FBNH Declares N40.01bn Profit in 2017 Audited Results; Proposes 25k Dividend,(SP:N13.40k)

Wednesday, April 25, 2018 /8:02AM/NSE

Proshare Nigeria Pvt. Ltd.


FBN Holdings Plc. (“FBNH” or “FBNHoldings” or the “Group”) today announces its audited results for the full year ended 31 December 2017.

Income Statement                                                         

  • Gross earnings of N595.4 billion, up 2.3% year-on-year (y-o-y) (Dec 2016: N581.8 billion)
  • Net-interest income of N331.5 billion, up 8.9% y-o-y (Dec 2016: N304.4 billion)
  • Non-interest income of N113.7 billion, down 31.3% y-o-y (Dec 2016: N165.5 billion)
  • Operating income of N444.8 billion, down 5.3% y-o-y (Dec 2016: N469.9 billion)
  • Impairment charge for credit losses of N150.4 billion, down by 33.5% y-o-y (Dec 2016: N226.0 billion)
  • Operating expenses of N238.0 billion, up 7.7% y-o-y (Dec 2016: N220.9 billion)
  • Profit before tax of N56.8 billion, up 147.6% y-o-y (Dec 2016: N22.9 billion)
  • Profit after tax N47.8 billion, up 178.8% y-o-y (Dec 2016: N17.1 billion)
  • Proposed dividend per share of N0.25

Statement of Financial Position

  • Total assets of N5.2 trillion, up 10.5% y-o-y (Dec 2016: N4.7 trillion)
  • Customer deposits of N3.14 trillion, up 1.3% y-o-y (Dec 2016: N3.10 trillion)
  • Customer loans and advances (net) of N2.0 trillion, down 4.0% y-o-y (Dec 2016: N2.1 trillion)

Key Ratios

  • Post-tax return on average equity of 7.6% (Dec 2016: 3.0%)
  • Post-tax return on average assets of 1.0% (Dec 2016: 0.4%)
  • Net-interest margin of 8.4% (Dec 2016: 8.8%)
  • Cost to income ratio of 53.5% (Dec 2016: 47.0%)
  • NPL ratio of 22.8% (Dec 2016: 24.4%)
  • 51.1% liquidity ratio (FirstBank (Nigeria) (Dec 2016: 52.7%)
  • 17.7% Basel 2 CAR (FirstBank (Nigeria) (Dec 2016: 17.8%)
  • 15.7% Basel 2 CAR (FBN Merchant Bank) (Dec 2016: 22.6%)

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

“As evident by the continually improving set of results, the initiatives we have put in place are producing encouraging results ahead of our projections. It is noteworthy to highlight that this progress has not been detrimental to our commitment to cost containment, illustrated by the 7.7% y-o-y increase in opex which is significantly below the headline inflation rate of 15.4%. This result was also made possible by the successful implementation of our digitisation initiatives, that have allowed us to serve our customers in a more efficient and effective way. It is re-assuring that our dominance in the electronic platform has positioned the Group for a prosperous future and our holding company model is yielding further synergies and increasing cross-selling amongst all the operating companies in the Group.

However, we recognise the need for accelerated resolution of our legacy assets to demonstrate sustainable improvement in asset quality as the progress we made during the year was moderated by developments in Q4 which kept our performance below guidance. This was largely as a result of the impairment of 9mobile, which was across the industry, as well as the foreign currency translation impact on our existing portfolio. These are one-off events and we assure that appreciable progress would be made on NPL in 2018 in line with our 3 years strategic plan.

In summary, we are delighted to say that we have made good progress towards achieving our 2019 strategic goals and are confident that 2018 will be another year full of successes for the Group.”

Proshare Nigeria Pvt. Ltd.

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