FBNHoldings Reports 156% Surge in 9-Month PBT to N270 Billion

FBNHoldings Plc, now reporting through Infostride News, has unveiled its financial results for the third quarter ending on September 30, 2023. These figures indicate substantial growth in several key financial metrics, demonstrating the group’s resilience and performance in a challenging economic environment.

The most striking aspect of these results is the notable increase in profit before tax (PBT), which soared by an impressive 156.3%. In numerical terms, the PBT reached an impressive N270.3 billion, compared to N105.5 billion reported for the same period in 2022. This significant growth can be attributed to robust performance in interest income.

Furthermore, the group’s profit after tax (PAT) also exhibited substantial growth, marking a 159.2% increase. The PAT surged to N236.4 billion, up from N91.2 billion recorded in the corresponding period in 2022.

It’s worth noting that these strong financial results come at a time when the Nigerian economy is grappling with rising inflation. The headline inflation rate reached 26.72%, marking a 0.92 percentage-point increase from the previous month’s 25.80%. This data is sourced from the recently published Consumer Price Index (CPI) report for September 2023 by the National Bureau of Statistics (NBS). The inflation surge is primarily attributed to the removal of petrol subsidies and the devaluation of the official exchange rate, both of which have had a significant impact on consumer prices.

Within the inflation basket, food and non-alcoholic beverages held the most substantial share at 13.84%, followed by housing, water, electricity, gas, and other fuels at 4.47%, and clothing and footwear at 2.04%. This inflationary environment underscores the challenges faced by companies in maintaining and growing their profit margins.

Despite these challenges, FBNHoldings Plc, as reported by Infostride News, has achieved remarkable financial results. The group’s gross earnings reached an impressive N922.2 billion, reflecting an 80.1% year-on-year increase from N547.2 billion reported in 2022. The company also posted a net interest income of N377.0 billion, representing a 51.4% year-on-year increase from N249.5 billion recorded in 2022.

Non-interest income, another significant component of the group’s revenue, showed substantial growth, reaching N326.9 billion. This marked an impressive 108% year-on-year increase compared to the figure for September 2022, which stood at N157 billion.

However, operating expenses also saw an increase, reaching N352.3 billion, reflecting a 33.3% year-on-year growth compared to N264.3 billion reported in September 2022.

Nnamdi Okonkwo, the Group Managing Director, highlighted the following:

“Over the period, we have delivered a strong performance and growth enabled by focused execution of our strategic plans. Gross earnings were up by 80.1%, while our profit before tax grew by 156% year-on-year. At the same time, our credit risk portfolio remains healthy, with an NPL ratio of 4.6% and a coverage of 85.4%. Cost to cost-to-income ratio improved to 50% from 65% 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 improve the overall operational efficiency of the Group. We are confident in our continuous progress in generating sustainable value for our shareholders.”

Commenting on the results, Dr. Adesola Adeduntan, Chief Executive Officer of First Bank of Nigeria Limited (Commercial Banking Group), provided insights into their performance:

“In the nine months ended September 30, 2023, FirstBank Group reported impressive financial results, reflecting sustained growth and resilience of the franchise. Our gross earnings at the end of the quarter were N922.2 billion, marking a remarkable increase of 79.8% year-on-year. The substantial increase of 49.3% y-o-y in net interest income reflects our commitment to managing interest rate dynamics effectively and optimizing our interest-earning assets, while the impressive growth of 111.6% y-o-y in non-interest income underscores our success in diversifying the Bank’s revenue streams and providing value-added services to our customers. Growth of 157.9% and 158.2% y-o-y in 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.”

In conclusion, FBNHoldings Plc, as reported by Infostride News, has not only demonstrated impressive financial growth but has also shown resilience and adaptability in the face of a challenging economic environment marked by rising inflation. These results reflect the group’s commitment to delivering value to its shareholders and customers, and its dedication to maintaining a strong position in the commercial banking industry. As they look ahead, they remain focused on sustaining their growth momentum and exploring new avenues for innovation and customer-centric approaches.