FBN Holdings (FBNH) Plc, has demonstrated sustainable growth in its financial results for the year ended December 31, 2022 and first quarter (Q1), 2023.
The Holding Company in demonstrated sustainable income growth from core business as gross earnings went up by 6.3 per cent to N805.1 billion in full year, 2022, while gross earning in Q1, 23 amounted to N259.5 billion, representing a growth of 43.8 per cent year-on-year.
FBN Holdings’ Q1 2023 financial statement revealed a significant increase in profitability, with profit before tax rising by 53.6 per cent to N56.105 billion and profit after tax increasing by 54.48 per cent to N50.054 billion. While for the year ended December 2022, profit before tax stood at N157.5 billion, down by 5.4 per cent Y-o-Y.
Nonperforming loan (NPL) ratio at 4.0 per cent in Q1 23, below the five per cent regulatory threshold, while in full year, 4.3 per cent and 6.1 per cent in full year 2021. Significant improvement in NPL coverage ratio as at Q1, 2023 to 96.7 per cent, while 86.6 per cent in 2022 and 62.2 per cent in 2021.
Increased earnings contribution from international subsidiaries went up to 30.0 per cent and in full year 2021, 25.5 per cent. Also, compelling bank-led agent banking network in Nigeria with more than 200, 000 agents; processed on average of over 253 million electronic banking transactions per month; processed 332 million transactions worth N8.5 trillion in 2022 through FirstMonie Agents; while 22 per cent market share of transactions processed by the most dominant switching network.
FBNH noted that its solid earnings growth supporting organic capital generation and maintained its capital management framework of focusing on optimising earning, saying that its structural improvements deliver strengthened Group with significant upside potential.
2023 Strategic Priorities
The Holding Company said it will enhance revenue and profitability; strengthen value proposition; and optimise operational efficiency.
FBNH stated that it depends on its franchise strength, solid funding base, improving operational excellence and disciplined capital management underpin strong investment case as the Group targets 20 per cent growth in Return on Equity (ROE).
Speaking on the financial position of the company, the group managing director of FBNH, Nnamdi Okonkwo, stated that, “FBNHoldings continues to make good progress in transforming the enterprise despite the uncertain and complex operating environment, leveraging the execution capabilities of top talents across the Group to generate sustainable value for all our stakeholders.
“In 2022, we grew net interest income by 59.2 per cent y-o-y to N363.2 billion which ultimately delivered a robust profit before tax of to N157.7 billion from the ordinary business of the Group.
“As a reaffirmation of our commitment to drive revenue and profitability leveraging on the strengthened balance sheet, loans and advances grew 31.5 per cent y-o-y to N3.8 trillion and total asset 18.4 per cent y-o-y to N10.6 trillion, while our investments in technology and strong transactional and digital banking capabilities continue to support non-interest income generation.”
He pointed out that “in line with our strategic priorities, we are driving further revenue and profitability growth through a carefully evaluated delivery model of service offerings, with a focus on owning the customer journey while deepening our unique value proposition across markets.
“We are re-imagining our digital client acquisition and product offerings and accelerating next generation capabilities to exceed current requirements of existing and potential customers. In addition, we remain committed to enhancing our operational efficiency with a focus on optimising processes through technology and digital platform delivery while ensuring its availability and stability.”
Okonkwo added that “we see endless possibilities ahead, as we keep defining frontiers of financial services, optimising the depth and breadth of our unique portfolio of businesses to unlock the full potential of FBNH.”
Also, the chief executive officer of First Bank (Commercial Banking Group), Dr. Adesola Adeduntan, said that the Commercial Banking Group continued the strong performance trajectory from the 2021 results posting another set of robust results for full year 2022 with gross earnings up 4.4 per cent year-on-year to N748.6 billion and profit before tax of N147 billion, recording a growth of 12.4 per cent year-on-year.
“As a Group, we continue to reap the benefits of our investments in technology, transaction and digital banking capabilities which enable us to offer better customer experiences to our numerous clients.
“In the face of the increasingly competitive landscape, we are continually looking into the future to build an enduring and sustainable institution,” he said.
According to Adeduntan, the group remains focused on the disciplined execution of our strategic initiatives aimed at positioning the Group for improved profitability, facilitating performance excellence, and exceeding the expectations of all our stakeholders.
Defining Frontiers
FBNH said the Group’s continuous focus on pushing the boundaries into the future, saying ‘Defining Frontiers’ is directional and comes out strong, assertive and exudes authority.
“It is a courageous statement that heightens our bold claim to our pioneering spirit. Examples of frontiers defined include, Agent Banking and the Holding Company structure, subsequently adopted by most peers in the industry; it underscores the fact that we are not only thinkers, visioners and implementers but also accentuates the Group’s innovative exploratory spirit and tenacity to pushing boundaries; and it speaks to ownership, flexibility to reinvent, agility to adapt to greater technology and digitalisation, differentiation to meet more nuanced customer needs or taking up new challenges or opportunities,” FBNH said.
