FBN Holdings records gross earnings of N627bn

—— Proposes 38k dividend per share

COMFORT EKELEME

FBN Holdings Plc said it recorded gross earnings of ₦627 billion, up 6.7 per cent year-on-year against the ₦587.4 billion recorded in 2018.

The bank has also proposed dividend per share of ₦0.38

In its audited results for the financial year ended 31 December 2019, the bank recorded net-interest income of ₦290.2 billion, up 1.7per cent year on year, against  ₦285.3 billion recorded in 2018 and Non-interest income of ₦159.2 billion, up 20.6 per cent, against ₦132.0 billion in 2018.

Also, the bank’s operating income rose to ₦449.3 billion, up by 7.7per cent, impairment charges of ₦51.1 billion was down by 41.5per cent, while operating expenses stood at ₦314.7 billion, up 18.3per cent against the ₦266.0 billion recorded in 2018.

Also, the Profit Before Tax of the bank rose to ₦83.6 billion, up 30.9per cent while it was ₦63.9 billion in December 2018 and Profit after tax ₦73.7 billion, up 26.5per cent and  ₦58.2 billion in 2018.

The bank’s total assets also rose from N5.6 trillion in 2018 to ₦6.2 trillion in 2019. Customer deposits of ₦4.0 trillion was up by 15.3per cent as against the ₦3.5 trillion recorded in 2019.

Commenting on the results, Group Managing Director of the bank, UK Eke, said “We are happy to close the 2019 financial year on positive notes across a number of key metrics giving the Group a clean-slate to accelerate its growth plan as we conclude the 3-year Strategic Planning Cycle which ran from 2017-2019 and commence a new cycle which coincide with the start of a new decade.  In line with our promise to the market, FBNHoldings closed the year with a 30.9per cent year on year increase in profit before tax and delivered its target of a single digit NPL which closed at less than 10per cent

“Similarly, we successfully overhauled our risk management architecture, strengthened our processes by leveraging technology and institutionalizing a strong credit culture across the lending entities. These deliberate steps have seen the NPL ratio of our vintage book remained below 1per cent. In the same vein, we have made significant improvement in our revenue generation capacity with non-interest income benefiting from our market leadership in electronic banking channels.

“It is also noteworthy to highlight that our investments aimed at improving operational efficiencies and enhancing revenue accretion have resulted in higher cost-to-income ratio. The benefits of these investments will be realised in subsequent periods.

“The new SPP cycle is focused on strengthening and positioning the various businesses across the Group for sustainable growth over the long-term. As a Group, we are committed to transforming our financial performance to tangible results for the benefit of all stakeholders especially our shareholders through enhanced returns and dividend payment. As a testament of the resolution of the legacy issues and an indication of the future, FirstBank re-commenced dividend upstream to the holding company.

In conclusion, I would like to emphasize that 2020 promises to be a challenging year. In addition to the growing list of economic challenges both at the global level and locally, the world woke-up to the outbreak of the deadly COVID-19 pandemic which has threatened to bring the global economy to a complete halt.

“Whilst these are early days in the assessment of the likely economic devastation as a result of this virus, there is a sense of unanimity that this event will result in an unprecedented ruin both in terms of global economic growth and disruption to the global supply chain. As an institution, we are working hard to minimize its impact on our businesses by activating our business continuity plans thereby preserving the well-being of our employees and other stakeholders,” he said.

According to him, the Group remains focused on enhancing its non-interest revenue from further growth in transaction volumes on digital channels and optimization of the robust technology platforms to better serve its customers

The FirstBank boss further noted that the bank’s operating expenses increased by 18.3per cent year on year to ₦314.7 billion, while it was ₦266.0 billion in 2018 on the back of one-off strategic expenses and projects aimed at improving operational efficiencies and enhancing revenue creative capabilities.

Staff related costs stood at 31.6 per cent within the period under review, regulatory cost 12.3per cent and maintenance cost 9.0per cent, jointly account for about half of operating expenses.

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