FBN Holdings posts N862bn profit before tax — up by 142%

FBN Holdings says its profit before tax (PBT) rose to N862 billion at the end of 2024.

The figure represents a 142 percent PBT increase, according to FBN Holdings’ unaudited financial statement for the year ended December 31, 2024.

The bank said its total assets increased to N26.54 trillion — up from N16.94 trillion — as interest income surged by 155 percent to N1.39 trillion year-on-year.

“The outstanding financial results showcase significant growth across multiple key metrics,” the company said in the statement.

“The strong growth recorded on net interest income is a testament to FBN Holdings Plc’s resilience and ability to deliver value in a competitive and evolving market landscape.

“It is noteworthy that but for the impairment charge of N411 billion, the PBT would have been N1.3 trillion.

“The Group also recorded a higher average earnings yield of 16.71% on the back of growth in loan volume and other earning assets for the year compared to 10.69% in 2023 despite the higher cost of funds (5.79% in 2024: 3.36% in 2023).”

FBN Holdings said the net interest margin (NIM) improved from 6.11 percent in 2023 to 9.61 percent in 2024.

The company said the high-rate environment reflects the CBN’s hike in the monetary policy rate (MPR) “over the period from 18.75 percent as at December 2023 to 27.25 percent as at December 2024”.

“Non-interest income rose by 43.3% to N846.9 billion compared to N255.8bn in 2023,” the bank said.

According to the financial statement, the non-interest income growth of the bank was driven by growth in fee and commission income “and key to this were income on fund transfer, intermediation and fees on digital channels which recorded impressive transaction volumes during the year”.

The financial institution said loans and advances to customers also grew by 42 percent.

This, FBN Holdings said, was due to new loans to customers from the commercial banking group and “the impact of naira depreciation on foreign currency-denominated loans and advances”.

“The Group has continued to maintain its strong risk management stance, ensuring the resilience of its business, especially in the volatile business environment,” the company added.

“Deposit liabilities grew by 62% from the commercial Banking Group on account of continuous deposit mobilization, supported by investments in digital banking capabilities, brand recognition, and impact of naira depreciation on translation of FCY denominated deposits.”

The company expressed confidence that the financial performance will be sustained to improve its shareholder value. 

FBN Holdings said it is committed to further enhancing revenue and profitability by strengthening its value proposition, refining its governance model, and maximising operational efficiencies.