FBN Holdings Plc has announced its unaudited results for the nine months ended September 30, 2017 with a profit after tax of N45.8 billion, up 7.8 per cent from N42.5 billion in 2016.
The Group also recorded a profit before tax of N55.4 billion, down 3.5per cent from N57..5 billion the previous year.
The gross earnings grew by 5.2 per cent year-on-year (y-o-y )to N439.2 billion from N417.3 billion in 2016 driven largely by a 27.8 per cent y-o-y growth in interest income. This was partly offset by a 43.5 per cent y-o-y decline in non-interest income. Interest income and non-interest income contributed 81.3 per cent and 18.7 per cent respectively. The Group explained that the growth in interest income to gross earnings, was driven by increased investment in securities.
Further analysis of the result showed that net impairment charge on credit losses declined by 14.9 per cent to N97.6 billion from N114.7 billion in the corresponding period of 2016. Consequently, cost of risk decreased to 5.6 per cent while the non-performing loans ratio declined to 20.1 per cent. “We are on track to meet our 2017 NPL ratio guidance, in line with our long-term strategic outlook”, FBN said.
Commenting on the results, UK Eke, the Group Managing Director said: “FBNHoldings has again demonstrated its resilience in revenue generation with a 5.2 per cent y-o-y growth in gross earnings to N439.2 billion following a y-o-y increase of 25.2% in net interest income to N254.3 billion. The Group is progressing in building the right structures for sustainable growth through an improved credit culture and risk management; increased technologically driven operational efficiencies; and the introduction of revenue enhancing platforms. The Insurance group sustained its strong performance and we expect to see further growth from the retail, corporate and annuity businesses. Similarly, we continue to see strong growth trajectory in the Merchant Banking and Asset Management group. These businesses complement our commercial banking business in our aspiration to becoming the leading financial services institution in Middle Africa.”
We remain confident that the initiatives being implemented across our subsidiaries will further strengthen our business and ultimately reposition the Group for sustainable growth”
However, shareholders’ funds closed at N631.1 billion, up 8.3 per cent y-t-d (Dec 2016: N582.6 billion), benefitting largely from an increase in: retained earnings (up 21.4 per cent y-t-d to N196.2 billion (Dec 2016: N161.6 billion).