FBN Holdings Plc, the holding company of Nigeria’s premier bank, First Bank of Nigeria Limited has posted a 48 per cent rise in profit after tax (PAT) of N56.536 billion for the half year ended June 30th 2022, up from N38.1billion in the prior year, 2021.
In its half year financials on the Nigerian Exchange Limited, the holding company said its profit before tax (PBT) grew by 45.3 per cent to N65.7 billion in 2022 up from N45.2 billion in 2021 financial year.
The huge growth in profitability was driven by 22.4 per cent growth in gross earnings which rose to N359.2 billion in half year 2022 from N293.4 billion recorded in the comparable period of 2021.
Also contributing to the growth in profitability was an 18 per cent fall in impairment charges for losses to bad loans, which dropped to N21.7 billion in 2022 from N26.7 billion in the prior year 2021.
Commenting on the results, the Group Managing Director, FBN Holdings Plc, Nnamdi Okonkwo said the company’s performance demonstrated resilient performance despite the challenging operating environment.
The GMD noted that the company has continued to see good progress across its performance metrics, which remain in line with its focus on driving sustainable growth.
“FBNHoldings continues to demonstrate resilient performance despite the challenging operating environment with an impressive improvement in revenue and profitability. For the half year 2022, gross earnings and profit before tax grew by 22% y-o-y and 45% y-o-y to N359.2 billion and N65.7 billion respectively. Furthermore, we continue to see good progress across our performance metrics, which remain in line with our focus on driving sustainable growth”, Okonkwo said.
He added: “The Group remains committed in its transformation drive, which has resulted in stronger balance sheet and better asset quality with non-performing loans closing at 5.4% at H1 2022. Similarly, risk management capability remains robust across the Group supporting the drive for enhanced earnings for sustainable capital accretion. During the period, cost to income ratio remained flat y-o-y despite the inflationary and currency pressure, as we continue to focus on optimising overall efficiency.
Our strategic intent remains unchanged in optimising opportunities that drive growth in revenue, profitability, capital accretion and overall operational efficiency that delivers sustainable value to our stakeholders.”
Also, the Chief Executive Officer of First Bank of Nigeria Ltd, Dr. Adesola Adeduntan, said the group’s flagship commercial banking business remained focus on executing key initiatives to position it for improved profitability in 2022.
“Amidst a challenging operating and dynamic regulatory environment in H1 2022, the Commercial Banking Group remained focused on executing key initiatives to position the Group for improved profitability in FY2022. Our half-year results further reinforced our drive towards our ‘Quantum Profitability Leap’ agenda. Our gross earnings are up 22.6% y-o-y to ¦ 338.5 billion and net interest income up 49.3 % y-o-y to ¦ 152.9 billion respectively.
“On the back of the impressive growth recorded in our top line, our profit before tax recorded a strong growth of 40.0% y-o-y to ¦ 60.0 billion, whilst profit after tax also grew by 42.3% y-o-y to ¦ 53.3 billion as the Bank continues to reap the dividends of the successful restructuring of our balance sheet and revamping of our risk management architecture. We continue to record progress in driving down our non-performing loan ratio which now stands at 5.4% at the end of H1 and we are on target to bring it within the regulatory limit of 5% by end of FY2022.
“As we go into the second half of 2022, I am confident that the Commercial Banking Group will sustain the current momentum of generating impressive returns from the quality risk assets portfolio already created, whilst optimising its balance sheet given changing macro-economic conditions”, Adeduntan said.
He further stated that the group would continue to strengthen its “dominant digital banking capabilities in providing best-in-class services to all segments of our customers across all our footprints in sub-Sahara Africa and beyond.”