FBN Holdings posts N33.5bn profit — despite high inflation

FBN Holdings Plc (FBNHoldings) says its profit margin increased by 13.7 percent year on year (y-o-y) for the half year ended June 2018, “despite high inflationary environment”.

This is contained in the group’s unaudited results, which were largely positive for the period under review.

According to the results, profit after tax rose to N33.5 billion, up from N29.5 billion recorded in June 2017. 

As a group, gross earnings stood at N293.3 billion, up 1.6% y-o-y, compared to  N288.8 billion recorded in June 2017.

The group’s commercial banking operations accounted for the largest contribution to gross earnings and profit before tax at 90.2 percent and 84.0 percent respectively. 

Commenting on the results, UK Eke, group managing director, FBNHoldings said: “FBNHoldings continues to make steady progress towards delivering on its strategic targets. This has been demonstrated with a 13.7% y-o-y increase in profit after tax, 21.4% y-o-y growth in non-interest and 15.4% y-o-y decline in impairment charge.” 

Clearly, the group is on its way to delivering its promises on asset quality, enhancing revenue generating capacity through non-interest income and driving further efficiencies.”

Highlighting key figures from the result, Adesola Adeduntan, managing director of FirstBank, said performance was “relatively strong despite high inflationary environment.”

“The Commercial Banking Group reported a relatively strong set of results and I am pleased to report consistent improvement towards our strategic objectives,” he said.

“This is reflected in a strong 28.5% y-o-y increase in non-interest income, 15.5% y-o-y reduction in the impairment charge and a marginal increase of 0.9% y-o-y in operating expenses, despite the high inflationary environment. 

“It is clear that our efforts to enhance our revenue generating capabilities, strengthen the risk management and control environment as well as to optimise efficiencies within our business are paying off.”