FBNHoldings post N805bn earnings in 2022

FBN Holdings Plc has announced its audited results for the financial year ended December 31, 2022, showing gross earnings growing by 6.3per cent to ?805.1 billion as against the N757.3 billion recorded in Dec 2021.

According to the Group, this was driven by strong growth in interest income (+49.6per cent year-on year (y-o-y) to N551.9 billion (Dec 2021: N369.0 billion).

The increase in interest income benefited primarily from 31.5per cent y-o-y growth in loans to customers.

Also, this was further supported by the higher interest rate environment, which positively impacted yields.

On the other hand, interest expense growth of 34.0per cent y-o-y to N188.7 billion (Dec 2021: N140.8 billion), was contained following strategic growth in deposit mobilisation and funding at optimised rates.

As a result, net interest income improved impressively by 59.2per cent y-o-y to N363.2 billion (Dec 2021: N228.2 billion).

Group Managing Director, Nnamdi Okonkwo while commenting on the results stated said, “FBNHoldings continues to make good progress in transforming the enterprise despite the uncertain and complex operating environment, leveraging the execution capabilities of top talents across the Group to generate sustainable value for all our stakeholders.

“In 2022, we grew net interest income by 59.2per cent y-o-y to N363.2 billion which ultimately delivered a robust profit before tax of to N157.7 billion from the ordinary business of the Group.

“As a reaffirmation of our commitment to drive revenue and profitability leveraging on the strengthened balance sheet, loans and advances grew 31.5per cent y-o-y to ?3.8 trillion and total asset 18.4per cent y-o-y to ?10.6 trillion, while our investments in technology and strong transactional and digital banking capabilities continue to support non-interest income generation.

“In line with our strategic priorities, we are driving further revenue and profitability growth through a carefully evaluated delivery model of service offerings, with a focus on owning the customer journey while deepening our unique value proposition across markets.

“We are re-imagining our digital client acquisition and product offerings and accelerating next generation capabilities to exceed current requirements of existing and potential customers. In addition, we remain committed to enhancing our operational efficiency with a focus on optimising processes through technology and digital platform delivery while ensuring its availability and stability.

“Finally, we see endless possibilities ahead, as we keep defining frontiers of financial services, optimising the depth and breadth of our unique portfolio of businesses to unlock the full potential of FBNH,” he said.

Speaking further, Okonkwo maintained that the Group remain focused on optimising non-interest revenue across the business.

 “In 2022, we were faced with varying macro-economic challenges including high inflation and currency depreciation, the effect of which contributed to the 9.0per cent y-o-y increase in operating expenses to ?364.1 billion (Dec 2021: ?334.2 billion).

“Despite these challenges, the Group maintained operating expenses growth well below the year-end inflation rate of 21.3per cent. Despite the macro pressures, operating income remains robust at N590.4 billion (Dec 2021: ?592.6 billion), resulting in cost to income ratio of 61.7per cent. Going forward, we remain focused on further improving efficiency,” he added.

Commenting on the results, Dr. Adesola Adeduntan, Chief Executive Officer of FirstBank (Commercial Banking Group) said: “The Commercial Banking Group continued the strong performance trajectory from the 2021 results posting another set of robust results for FY 2022 with gross earnings up 4.4per cent year-on-year to N748.6 billion and profit before tax of N147 billion, recording a growth of 12.4per cent year-on-year.

“Total assets grew by 18.1per cent year-on-year to N10.1 trillion despite the unprecedented macro-economic challenges and dynamic regulatory environment. The impressive growth in PBT was driven by a 58.3per cent year-on-year growth in interest income from N255.7 billion to N357.2 billion arising from business growth and improved optimisation of our balance sheet. This is in keeping with our Quantum Profitability Leap agenda.

“As a Group, we continue to reap the benefits of our investments in technology, transaction and digital banking capabilities which enable us to offer better customer experiences to our numerous clients. This was further reflected in the impressive 22.4per cent and 28.5per cent year-on-year growth in customers’ deposits and loans respectively, demonstrating customers’ confidence in our service delivery and value proposition.

“In the face of the increasingly competitive landscape, we are continually looking into the future to build an enduring and sustainable institution. We remain focused on the disciplined execution of our strategic initiatives aimed at positioning the Group for improved profitability, facilitating performance excellence, and exceeding the expectations of all our stakeholders,” he said.