Business

FBN Holdings 2022 Earnings Rises To N805 Billion; Q1 2023 Profit Grows By 55% To N56 Billion

Published

4 months ago

June 5, 2023

Business Echo Magazine

results for the nine months ended September 30, 2022

Rashidat Okunlade Writes

FBN Holdings Plc. (FBNH) announces its unaudited results for the first quarter ended March 31, 2023.

Selected Financial Summary

Income Statement
(₦ billion)	Q1 2023	Q1 2022	∆	Key Ratios %	Q1 2023	Q1 2022
Gross earnings	259.5	180.5	+43.8%	Post-tax return on average equity⁵	20.1	14.5
Interest income	179.6	109.4	+64.1%	Post-tax return on average assets⁶	1.9	1.4
Net-interest income	111.8	72.8	+53.6%	Earnings yield⁷	10.1	7.6
Non-interest income[1]	72.3	64.7	+11.8%	Net-interest margin⁸	6.3	5.1
Operating income[2]	184.2	137.5	+33.9%	Cost of funds⁹	3.0	2.0
Impairment charges for losses	16.9	8.8	+93.1%	Non-interest revenue/operating income	39.3	47.1
Operating expenses	111.2	92.2	+20.6%	Cost to income¹⁰	60.4	67.0
Profit before tax	56.1	36.5	+53.6%	Gross loans to deposits	54.1	51.9
Profit for the period [3]	50.1	32.4	+54.5%	Capital adequacy (FirstBank (Nigeria)	15.6	16.0
Basic EPS (kobo)[4]	1.38	0.89	+54.0%	Capital adequacy (FBNQuest Merchant Bank)	17.4	19.7
Statement of Financial Position				NPL/Gross Loans	4.0	6.0
(₦ billion)	Q1 2023	FY 2022	∆	NPL coverage¹¹	96.7	68.9
Total assets	11,094	10,578	4.9%	PPOP¹²/impairment charge (times)	4.3	5.2
Customer loans & advances (Net)	3,949	3,789	4.2%	Cost of risk¹³	1.7	1.1
Customer deposits	7,591	7,124	6.6%	Book value per share	27.9	25.3

Nnamdi Okonkwo, Group Managing Director commented: “FBNHoldings has sustained its positive performance momentum despite the clearly difficult operating environment. This is a testament to our ability to effectively navigate the challenging business terrain and optimise opportunities. It further demonstrates our disciplined risk management and strong execution capabilities resulting in enhanced revenue generation and improved bottom line.

“Notwithstanding the ongoing progress, we remain focused on innovating and deepening our value propositions and delivery model while optimising operational efficiencies, using technology, to drive sustainable earnings and returns for our shareholders. We are confident that the Q1 performance will be maintained for the rest of the year.”

Commercial Banking

Gross earnings of ₦7 billion, up 44.2% y-o-y (Mar 2022: ₦170.4 billion)
Net interest income of ₦110.0 billion, up 50.9% y-o-y (Mar 2022: ₦72.9 billion)
Non-interest income of ₦67.8 billion, up 10.6% y-o-y (Mar 2022: ₦61.3 billion)
Operating expenses of ₦107.6 billion, up 21.0% y-o-y (Mar 2022: ₦88.9 billion)
Profit before tax of ₦55 billion, up 57.0% y-o-y (Mar 2022: ₦34.1 billion)
Profit after tax of ₦48.0 billion, up 54.8% y-o-y (Mar 2022: ₦0 billion)
Total assets of ₦6 trillion, up 5.1% y-t-d (Dec 2022: ₦10.1 trillion)
Customers’ loans and advances (net) of ₦3.9 trillion, up 4.5% y-t-d (Dec 2022: ₦3.7 trillion)
Customers’ deposits of ₦4 trillion, up 6.64% y-t-d (Dec 2022: ₦6.9 trillion)

Dr. Adesola Adeduntan, Chief Executive Officer of FirstBank (Commercial Banking Group) commented: “The FirstBank Group delivered an impressive performance in Q1 2023, with significant growth across key metrics. Gross earnings recorded a substantial increase of 44.2% year-on-year, demonstrating the Bank’s ability to generate substantial revenue from core operations. Net interest income saw a remarkable surge of 50.9% year-on-year on the back of optimal asset pricing and effective management of interest-earning assets. Increasing penetration of digital and transaction banking offerings supported our Q1 performance in non-interest income by 15.3% growth. The increase of 21.0% year-on-year in operating expense reflects the high inflationary environment but within revenue growth. Overall, the Commercial Banking Group delivered substantial growth of 57.0% and 54.8% in profit before tax and profit after tax, respectively, for the quarter.

The growth in our performance metrics underlies the strength in the core fundamentals underpinning our business strategy and the sustainability of our business model. This year marks our 129th anniversary and these results clearly demonstrate the resilience of our business model and proven ability to transform ourselves to meet the demands of changing times and seasons. Our transformative and purpose-driven strategy, alongside our strong value propositions, enables us to continue supporting our customers across our chosen markets. We are optimistic about the rest of FY 2023 and these results are a sign of better things to come.”

Merchant Banking & Asset Management (MBAM) / FBNQuest

Gross earnings of ₦85 billion, down 16.4% y-o-y (Mar 2022: ₦10.5 billion)
Profit before tax of ₦2.2 billion, down 34.4% y-o-y (Mar 2022: ₦3.4 billion)
Total assets of ₦7 billion, up 0.1% y-t-d (Dec 2022: ₦495.4 billion)

Business

Mayor Of Houston Texas Endorses Fidelity Bank’s Trade Expo (FITCC)

Published

4 days ago

September 24, 2023

Business Echo Magazine

Mayor Of Houston Texas Endorses Fidelity Bank’s Trade Expo (FITCC)

Rashidat Okunlade Writes

Fidelity Bank’s upcoming trade expo tagged, the Fidelity International Trade and Creative Connect (FITCC Houston), has received a major boost as the Mayor, City of Houston, Sylvester Turner, has termed it, “A catalyst to support bilateral trade between Nigeria and Houston; and an opportunity for the Houston community and the diaspora to explore emerging trends, forge new partnerships and unlock new possibilities”.

This was made known in a video message recently issued by the mayor. In the one-minute clip obtained by our journalist, Mayor Turner highlighted the several side attractions scheduled for FITCC Houston and encouraged businesses to take advantage of the expo to expand their businesses beyond borders.

The event is scheduled for Tuesday, 24, and Wednesday, 25th October 2023 at the George R. Brown Convention Center, 1001 Avenida de las Americas, Houston, Texas 77010. The bank will be hosting exporters, leading businesses, entrepreneurs, investors, and regulators operating in the commodity, service, creative, fashion, and FinTech sectors in Nigeria and the United States with the view of promoting Nigeria’s non-oil exports and facilitating integrations to global supply-chain networks.

Watch Mayor Turner’s video here:

https://www.instagram.com/p/CxKyXhsN9xn/

Business

eTranzact CEO Bags BusinessDay Top 25 CEOs Award

Published

4 days ago

September 24, 2023

Business Echo Magazine

Left-Right: Mr. Frank Aigbogun, Publisher BusinessDay presenting Mr Olaniyi Toluwalope : MD/CEO, eTranzact Plc the award recognition of the company's stellar performance on the Nigerian Stock Exchange during the Top 25 CEOs Award in Lagos.

Rashidat Okunlade Writes

Mr Olaniyi Toluwalope, Managing Director and Chief Executive Officer, eTranzact International PLC, has bagged Business Day’s Top 25 CEOs award in recognition of his company’s stellar performance on the Nigerian Stock Exchange.

Speaking during the award ceremony last weekend in Lagos, the publisher, Business Day Media Ltd., Mr. Frank Aigbogun stated that the award is more than just a recognition ceremony, but a reward for excellence, innovation, and drive for positive change.

According to the publisher, the eTranzact boss and other awardees have demonstrated extraordinary leadership, resilience and relentless pursuit of a result of success and this remarkable achievement in growing market value within the period of review stands them out as industry leaders, serving as a beacon of inspiration, admiration and respect from their peers and stakeholders alike.

“This has made us gather to celebrate your achievements, passion, and your dedication to excellence. As we recognize the countless hours of hard work, sleepless nights, and sacrifices that go into building and leading a successful business, your resilience in the face of challenges is truly commendable and it is an honour to acknowledge and celebrate your triumphs,” he concluded.

Responding after the award, Mr Olaniyi Toluwalope said the award is a testament to what they have been doing in the financial technology sector within the past 20 years.

Left-Right: Mr. Frank Aigbogun, Publisher BusinessDay presenting Mr Olaniyi Toluwalope : MD/CEO, eTranzact Plc the award recognition of the company’s stellar performance on the Nigerian Stock Exchange during the Top 25 CEOs Award in Lagos.etra

Toluwalope said: “This award means a lot to us since we began the journey of transformation as an organisation a couple of years ago.”He believed the board, the management, and the entire team have worked very hard to reimagine strategy, focusing extensively on execution capability. “We have built more partnerships, deepened our collaboration with the government, private sector, with lots of our financial service partners. The quality of products and solutions we offer coupled with the investment we have made in technology infrastructure is the outcome of all we are seeing now in terms of our improvement and top performance.”

“As one of the top fintech companies in the country, having been around for over 20 years, doing great things and setting new standards and creating pioneer products and solutions, these are the things that have created the pillars which we stand on today, which is what is creating this visibility and identification we are seeing and benefiting from,” he said. It is worth noting that, eTranzact under the leadership of Mr. Toluwalope recorded the highest-ever profitability in the 20-year history of the company in its 2022 financial year.

The company is already on the upward trajectory to build on the gains of the performance by continually providing world-class solutions and products to its discerning clients which cuts across both public and private sectors.

Business

FBNHoldings CEO, Nnamdi Okonkwo Bags Outstanding CEO Award

Published

1 week ago

September 19, 2023

Business Echo Magazine

L- R: Adewale Arogundade, Acting Company Secretary, FBNHoldings, Tolu Oluwole, Head, Investor Relations, FBNHoldings, Nweke (Junior), former Director General, Nigerian Economic Summit Group, Oyewale Ariyibi, Executive Director, Finance FBNHoldings, Frank Aigbogun, Publisher, BusinessDay, and Wasiu Shafe, Financial Controller, FBNHoldings.

…as BusinessDay honour Top 25 CEOs

Rashidat Okunlade Writes

Nnamdi Okonkwo, Group Managing Director of FBN Holdings Plc, has bagged outstanding CEO in the just concluded Top 25 CEOs Awards organized by BusinessDay that was held at the Ballroom of the Federal Palace Hotel, Victoria Island, Lagos last Saturday.

Left-Right: Adewale Arogundade, Acting Company Secretary, FBNHoldings, Tolu Oluwole, Head, Investor Relations, FBNHoldings, Nweke (Junior), former Director General, Nigerian Economic Summit Group, Oyewale Ariyibi, Executive Director, Finance FBNHoldings, Frank Aigbogun, Publisher, BusinessDay, and Wasiu Shafe, Financial Controller, FBNHoldings.

In this year’s edition of the BusinessDay Top 25 CEOs, the publication recognised 25 Chief Executive Officers and Managing Directors of various listed firms on the Nigerian Stock Exchange (NGX) who experienced outstanding financial development and also made important contributions to their respective industries.

FBNHoldings team that graced the event are Adewale Arogundade, Acting Company Secretary, FBNHoldings, Tolu Oluwole, Head, Investor Relations, FBNHoldings, Nweke (Junior), former Director General, Nigerian Economic Summit Group, Oyewale Ariyibi, Executive Director, Finance FBNHoldings, Frank Aigbogun, Publisher, BusinessDay, and Wasiu Shafe, Financial Controller, FBNHoldings.