Fbn Holdings’ Profit Increases By 48 Percent As Assets Increase To N9.5 Trillion.

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Fbn Holdings' Profit Increases By 48 Percent As Assets Increase To N9.5 Trillion.
Fbn Holdings' Profit Increases By 48 Percent As Assets Increase To N9.5 Trillion.

FBN Holdings Plc, a financial conglomerate, reported a 48% profit for the half-year period ended June 30, 2022, as its total assets increased by 6.6% to N9.5 trillion.

FBN Holdings reported a 22.4 percent increase in gross earnings to N359.2 billion in its half-year financials released over the weekend, compared to N293.4 billion in the same period last year. Interest income increased by 40.6 percent to N226.4 billion from N161 billion in the same period last year.

 

With the holding company’s impairment charges for losses down 18.7 percent to N21.7 billion, FBN Holdings profit for the year increased to N56.5 billion, up from N38.1 billion in the first half of 2021. The financial conglomerate’s nonperforming loans had dropped to around the industry average of 5.4 percent, down from 7.2 percent last year.

 

The cost of funds increased slightly from 1.8 percent in the comparable period of 2021 to 1.9 percent as the cost to income ratio increased to 68% from 67.9 percent in the half-year period of 2021. However, the cost of risk had fallen to 1.3 percent in the first half of 2022, down from 2.2 percent in the same period in 2021.

 

Net loans and advances to customers increased by 17.3% from N2.88 trillion at the end of the 2021 half year to NN3.38 trillion at the end of the 2022 half year, as total assets increased to N9.52 trillion.

 

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The cost of funds increased slightly from 1.8 percent in the comparable period of 2021 to 1.9 percent as the cost to income ratio increased to 68 percent from 67.9 percent in the half-year period of 2021. However, the cost of risk had fallen to 1.3 percent in the first half of 2022, down from 2.2 percent in the same period in 2021.

 

Net loans and advances to customers increased by 17.3 percent from N2.88 trillion at the end of the 2021 half year to NN3.38 trillion at the end of the 2022 half year, as total assets increased to N9.52 trillion.

 

“We continue to make progress in reducing our non-performing loan ratio, which now stands at 5.4% at the end of H1, and we are on track to bring it down to the regulatory limit of 5% by the end of FY2022. As we enter the second half of 2022, I am confident that the Commercial Banking Group will maintain its current momentum of generating impressive returns from the quality risk assets portfolio that it has already built, while also optimizing its balance sheet in light of changing macroeconomic conditions.

 

 

” Furthermore, we will strengthen our dominant digital banking capabilities in order to provide best-in-class services to all segments of our customers across all of our footprints in Sub-Saharan Africa and beyond.”