulted in higher cost-to-income ratio. The benefits of these investments will be realised in subsequent periods,” he said.

Also, the Chief Executive Officer of FirstBank, Dr. Adesola Adeduntan had said as they commenced the execution of a new 2020 – 2022 strategic plan and in line with the realities of providing innovative customer service excellence and generating expected shareholder returns, they reviewed their vision to be Africa’s bank of First Choice to align with their ambition to optimise returns through customer led innovation and discipline execution.

“Within this context, aggressive customer acquisition and excellence across products/channels/geographies is a priority to enhance revenue streams while we accelerate the drive to reduce overall cost to serve, improve employee productivity, enhance customer experience and maximise operational efficiency,” he said.

Well received, thanks.Very interesting!Received, thank you.