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FBNH Releases Q4'16 and Q1'17 Results; Declares N16.1 bn Profit in Q1,(SP:N3.50k)

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 Thursday, April 27, 2017/ 6:03PM / NSE  
 

 

 

 

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FBN Holdings Plc. (“FBNH” or “FBNHoldings” or the “Group”) today announces its audited results for the full year ended 31 December 2016.

Income Statement

  • Gross earnings of N581.8billion, up 15.7% year-on-year (y-o-y) (Dec 2015: N502.7 billion)
  • Net-interest income of N304.4 billion, up 14.8% y-o-y (Dec 2015: N265.2 billion)
  • Non-interest income of N165.5 billion, up 68.9% y-o-y (Dec 2015: N97.9 billion)
  • Operating income of N469.9 billion, up 29.4% y-o-y (Dec 2015: N363.1 billion)
  • Impairment charge for credit losses of N226.0 billion (Dec 2015: N118.8 billion)
  • Operating expenses of N220.9 billion, down 0.8% y-o-y (Dec 2015: N222.7 billion)
  • Profit before tax of N22.9 billion, up 6.3% y-o-y (Dec 2015: N21.6 billion)
  • Profit after tax N17.1 billion, up 10.3% y-o-y (Dec 2015: N15.5 billion) 

Statement of Financial Position

  • Total assets of N4.7 trillion, up 13.7% (Dec 2015: N4.2 trillion)
  • Customer deposits of N3.1 trillion, up 4.5% (Dec 2015: N3.0 trillion)
  • Customer loans and advances (net) of N2.1 trillion, up 14.7% (Dec 2015: N1.8 trillion)

Key Ratios

  • Post-tax return on average equity of 3.0% (Dec 2015: 2.8%)
  • Post-tax return on average assets of 0.4% (Dec 2015: 0.4%)
  • Net-interest margin of 8.8% (Dec 2015: 8.1%)
  • Cost to income ratio of 47.0% (Dec 2015: 61.3%)
  • NPL ratio of 24.4% (Dec 2015: 18.1%)
  • 52.7% liquidity ratio (FirstBank (Nigeria)) (Dec 2015: 58.6%)
  • 17.8% Basel 2 capital adequacy ratio ((FirstBank (Nigeria)) (Dec 2015: 17.1%)
  • 22.6% Basel 2 CAR (FBN Merchant Bank) (Dec 2015: 23.0%)

Notable Developments

  • Key leadership changes across the group

o    Appointed new executives within the Commercial Banking group

o    Executive Director - Corporate Banking

o    Chief Risk Officer

o    Chief Financial Officer

o    Group Executive, Technology and Services

  • Overhauled the Risk Management framework and governance of the Commercial banking group
  • African Development Bank (AfDB) approval of $300 million to refinance FirstBank’s trade finance transactions
  • FirstBank sustained its leadership as the only financial institution in Nigeria to achieve 100 million electronic-banking transactions per month.
  • Launched *894# USSD banking service to deepen financial inclusion
  • FBN Insurance now the fastest growing Insurance company in Nigeria.

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

2016 has been a year characterised by significant uncertainty in the operating environment. Despite this, FBNHoldings has delivered a solid performance while focusing on addressing the pre-existing issues in the loan book which resulted in the current loan loss. This performance has been achieved through ongoing initiatives in driving efficiency across the various businesses, transforming the risk management and control environment, containing cost, as well as enhancing revenue generation from the banking and non-banking subsidiaries. 

We expect an improved economic environment through 2017 and are confident that the foundations we have put in place will drive improved financial performance and consequently enhance shareholder returns.”

FBN Holdings Plc. (“FBNH” or “FBNHoldings” or the “Group”) today announces its unaudited results for the three months ended 31 March 2017.

Income Statement                                                       

  • Gross earnings of N141.0 billion, up 31.2% year-on-year (y-o-y) (Mar 2016: N107.5 billion)
  • Net-interest income of N80.3 billion, up 25.7% y-o-y (Mar 2016: N63.9 billion)
  • Non-interest income of N24.2 billion, up 10.4% y-o-y (Mar 2016: N21.9 billion)
  • Operating income of N104.5 billion, up 21.8% y-o-y (Mar 2016: N85.8 billion)
  • Impairment charge for credit losses of N28.8 billion (Mar 2016: N12.8 billion)
  • Operating expenses of N55.7 billion, up 9.3% y-o-y (Mar 2016: N50.95 billion)
  • Profit before tax of N19.96 billion, down 9.5% y-o-y (Mar 2016: N22.1 billion)
  • Profit after tax N16.1 billion, down 22.4% y-o-y (Mar 2016: N20.7 billion)

Statement of Financial Position

  • Total assets of N4.98 trillion, up 5.2% year-to-date (y-t-d) (Dec 2016: N4.7 trillion)
  • Customer deposits of N3.1trillion, flat at -0.3% y-t-d (Dec 2016: N3.1 trillion)
  • Customer loans and advances (net) of N2.1 trillion, down 1% y-t-d (Dec 2016: N2.1 trillion)

Key Ratio

  • Post-tax return on average equity of 10.9% (Mar 2016: 14.4%)
  • Post-tax return on average assets of 1.3% (Mar 2016: 2.0%)
  • Net-interest margin of 8.2% (Mar 2016: 8.1%)
  • Cost to income ratio of 53.3% (Mar 2016: 59.4%)
  • NPL ratio of 26.0% (Mar 2016: 21.5%)
  • 53.5% liquidity ratio (FirstBank (Nigeria)) (Mar 2016: 58.2%; Dec 2016: 52.7%)
  • 17.8% Basel 2 capital adequacy ratio (FirstBank (Nigeria)) (Mar 2016: 17.2%, Dec 2016: 17.8%)
  • 26.4% Basel 2 CAR (FBN Merchant Bank) (Dec 2016: 22.6%)

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

“We are making good strides on the initiatives we have instituted across our businesses, fundamentally on risk management framework to forestall asset quality deterioration and we remain focused on the various remedial and recovery activities. Similarly, we are seeing enhanced revenue from the banking and non-banking subsidiaries in line with our strategy of enhancing revenue generation capacity and deepening collaboration across the Group. The increasing earnings contribution from the non-banking businesses have cushioned the overall impact of the challenges faced by the Commercial Banking franchise, further reinforcing the inherent strength of our holding company.

Overall, we remain resolute in our commitment to reposition the Group towards enhanced shareholder value.”

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