Of FBNH Numbers and Tables: The Statement of Financial Position

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Sunday, September 26, 2021 05:40 AM / by Proshare Research/ Header Image Credit: EcoGraphics


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Growth in Assets

FBNH's Assets grew by +4.35% in H1 2021 in comparison to FY 2020. In 2016, the bank's assets grew by +13.70%, while growth slowed to +10.55% and +6.35% in the two years that followed, respectively. Asset growth recovered in 2019, with a rise of +11.40% before spiralling by +23.95% in 2020. In the first half of 2021, FBNH's Assets rose Y-o-Y by +4.35% from N7.69tr in FY 2020 to N8.024tr in H1 2021 (see chart 11 below).

 

 

Chart 11: FBNH's Growth in Total Assets 2016 - H1 2021 (%)

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Source: FBNH, Proshare Research

 

Growth In Deposits

Customers' deposits grew by +3.74% between FY2020 and H1 2021, however, on a Y-o-Y basis, deposits grew by +16% to N5.08trn in H1 2021 from N4.37trn in H1 2020. This implies that in comparison with the preceding period, the bank's most crucial liability added close to a sixth of its value in H12020. The growth in deposits in FY 2020 exceeds the annual deposit growth rates between 2016 and 2019 (see chart 12 below).

 

Chart 12: FBNH's Growth in Deposit from Customers 2016 - H1 2021 (%)

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Source: FBNH, Proshare Research

 

The FY2020 result of FBNH confirms that deposits grew at a much faster rate in the year; this notably is not matched by the required increase in lending.

 

Growth in Loans and Advances

Over the last five years, FBNH has seen both positive and negative growth in Loans and advances. This was particularly evident in 2017 and 2018 when Loans and advances contracted by -3.97% and -16.53%, respectively. By 2019, the Loans and advances returned to their growth streak, consolidating the same in FY2020 results (see chart 13 below).

 

Chart 13: FBNH's Growth in Loans and Advances 2016 - H1 2021 (%)

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Source: FBNH, Proshare Research

 

Despite the appreciation of loans and advances in FY 2020 by +19.70%, it needed to grow loans and advances by 71% to meet the minimum LDR.

 

Growth in Shareholders' Fund 

After reporting negative growth in shareholders' funds in 2018, FBNH recorded a +24.99% growth in shareholder's funds in 2019. Since then, the change in shareholders' funds has slowed, moderating to +15.74% in 2020. In the first half of 2021, shareholders' funds increased by +0.99% against Fy 2020 figures. On a Y-o-Y basis shareholders fund rose by +9.66% to N772.09bn from H1 2020 (See Chart 14 below).


Chart 14: FBNH's Growth in Total Equity 2016 - H1 2021 (%)

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Source: FBNH, Proshare Research



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Downloadable Versions of 100 Days After CBN's Board Removal: First Bank's Shaky House of Cards Report (PDF)

1.      Executive Summary: 100 Days After CBN's Board Removal: First Bank's Shaky House of Cards -  September 19, 2021

2.     Full Report: 100 Days After CBN's Board Removal: First Bank's Shaky House of Cards  -  September 19, 2021


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7.  Board Governance: A Thin Line Between Oversight and Operations - Sep 28, 2020 - IoD Centre for Corporate Governance

8. Leadership, Change and Corporate Transformation - The Nigerian Experience  Nov 07, 2017, Olufemi AWOYEMI - Proshare

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