Business a.m.
First Bank of Nigeria Holdings Plc (FBN) has reported a significant surge in its profitability, as the company declared a profit before tax (PBT) of N238.53 billion for the first quarter of 2024. The revenue, which marks a 325.2 percent jump from the N56.1 billion reported during the same period in 2023, reflects the banking group’s sustained growth and financial health, positioning the company for continued success in the Nigerian financial sector.
The group’s unaudited Q1 2024 results, mirroring its strong performance in 2023, revealed a 315.8 percent surge in profit, up from N50.1bn to N208.1bn compared to the same period in 2023. Additionally, the group’s gross earnings reached N730.3 billion,rising 181.4 percent from N259.5 billion recorded in Q1 2023.
The significant rise in interest rates during Q1 2024, a measure implemented by the Central Bank of Nigeria (CBN) to rein in inflation, had a notable impact on First Bank of Nigeria Holdings Plc’s financial performance.
The Group’s Q1 2024 results reflected a 153.3 percent growth in interest income which hit N455bn compared to N179.6bn in Q1 2023. However, this was offset by a significant increase in interest expenses, which rose by 234.1 percent, reaching N226.42bn in the same quarter.
The effects of a persistently high inflation rate on the Nigerian economy were reflected in the group’s operating expenses, which rose from N111.2bn in Q1 2023 to N212.80bn in Q1 2024, a trend that can be attributed to the rising cost of operating in a high inflation environment.
FBN Holdings also reported a significant expansion in its balance sheet, with total assets reaching an N21.58 trillion in March 2024, marking a 27.4 percent growth from the N16.94 trillion reported in 2022.
The group’s customer loans and advances (Net) stood at an equally impressive N8.42 trillion as of March 2024, a 32.8 percent jump from N6.36 trillion recorded in the full financial year 2023.
A surge in customer deposits underscored FBN’s robust performance in the first quarter of 2024. The group’s customer deposits increased 24.4 percent to N13.27 trillion by March 2024, up from N10.66trn reported in the previous financial year.
Nnamdi Okonkwo, the group managing director of FBN Holdings, expressed confidence in the group’s ability to meet its goals and deliver long-term value to its shareholders.
Okonkwo noted that the group’s commitment to maximising operational efficiencies and optimising earnings capacity has driven its impressive financial performance in Q1 2024, setting the stage for continued success in the year ahead.
Okonkwo pointed to an impressive 181.4 percent surge in gross earnings to N730.3 billion, a remarkable 325.2 percent increase in profit before tax to N238.5bn, and a significant 27.4 percent growth in total assets to N21.6trn over the three-month period, all of which were driven by strong revenue growth and enhanced operational efficiency.
Okonkwo stated further that the group remains steadfastly committed to driving growth and value through strategic initiatives that will propel the Group to greater heights of profitability, performance, and stakeholder satisfaction.
In addition to the group’s impressive financial performance, FBNHoldings’ shareholding structure revealed an interesting development in the holdings of Femi Otedola, the group chairman.
As of March 2024, Otedola’s direct and indirect stake in the group had grown to 2,517,282,140, representing an increase of more than 500 million shares from the 1,999,342,376 shares he held in March 2023.
