FBN Holdings Plc. Reports N145.8bn as Gross Earnings for Q1 2019

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FBN Holdings Plc. (“FBNH” or “FBNHoldings” or the “Group”) today announces its unaudited results for the three months ended 31 March 2019.

Income Statement
Gross earnings of N145.8 billion, up 5.0% year-on-year (y-o-y) (Mar 2018: N138.9 billion)
Net-interest income of N74.2 billion, down 2.1% y-o-y (Mar 2018: N75.7 billion)
Non-interest income of ₦30.2 billion, up 21.8% y-o-y (Mar 2018: N24.8 billion)
Operating income of N104.3 billion, up 3.8% y-o-y (Mar 2018: ₦100.5 billion)
Impairment charge for credit losses of N13.8 billion, down 45.3% y-o-y (Mar 2018: ₦25.3 billion)
Operating expenses of N71.2 billion, up 26.3% y-o-y (Mar 2018: ₦56.4 billion)
Profit before tax of ₦19.3 billion, up 2.6% y-o-y (Mar 2018: ₦18.8 billion)
Profit after tax N15.8 billion, up 6.9% y-o-y (Mar 2018: N14.8 billion)

Statement of Financial Position

Total assets of N5.58 trillion, up 0.2% year-to-date (y-t-d) (Dec 2018: N5.57 trillion)
Customer deposits of ₦3.52 trillion, up 0.8% y-t-d (Dec 2018: N3.49 trillion)
Customer loans and advances (net) of N1.67 trillion, down 0.6% y-t-d (Dec 2018: N1.68 trillion)

Key Ratio

Pre-tax return on average equity of 14.4% (Mar 2018: 11.3%)
Post-tax return on average equity of 11.8% (Mar 2018: 8.9%)
Pre-tax return on average assets of 1.4% (Mar 2018: 1.4%)
Post-tax return on average assets of 1.1% (Mar 2018: 1.1%)
Net-interest margin of 7.9% (Mar 2018: 7.2%)
Cost to income ratio of 68.2% (Mar 2018: 56.1%)
NPL ratio of 25.3% (Mar 2018: 21.5%)
41.8% liquidity ratio (FirstBank (Nigeria)) (Dec 2018: 45.2%)
16.5% Basel 2 capital adequacy ratio (FirstBank (Nigeria)) (Dec 2018: 17.3%)
13.5% Basel 2 CAR (FBNQuest Merchant Bank) (Dec 2018: 12.2%)

Commenting on the results, UK Eke, the Group Managing Director said:

“We have had a positive start in the year with earnings heading in the right direction. We remain committed to achieving our strategic objectives by continuing to improve revenue generation capabilities and to boost operational efficiencies while maintaining a rigorous approach to risk management. We continue to leverage our large customer base and market reach to grow our digital banking proposition, translating into a 21.8% growth in non-interest revenues. We are also channelling our efforts towards improving the quality of our risk assets and forestalling new NPL formation. The rise in our operating expenses resulting from ongoing transformation initiatives and investments in increased productivity is expected to reflect in enhanced revenue and efficiencies in the near term.

“We will continue to build on the achievements we have made, and we believe that our performance at year-end will reinforce our commitment to enhancing the financial health of our businesses and position the Group for a prosperous future. Consequently, we expect to continue to create value for all our stakeholders by optimising investments in people, technology and processes.”

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