FBN Holding posts N294bn half-year gross earnings

FBN Holdings Plc has posted N294.2 billion gross earnings for the half-year ended June 30, 2019. The figure represents 0.3 percent year-on-year rise.

Its net-interest income of stood at N146.7 billion, down two percent from N149.6 billion in June 2018.

“Non-interest income of N63.6 billion, up 3.6 percent year-on-year (as against N61.3 billion in June 2018; Operating income of N210.3 billion was achieved, down 0.3 percent while impairment charge for credit losses of N22.1 billion, down 58.1 percent.

Also, operating expenses stood at N148.3 billion, up 24.3 percent; Profit before tax of N39.9 billion, up 2.6 percent and Profit after tax N31.7 billion, down 5.4 percent,” it said.

Statement of financial position also showed that total assets stood at N5.7 trillion, up 1.8 percent year-to-date, customer deposits of N3.6 trillion, up 2.8 percent while customer loans and advances (net) of N1.74 trillion, up 3.5 percent.

Its non performance loans ratio stood at 14.5 percent among other performance milestones.

UK Eke, its 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 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 percent in December 2018 to 14.5 per cent as at June 2019, a step that brings us closer to our fiscal year 2019 target and creates more headroom for quality asset growth.”

“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.”

Adesola Adeduntan, chief executive officer of FirstBank and Subsidiaries, said: “In line with our commitment to address the legacy asset quality challenges, exposure to Atlantic Energy was written off in the quarter.”