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FBN Holdings Plc: What The Fundamentals Say

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Friday, August 11, 2017 10.00AM / Proshare Research

The fundamentals of FBNH in recent times after proper analysis have been very impressive and worthwhile. At the end of 2016 FY calendar, the bank emerged as the financial institution with the largest Gross Earnings with N582bn as it maintained its market leadership based on increasing revenue drive. 


Also, it was the only bank to have carried out N100m transaction per month on the main switch network considering its rich heritage and its 123yrs in commercial banking services. 

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Below are few fundamentals on the bank to help throw more light on the bank’s performance.

Book Value
As at Q1 2017, FBNH emerged the 2nd largest bank in terms of book value behind ZENITHBANK while WEMABANK and UNITYBNK recorded the least book value among the banks.  

 

Loans and Advances to Customers 
ETI and ZENITHBANK gave the highest loans and advances to customers to emerge 1st and 2nd respectively as FBNH emerged 3rd with the highest loans and advances to customers while WEMABANK and UNITYBNK emerged the least banks.
 

 

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 Customer Deposits 
ETI emerged 1st as it received the highest customer deposit while FBNH came 2nd as ZENITHBANK and UBA followed closely to emerge 3rd and 4th respectively while UNITYBNK and WEMABANK received the least deposits.

 

 

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Employees 
FBNH is the 3rd bank with the highest number of employees in the banking industry coming behind ETI and UBA that emerged 1st and 2nd respectively while WEMABANK has the least number of employees as at Q1 2017. 

Preliminary analysis revealed that FBNH’s salary cost per employee is much lower than its competitor. As per 2016 data, total personnel cost was put at N84bn against 9,099 employees. Relatively, the cost per employee is much higher than GUARANTY, UBA, ETI (Tier 1 banks) and STERLNBANK, UNITYBNK, FCMB, FIDELITYBK, DIAMONDBNK (Tier 2 banks)

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Market CAP 
As at 8th June, 2017, FBNH is the 6th bank with the highest market capitalisation among banks listed on NSE as GUARANTY, ZENITHBANK and UBA emerged 1st, 2nd and 3rd respectively UNITYBNK has the lowest market capitalisation. 

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Total Income 
ETI and FBNH emerged as the 1st and 2nd banks with the highest total income respectively while WEMABANK recorded the least total income. 

Analysis revealed that FBNH’s income per branch is a bit lower than its peers. As per 2016 data, total income (N468bn) from 875 branches gives income per branch as N 535m. If we compare it with Tier 1 Banks then it is much lower than GURANTY, ACCESS, ZENITHBANK but it is higher than ETI and UBA. In comparison to Tier 2 banks, it is lower than STANBIC and FCMB. 

 

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