FBN Holdings Plc. (“FBNH” or “FBNHoldings” or the “Group”) yesterday announces its unaudited results for the six months ended 30 June 2019.
The parent company of FirstBank Nigeria Limited, yesterday, said it recorded gross earnings of N294.2 billion for the six months ending June 30, 2019 (H1’19).
This represents 0.3 percent growth when compared with the N293.3 billion recorded as gross earnings in the corresponding period of 2018 (H1’18).
In the first half of 2019, the interest income was N221.8 billion against N225.4 billion, while the interest expense was N75.1 billion in H1 2019 versus N75.8 billion in H1 2018, leaving the net interest income at N146.7 billion as at June 30, 2019, compared with N149.6 billion as at June 30, 2018.
The results also showed that the company recorded profit before tax of N39.9 billion in H1’19, up by 2.6 percent from N38.9 billion in H1’18. Profit after tax however dropped by 5.4 percent to N31.7 billion in H1’19 from N33.5 billion in H1’18.
According to the results, the net gains on investment securities reduced to N3.8 billion from N5.1 billion, while the net gains on foreign exchange decreased to N4.7 billion from N12.9 billion, but the other operating income rising to N1.7 billion from N1.4 billion.
The company recorded N49.5 billion for fee and commission income in H1 2019 in contrast to N41.7 billion, while personnel expenses gulped N48.4 billion in the first six months of this year against N45.1 billion in the first six months of last year, with operating expenses taking away N86.7 billion from the company’s purse versus N64.6 billion in H1 2018.
Commenting on the results, UK Eke, MFR, the Group Managing Director said:
“Despite the difficult operating environment, we remain resolute in delivering on our guidance across key metrics including our commitment towards a single-digit NPL ratio by the end of the year, as evidenced by the reduction in NPLs from the last quarter.
Essentially, Atlantic Energy – our largest NPL, was written off, translating into a decline in the NPL ratio from 25.9% in December 2018 to 14.5% as at June 2019, a step that brings us closer to our FY 2019 target and creates more headroom for quality asset growth. This is paving the way for sustained improvement in asset quality and a further reduction in impairment charges that will allow us to take advantage of enhanced earnings opportunities when they arise. Furthermore, we have remained focused on deepening our transaction-led income and are uniquely positioning for stronger revenue growth and value creation.
We are confident in the Group’s ability to deliver stronger results sustainably as we execute our strategy and unlock earnings potential from recent investments in innovation and digital transformation. This will enhance our future earnings capacity and drive operational efficiencies that will enable the generation of superior returns to our shareholders.”
Notable Developments
- Atlantic Energy fully written off, creating significant headroom for increased business opportunities and enhanced earnings
- FirstBank exercised its option to call the US$450 million 8.0% Subordinated notes due in 2021, bringing total prepayments to US750 million in the last 12 months
- Firstmonie Agent banking network grown to over 27,000, deepening retail franchise and banking penetration
- FirstBank processed about ₦1.1 trillion transactions through its Firstmonie Agents and ₦1.2 trillion transactions through USSD banking year to date, demonstrating strong digital leadership footprint
- FirstBank upgrades core banking application to enhance customer service excellence across all banking channels
