FBN HOLDINGS PLC. REPORTS GROSS EARNINGS OF ₦160 BILLION FOR THE THREE MONTHS ENDED 31 MARCH 2020

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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 2020.

Income Statement                                                        

  • Gross earnings of 159.7 billion, up 14.5% year-on-year (y-o-y) (Mar 2019: 139.4 billion[1])
  • Net-interest income of 60.3 billion, down 15.9% y-o-y (Mar 2019: 71.7 billion1)
  • Non-interest income of 49.7 billion, up 88.9% y-o-y (Mar 2019: 26.3 billion1)
  • Operating income of 110.0 billion, up 12.2% y-o-y (Mar 2019: 98.0 billion1)
  • Impairment charge for credit losses of 9.7 billion, down 29.9% y-o-y (Mar 2019: 13.8 billion)
  • Operating expenses of 71.6 billion, up 7.9% y-o-y (Mar 2019: 66.4 billion1)
  • Profit before tax of 28.7 billion, up 61.5% y-o-y (Mar 2019: 17.8 billion1)
  • Profit after tax[2] of 25.7 billion, up 62.7% y-o-y (Mar 2019: 15.8 billion1)

Statement of Financial Position

  • Total assets of 7.0 trillion, up 13.2% year-to-date (y-t-d) (Dec 2019: 6.2 trillion)
  • Customer deposits of 4.3 trillion, up 6.7% y-t-d (Dec 2019: 4.0 trillion)
  • Customer loans and advances (net) of 2.1 trillion, up 10.7% y-t-d (Dec 2019: 1.9 trillion)

Key Ratio

  • Post-tax return on average equity 15.3% (Mar 2019: 11.8%)[3]
  • Post-tax return on average assets 1.6% (Mar 2019: 1.1%)3
  • Net-interest margin 6.3% (Mar 2019: 7.7%)
  • Cost to income ratio 65.1% (Mar 2019: 67.7%1)
  • NPL ratio 9.2% (Dec 2019: 9.9%)
  • 30.1% liquidity ratio (FirstBank (Nigeria)) (Dec 2019: 38.2%)
  • 15.3% Basel 2 Capital Adequacy Ratio (FirstBank Nigeria: Dec 2019: 15.5%)
  • 17.1% Basel 2 CAR (FBNQuest Merchant Bank) (Dec 2019: 17.1%)

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

The financial results of Q1 2020 is a further testament of the turnaround of our business which began to manifest in 2019. The Group posted a Q1 2020 PBT of 28.7 billion, representing a growth of 61.5% year-on-year. From an efficiency standpoint, return on average equity increased from 12.4% at year-end to 15.3% at the end of March 2020, while the cost-to-income ratio decreased to 65.1%, in line with our commitment on improving operational efficiency by leveraging technology.

The current situation demonstrates the importance of the deployment of appropriate technology and effectively validates our recent investment in enhancing our capacity in technological innovation and digitisation of our products and services.

We are currently assessing the impact of the COVID-19 pandemic on our business and will update the market as soon as we are able to give guidance for the rest of the year. As a Group, we are progressing with our business continuity plans and all hands are on deck to ensure the safety of our employees and to continue to serve our customers with minimal disruption.

We are united with our government, industry and the wider society in our resolve to flatten the curve of COVID-19 and limit the damage caused by the pandemic.”

Business Groups[1] [2]

Commercial Banking

  • Gross earnings of 151.0 billion, up 15.6% y-o-y (Mar 2019: 130.5 billion)
  • Net interest income of 57.4 billion, down 17.4% y-o-y (Mar 2019: 69.5 billion)
  • Non-interest income of 46.3 billion, up 98.2% y-o-y (Mar 2019: 23.4 billion)
  • Operating expenses of 68.3 billion, up 8.4% y-o-y (Mar 2019: 63.0 billion) 
  • Profit before tax of 25.6 billion, up 54.8% y-o-y (Mar 2019: 16.6 billion)
  • Profit after tax of 21.0 billion, up 54.4% y-o-y (Mar 2019: 13.6 billion)
  • 6.67 trillion, up 13.7% y-t-d (Dec 2019: 5.87 trillion)
  • Customers’ loans and advances (net) of 2.06 trillion, up 10.6% y-t-d (Dec 2019: 1.87 trillion)
  • Customers’ deposits of 4.18 trillion, up 6.8% y-t-d (Dec 2019: 3.91 trillion )

Commenting on the results Dr. Adesola Adeduntan, the Chief Executive Officer of FirstBank Group said:

“We are pleased with the performance of the commercial banking group in the first quarter of 2020, with gross earnings up 15.6% and PBT up 54.8% y-o-y respectively. We have also seen further improvements in our NPL and Cost-to-Income ratios and are now a stronger and more resilient institution, with a significantly enhanced risk management architecture. 

As we commence the execution of the earlier phase of the new 2020 – 2022 strategic plan, we are all aware that we are living through unprecedented times. However, I am confident that we are well equipped to handle the headwinds. We have invested heavily in the last three years to establish our digital banking footprint and with a network of over 53,000 agents across Nigeria as well as over thirteen million customers actively transacting on our digital platforms (FirstMobile and USSD), we have built capacity to continue to offer gold standard services to our customers while safeguarding our staff through the pandemic.”

Merchant Banking & Asset Management (MBAM) / FBNQuest

  • 8.2 billion, down 0.2% y-o-y (Mar 2019: 8.3billion)
  • 3.2 billion, up 183.8% y-o-y (Mar 2019: 1.1 billion)
  • ₦255.0 billion, up 2.6% y-t-d (Dec 2019: ₦248.6 billion)

Insurance

  • ₦11.0 billion, up 43.2% y-o-y (Mar 2019: ₦7.7billion)
  • ₦3.1 billion, up 92.3% y-o-y (Mar 2019: ₦1.6 billion)
  • ₦125.0 billion, up 6.8% y-t-d (Dec 2018: ₦117.0 billion)

– ENDS –

Related document:

The following related document is also available on our website https://www.fbnholdings.com/investor-relations/

  • Q1 2020 financial statements

For further information please contact:

Tolulope Oluwole (Head, Investor Relations)                           

+234 1 905 2720

Tolulope.o.oluwole@fbnholdings.com

– Notes to Editors –

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 re-organisation 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 asset management as well as insurance. The Group, with about 8,685 staff has 894 business locations (615 local branches, 144 QSPs and agencies for FirstBank (Nigeria) and 135 (local and international) subsidiary locations). FBN Holdings Plc. is structured essentially under three business groups, namely: Commercial Banking, Merchant Banking and Asset Management as well as Insurance.

Commercial Banking comprises First Bank of Nigeria Limited, FBNBank (UK), FBNBank DRC[1], bank subsidiaries in West Africa[2], a representative office in Beijing, a branch office in Paris as well as First Pension Fund Custodian. This group provides both 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 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 subsidiaries FBN Funds Limited and FBN Capital Partners Limited. The group creates value by providing advice, finance, trading, investing and securing services to large institutions (corporations and government agencies) and individuals.

Insurance comprises FBN Insurance Limited and FBN General Insurance Limited (both owned by FBNHoldings 65% and Sanlam 35%) as well as FBN Insurance Brokers (100% owned subsidiary). The business group offers Life and General insurance services as well as insurance brokerage services.

Cautionary note regarding forward looking statements

This release contains forward-looking statements which reflect management’s expectations regarding the Group’s future growth, results of operations, performance, business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expects”, “intend”, “estimate”, “project”, “target”, “risks”, “goals” and similar terms and phrases have been used to identify the forward-looking statements. These statements reflect management’s current beliefs and are based on information currently available to the Group’s management. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking statements. These factors or assumptions are subject to inherent risks and uncertainties surrounding future expectations generally. Forward-looking statements therefore speak only as of the date they are made.

FBNHoldings cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and undue reliance should not be placed on the forward-looking statements. For additional information with respect to certain risks or factors, reference should be made to the Group’s continuous disclosure materials filed from time to time with the Nigerian Stock Exchange. The Group disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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