…PBT doubles, NPL Now 4.7%
…FBN Holdings Plc doubles profit before tax to N106 billion
FBN Holdings Plc. (FBNHoldings) has announced its unaudited results for the nine months that ended September 30, 2022.
Financial Highlights
| Income Statement | |||||||
| (₦ billion) | 9M 2022 | 9M 2021 | ∆% | Key Ratios % | 9M 2022 | 9M 2021 | |
| Gross earnings | 547.2 | 432.6 | +26.6% | Post-tax return on average equity6 | 13.7 | 7.2 | |
| Interest income | 370.4 | 260.1 | +42.4% | Post-tax return on average assets7 | 1.3 | 0.7 | |
| Net-interest income | 249.5 | 163.0 | +53.1% | Earnings yield8 | 8.1 | 7.0 | |
| Non-interest income[1] | 157.0 | 154.6 | +1.6% | Net-interest margin9 | 5.4 | 4.4 | |
| Operating income[2] | 406.6 | 317.6 | +28.0% | Cost of funds10 | 2.1 | 1.9 | |
| Impairment charges for losses | 36.7 | 34.8 | 5.4% | Non-interest revenue/operating income | 38.6 | 48.7 | |
| Operating expenses | 264.3 | 229.5 | +15.2% | Cost to income11 | 65.0 | 72.2 | |
| Profit before tax | 105.5 | 52.9 | +99.3% | Gross loans to deposits | 56.6 | 52.8 | |
| Profit for the period [3] | 91.2 | 40.8 | +123.6% | Capital adequacy (FirstBank (Nigeria)[4] | 15.6 | 15.5 | |
| Basic EPS (kobo)[5] | 251 | 112 | +124.5% | Capital adequacy (FBNQuest Merchant Bank) | 15.7 | 21.1 | |
| Statement of Financial Position | NPL/Gross Loans | 4.7 | 7.3 | ||||
| (₦ billion) | 9M 2022 | FY 2021 | ∆% | NPL coverage12 | 75.1 | 50.2 | |
| Total assets | 9,852.8 | 8,932.4 | +10.3% | PPOP13/impairment charge (times) | 3.9 | 2.5 | |
| Customer loans & advances (Net) | 3,599.5 | 2,881.9 | +24.9% | Cost of risk14 | 1.5 | 1.8 | |
| Customer deposits | 6,600.6 | 5,849.5 | +12.8% | Book value per share | 24.9 | 21.0 |
Nnamdi Okonkwo, the Group Managing Director commented: said: “FBNHoldings has again in Q3 2022 delivered a stellar performance, growing sustainable income from our core businesses. This is a testament to the success of our focus on carefully growing the business and driving profitability. As a result, Gross earnings grew 26.6% y-o-y to N546.2 billion, while profit before tax doubled y-o-y to N105.5 billion. I am particularly delighted by the significant improvement in our credit risk portfolio. Specifically, the NPL ratio closed at 4.7% within the regulatory threshold of 5%, while the coverage ratio increased to 75.1% from 62.2% in FY 2021. Furthermore, during the period under review, in attestation of the progress made by the Group, Fitch upgraded the credit ratings of FBNHoldings and FirstBank to ‘B’ with a Stable Outlook.
Value creation remains our overarching objective as we continue to leverage the strengths of our unique brand and heritage to optimise our diverse business portfolio. We are confident of making further progress, with the capacity to generate sustainable performance that delivers superior returns to all our stakeholders.”
- ₦512.9 billion, up 27.5% y-o-y (Sep 2021: ₦402.2 billion)
- ₦248.5 billion, up 55.7% y-o-y (Sep 2021: ₦159.6 billion)
- ₦138.5 billion is flat y-o-y (Sep 2021: ₦138.8 billion)
- ₦253.0 billion, up 16.2% y-o-y (Sep 2021: ₦217.7 billion)
- ₦96.4 billion, up 119.1% y-o-y (Sep 2021: ₦44.0 billion)
- ₦85.7 billion, up 142.1% y-o-y (Sep 2021: ₦35.4 billion)
- ₦9.4 trillion, up 10.1% y-t-d (Dec 2021: ₦8.5 trillion)
- ₦3.5 trillion, up 24.5% y-t-d (Dec 2021: ₦2.8 trillion)
- ₦6.4 trillion, up 13.2% y-t-d (Dec 2021: ₦5.6 trillion)
Commenting on the results, Dr. Adesola Adeduntan, Chief Executive Officer of First Bank of Nigeria Limited (Commercial Banking Group) stated: “The performance of the Commercial Banking Group for the nine months ended September 30, 2022, has again shown that the Group is making progress in the pursuit of its ‘Quantum Profitability Leap’ agenda. The improved profitability during the period under review further reinforces the Bank’s commitment to its growth aspirations despite the challenging market conditions.
Our gross earnings are up 27.5% y-o-y to ₦512.9 billion, and net interest income up 55.7 % y-o-y to ₦248.5 billion respectively. On the back of the impressive growth recorded in our top line, our profit before tax recorded another strong growth of 119.1% y-o-y to ₦96.4 billion, whilst profit after tax also grew impressively by 142.1% y-o-y to ₦85.7 billion as the Bank continues to reap the benefits of the changes to our business model in addition to revamping of our risk management and control architecture.
We continue to record progress in driving down our non-performing loan ratio, which has now come down to 4.86% at the end of the third quarter, within the regulatory limit of 5%. This is the first time since 2015 that we would be within the regulatory limit, and we achieved this ahead of our initial target of Q4 2022.
In a further testament to the ongoing turnaround and repositioning of the Parent and Banking Group, Fitch, following the conclusion of their review during the quarter, announced the upgrade of FBNHoldings and FirstBank’s Long-Term Issuer Default Ratings (IDRs) to ‘B’ from ‘B-‘, with Outlook Stable. This has aligned our credit rating to our Tier 1 peers and the sovereign and has further positioned the Group for more market opportunities.
We remain confident that as we go into Q4 2022 and plan for the new year, we will continue to strengthen our franchise capabilities and offerings across all our markets, not only to withstand the current headwinds but also continue to deliver top-end value-adding products and services to our esteemed customers and other stakeholders.”
Merchant Banking & Asset Management (MBAM) / FBNQuest
Unaudited 9M 2022 Financial Statements, click here to view the unaudited 9M 2022 financial statements on FBN Holdings Plc’s website.
What To Know About FBN Holdings Plc and Group: FBN Holdings Plc. (ISIN: NGFBNH000009) is the most diversified financial services group in Nigeria. FBN Holdings Plc. was incorporated in Nigeria on 14 October 2010, following the business reorganisation of the FirstBank Group into a holding company structure. The Company was listed on the Nigerian Stock Exchange under the ‘Other Financial services’ sector on 26 November 2012 and now has in issue and fully paid-up share capital of 35,895,292,792 ordinary shares of 50 kobo each (N17,947,646,396). More information can be found on our website www.fbnholdings.com.
The subsidiaries of FBNHoldings offer a broad range of products and services across Commercial banking in 10 countries (Lagos, Nigeria; London, United Kingdom; Paris, France; Beijing, China; Kinshasa, Democratic Republic of Congo, Accra, Ghana; Banjul, Gambia, Conakry, Guinea, Freetown, Sierra Leone and Dakar, Senegal), Merchant Banking and Capital Markets, Trusteeship as well as an Insurance brokerage. The Group, with about 8,248 staff has 827 business locations (591 local branches, 144 QSPs, and agencies for FirstBank (Nigeria) and 92, (local and international) subsidiary locations).
Commercial Banking comprises First Bank of Nigeria Limited, FBNBank (UK), FBNBank DRC, bank subsidiaries in West Africa17, a representative office in Beijing and Paris, as well as First Pension Fund Custodian. This group provides individual and corporate clients/customers with financial intermediation services. This business segment includes the group’s local, international and representative offices with operations in 10 countries offering commercial banking services.
Merchant Banking & Asset Management comprises FBNQuest Merchant Bank group, FBNQuest Capital group, and FBNQuest Trustees Limited. These are wholly owned by the holding Company. The FBNQuest Merchant Bank group comprises FBNQuest Merchant Bank and its subsidiaries, FBNQuest Securities Limited and FBNQuest Asset Management Limited. The FBNQuest Capital group comprises FBNQuest Capital Limited and its subsidiary FBN Funds Limited. The group creates value by offering investment and risk management products, managing funds, administering assets, and trading securities. It caters to the clients’ various advisory, funding, and investment needs spanning Federal and State Governments, corporates, and high-net-worth individuals (HNIs).
