Fbn Holdings Plc:
* FY ended Dec 2016 profit before tax of 22.9 billion naira versus 21.6 billion naira year ago
* FY net-interest income of 304.4 billion naira versus 265.2 billion naira year ago
* Says dividend per share of 0.20 naira is proposed to shareholders
FBN Holdings Plc on Thursday announced its audited results for the full year ended 31 December 2016 with Profit after tax of N17.1 billion, up 10.3% from N15.5 billion in 2015.
Highlights of the result showed that Gross earnings of N581.8billion, up 15.7% year-on-year (y-o-y) (Dec 2015: N502.7 billion); Net-interest income of N304.4 billion, up 14.8% y-o-y (Dec 2015: N265.2 billion); Non-interest income of N165.5 billion, up 68.9% y-o-y (Dec 2015: N97.9 billion); Operating income of N469.9 billion, up 29.4% y-o-y (Dec 2015: N363.1 billion); Impairment charge for credit losses of N226.0 billion (Dec 2015: N118.8 billion); Operating expenses of N220.9 billion, down 0.8% y-o-y (Dec 2015: N222.7 billion); Profit before tax of N22.9 billion, up 6.3% y-o-y (Dec 2015: N21.6 billion)
Statement of Financial Position of the group showed total assets of N4.7 trillion, up 13.7% (Dec 2015: N4.2 trillion); Customer deposits of N3.1 trillion, up 4.5% (Dec 2015: N3.0 trillion); and Customer loans and advances (net) of N2.1 trillion, up 14.7% (Dec 2015: N1.8 trillion)
The Key Ratios indicated that, Post-tax return on average equity of 3.0% (Dec 2015: 2.8%); Post-tax return on average assets of 0.4% (Dec 2015: 0.4%); Net-interest margin of 8.8% (Dec 2015: 8.1%); Cost to income ratio of 47.0% (Dec 2015: 61.3%); NPL ratio of 24.4% (Dec 2015: 18.1%); 52.7% liquidity ratio (FirstBank (Nigeria)) (Dec 2015: 58.6%); 17.8% Basel 2 capital adequacy ratio ((FirstBank (Nigeria)) (Dec 2015: 17.1%); 22.6% Basel 2 CAR (FBN Merchant Bank) (Dec 2015: 23.0%)
The group confirmed that African Development Bank (AfDB) approved $300 million to refinance FirstBank’s trade finance transactions during the period while it also overhauled the Risk Management framework and governance of the Commercial banking group
FirstBank was said to have sustained its leadership as the only financial institution in Nigeria to achieve 100 million electronic-banking transactions per month.
Commenting on the results, UK Eke, the Group Managing Director said: “2016 has been a year characterised by significant uncertainty in the operating environment. Despite this, FBNHoldings has delivered a solid performance while focusing on addressing the pre-existing issues in the loan book which resulted in the current loan loss. This performance has been achieved through ongoing initiatives in driving efficiency across the various businesses, transforming the risk management and control environment, containing cost, as well as enhancing revenue generation from the banking and non-banking subsidiaries.
“We expect an improved economic environment through 2017 and are confident that the foundations we have put in place will drive improved financial performance and consequently enhance shareholder returns.”
Commenting on the results Dr. Adesola Adeduntan, the MD/CEO of FirstBank and subsidiaries said: “The Commercial Banking group has delivered a robust performance with a 15.6% y-o-y growth in gross earnings to N535.5 billion in a challenging operating environment while addressing the quality of the asset portfolio and overhauling the group risk management governance and architecture.
During the year, we strengthened leadership in key business areas ensuring we have the appropriate skillset in place to drive us forward. We remain resolute in our commitment to transform the bank’s risk management approach towards sustainable improvement in asset quality, enhancing the revenue generation capacity of our business and optimising costs. In all, we will ensure profitable growth of the group leveraging technology to drive innovation as we position for improved performance.”