FBNHoldings records profit before tax of N270bn in 9 months

FBNHoldings Plc has reported gross earnings of N985.6 billion for the nine months financial year ended September 30, 2023.

The amount represents an increase of 80.1 per cent compared with N547.2 billion achieved in the corresponding period of 2022.

The group’s profit before tax rose to N270.3 billion from N105.5 billion in 2022, representing 156.3 per cent from N105.5 billion recorded the previous year while profit after tax grew by 159.2 per cent to N236.4 billion from N91.2 per cent posted in the preceding year.

Analysis of the result showed that Interest income increased by 71.1 per cent to N633.8 billion against N370.4 billion recorded in the corresponding period of last year while net interest income went up 51.4 per cent to N377.7 billion from N249.5 billion in the preceding year. Non-interest income rose by 108.2 per cent to N326.90 billion against N157 billion in 2022.

Commercial banking segment of the company within the period reported N922.2 billion growing by 79.8 per cent year on year from N512.9 billion achieved in the comparative period of last year.

The bank’s profit before tax went up by 157 per cent to N248.5 billion from N96.4 billion while profit after tax stood at N221.1 billion against N85.7 billion in the preceding year, indicating 158.2 per cent growth year on year.

Commenting on the financial result, the Group Managing Director, FBNHoldings, Nnamdi Okonkwo said “over the period we have delivered a strong performance and growth enabled by focused execution of our strategic plan. Gross earnings were up by 80.1 per cent while our profit before tax grew by 156 per cent year on year. At the same time, our credit risk portfolio remains healthy with an NPL ratio of 46 per cent and a coverage of 85.4 per cent. Cost of income ratio improved to N 50 per cent from 65 per cent in 2022 on the back of enhanced revenue generation as well as effective cost containment initiatives.

“Despite the high inflationary environment we remain committed to leveraging technology, automation and our brand strength to enhance our value proposition, increase revenues and improves the overall operational efficiency of the group. We are confident in our continuous progress in generating sustainable value for our shareholders.”

Also the Chief executive officer First Bank of Nigeria Limited, Commercial banking group) Dr Adesola Adeduntun said “in the nine months ended September 30, 2023, First Bank group reported impressive financial result , reflecting sustained growth and resilience of the franchise.

“Our gross earnings at the end of the quarter were N922.2 billion, making a remarkable increase of 79.8 per cent y-o-y. The substantial increase of 49.3 per cent yoy in net interest income reflects our commitment to managing interest rate dynamics effectively and optimising our interest-earning assets, while the impressive growth of 111.6 per cent y-o-y in non-interest income underscores our success in diversifying the bank’s revenue streams and providing value added services to our customer.

“Growth of 157.9 per cent and 158.2 per cent y-o- y in the profit before tax and profit after tax respectively reflect our commitment to delivering exceptional value to our shareholders and stakeholders.

This performance is a testament to the dedication and hard work of our entire team, and it reaffirms FirstBank’s position as one of the leading players in the commercial banking industry. As we continue to face dynamic market conditions, our agility, risk management capabilities and strategic approach will remain pivotal in sustaining this impressive growth trajectory. Looking ahead, we are committed to sustaining this momentum exploring new growth opportunities through innovation and upholding our core value of customer centricity.”