'Despite COVID-19...' FBN Holdings records boom in half-year profit

FBN Holdings Plc reported gross earnings of N296.4 billion for the six months ended June 30, 2020, showing an increase of 5.8 per cent, from N280.3 billion for the corresponding period of 2019. Net interest income rose 7.4 per cent from N141.7 billion to N131.3 billion in 2020, while non-interest income grew by 46.8 from N54.6 billion to N80.1 billion in 2020.

Unlike the recent trend witnessed in the company, impairment charge for credit losses rose 38.6 per cent from N22.1 billion to N30.7 billion. Despite the rise in impairment charges, profit before tax (PBT) grew by 14.3 per cent to N41.4 billion, from N36.2 billion, while profit after tax (PAT)grew faster by 56.3 per cent to N49.5 billion from N31.6 billion in 2019.

Commenting on the results, the Group Managing Director of FBN Holdings, UK Eke, said: “The H1 2020 financial results are impressive and reconfirm our consistent focus on enhanced shareholder value. Despite the difficult operating environment, the H1 results demonstrate our resilience and capacity to deliver on long-term ambitions.

“The 56.3 per cent growth in PAT for the period is a testament to the strength of our organisation to continually deliver exceptional services to our customers in these unprecedented times. We have been able to achieve this feat by leveraging our agent banking network, innovative e-banking capabilities and operational efficiency and by utilising technology.”

He added: “During the quarter, we successfully divested from the underwriting (insurance) businesses to focus on our banking operations. We are confident this will enhance greater value to our stakeholders and strengthen the Group’s resolve to consolidate its leadership of the banking sector.

“Following the divestment, FBNHoldings injected Tier 1 capital into FirstBank, effectively increasing its CAR to 16.5 per cent. This provides a comfortable buffer against regulatory requirements with the potential to support any emerging business opportunities. Looking ahead, we remain cautious, but we are confident that our business is fundamentally strong to withstand any future challenge towards enhanced performance”.

Also, commenting on the results, the Chief Executive Officer of FirstBank and its subsidiaries, Dr. Adesola Adeduntan, said: “As the economy reopens gradually, in Nigeria and other key markets as in the rest of the world, we are adopting a pragmatic approach with optimism on propelling our performance for enhanced profitability through customer led innovation and disciplined execution.”