FBN Holdings Plc (FBNH) released the 2020 full year financials showing a 10.50% decline in interest income and an 8.19% decline in net interest income. Notably, FBNH generated N386.58bn interest income compared to the N431.93bn generated in 2019.
This was followed by a 14.74% decrease in interest expense leading to a drop in the net interest income to N256.69bn.
Impairment Charges Declined Despite COVID-19 Pressure on Loan Quality
Despite the pressure on credit quality as a result of COVID-19, FBNH loan impairment charges declined by 9.93% from N51.09bn to N50.88bn. This is an improvement compared to the impairment surge in the 3rd quarter of 2020
Fees and Commission Buoyed Earnings
FBNH net fees and commission income advanced by 24.56% from N82.90bn to N103.25 in the current period majorly driven by growth in letters of credit, commission, electronic banking fees and account maintenance charges.
Consequently, total operating income advanced marginally by 3.80% with profit before tax advancing from N75.19bn to N78.05. However, Profit after tax declined by 0.17% on the back of higher tax expense. In summary, Earnings per share advanced by 3.98% from N1.76 to N1.83