FBN Holdings Achieves Remarkable Profit Growth in Q1 2024

FBN Holdings Achieves Remarkable Profit Growth in Q1 2024

FBN Holdings Plc, a leading financial institution, has recently disclosed its unaudited financial results for the first quarter of 2024, showcasing a remarkable performance with a pre-tax profit of N238.5 billion. This figure represents an astounding 325% year-on-year surge from the N56.1 billion recorded in the corresponding quarter of 2023.

One of the key drivers behind this impressive profit growth was the substantial increase in interest income, soaring by 153% year on year to N455 billion, up from N180 billion in Q1 2023. Additionally, the group’s net income witnessed a substantial hike, reaching N208.2 billion, demonstrating a notable 316% increase from N50.1 billion in the previous year’s first quarter.

However, it is worth noting that the group encountered an FX revaluation loss of N108.2 billion during Q1 2024, primarily attributed to an FX trading income of N13.4 billion, resulting in an FX loss of N94.8 billion.

Here are some key highlights from the first quarter of 2024 compared to the same period in 2023:

– Net interest income surged to N228.7 billion, marking a remarkable 104% year-on-year growth from N111.8 billion in Q1 2023.
– Impairment charges escalated to N42.9 billion, indicating a significant 154% year-on-year increase from N16.9 billion in Q1 2023.
– Net interest income after impairment charges reached N185.7 billion, reflecting a notable 96% year-on-year growth from N95 billion in the previous year’s first quarter.
– Net fee and commission income rose to N54 billion, depicting a substantial 53% year-on-year increase from N35.3 billion in Q1 2023.
– Profit before tax surged to N238.5 billion, showing an impressive 325% year-on-year growth from N56.1 billion in the corresponding quarter of 2023.
– Profit after tax increased to N208.2 billion, illustrating a remarkable 316% year-on-year growth from N50.1 billion in Q1 2023.
– Total assets appreciated by 27% to N21.6 trillion in Q1 2024, up from N16.9 trillion as of the fiscal year-end 2023.

The growth in assets was primarily fueled by the substantial increase in customer deposits, which surged by 24% to N13.3 trillion, up from N10.7 trillion at the end of 2023. Furthermore, the group’s loan portfolio expanded by 41% during the quarter, with total loans and advances to customers and banks reaching N11.9 trillion, up from N8.4 trillion as of FYE 2023.

As the bank’s loan portfolio expanded, the rise in interest rates prompted by two Monetary Policy Rate (MPR) hikes during the quarter led to the bank achieving its highest-ever interest income for a single quarter. Moreover, the group’s shareholders’ equity escalated by 10% to N1.92 trillion during the quarter, from N1.75 trillion as of FYE 2023. The group’s retained earnings also saw substantial growth, reaching N794.4 billion compared to N589 billion at the end of 2023.

Despite the increase in shareholders’ funds, FBN Holdings has not fulfilled its target for recapitalization. The group still needs to raise N269.4 billion in new share capital to meet the Central Bank of Nigeria’s mandated minimum capital requirement of N500 billion for an international banking license.

At the close of trading on May 27, 2024, FBNH’s share price stood at N21.10, marking a 3.18% improvement. This positive movement in share price underscores investors’ confidence in the bank’s performance and future prospects.

In conclusion, the first quarter of 2024 has been a robust period for FBN Holdings, characterized by significant profit growth, asset appreciation, and strategic financial development. The bank’s ability to navigate market challenges and capitalize on growth opportunities positions it strongly for sustained success in the dynamic financial landscape.