FBNH Declares N49.5bn PAT in Q2 2020 Results, (SP:N5.00k)


Wednesday, July 29, 2020 / 7:56 PM / By NSE / Header Image Credit: Invest Advocate/Ecographics

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FBN Holdings Plc released its Q2 2020 Unaudited results for the period ended June 30th, 2020.

Key Highlights

  • Gross Earnings grew by 5.7% to N296bn from N280bn in the previous quarter.

  • Profit before tax grew by 14% to N41.4bn.

  • Profit after tax grew by 56% to N49.5bn.

  • Net Assets grew by 6.5% from N661bn to N704bn.

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FBN Holdings Plc. ("FBNH" or "FBNHoldings" or the "Group") today announces its unaudited results for the six months ended June 30, 2020

Income Statement                                                         

  • Gross earnings of N296.4 billion, up 5.8% year-on-year (y-o-y) (Jun 2019: N280.3 billion)
  • Net-interest income of N131.3 billion, down 7.4% y-o-y (Jun 2019: N141.7 billion)
  • Non-interest income of N80.1 billion, up 46.8% y-o-y (Jun 2019: N54.6 billion)
  • Operating income of N211.4 billion, up 7.7% y-o-y (Jun 2019: N196.3 billion)
  • Impairment charge for credit losses of N30.7 billion, up 38.6% y-o-y (Jun 2019: N22.1 billion)
  • Operating expenses of N139.2 billion, up 0.9% y-o-y (Jun 2019: N137.9 billion)
  • Profit before tax of N41.4 billion, up 14.3% y-o-y (Jun 2019: N36.2 billion)
  • Profit after tax of N49.5 billion, up 56.3% y-o-y (Jun 2019: N31.6 billion)

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Statement of Financial Position

  • Total assets of N7.1 trillion, up 14.9% year-to-date (y-t-d) (Dec 2019: N6.2 trillion)
  • Customer deposits of N4.4 trillion, up 8.8% y-t-d (Dec 2019: N4.0 trillion)
  • Customer loans and advances (net) of N2.0 trillion, up 7.7% y-t-d (Dec 2019: N1.9 trillion)

Key Ratios

  • Post-tax return on average equity 14.5% (Jun 2019: 11.6%)
  • Post-tax return on average assets 1.5% (Jun 2019: 1.1%)
  • Net-interest margin 6.8% (Jun 2019: 7.5%)
  • Cost to income ratio 65.8% (Jun 2019: 70.3%1)
  • NPL ratio 8.8% (Dec 2019: 9.9%)
  • 16.5% Basel 2 Capital Adequacy Ratio (FirstBank Nigeria: Dec 2019: 15.5%)
  • 17.2% Basel 2 CAR (FBNQuest Merchant Bank) (Dec 2019: 17.1%)

Commenting on the results, UK Eke, the Group Managing Director of FBNHoldings said: 

"The H1 2020 financial results are impressive and reconfirm our consistent focus on enhanced shareholder value. Despite the difficult operating environment, the H1 results demonstrate our resilience and capacity to deliver on long-term ambitions. 

The 56.3% y-o-y growth in profit after tax for the period is a testament to the strength of our organisation to continually deliver exceptional services to our customers in these unprecedented times. We have been able to achieve this feat by leveraging our agent banking network, innovative e-banking capabilities, and operational efficiency utilizing technology. 

During the quarter, we successfully divested from the underwriting (insurance) businesses to focus on our banking operations. We are confident this will enhance greater value to our stakeholders and strengthen the Group's resolve to consolidate its leadership of the banking sector. Following the divestment, FBNHoldings injected Tier 1 capital into FirstBank, effectively increasing its CAR to 16.5%. This provides a comfortable buffer against regulatory requirements with the potential to support any emerging business opportunities.

Looking ahead, we remain cautious, but we are confident that our business is fundamentally strong to withstand any future challenge towards enhanced performance".

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