Business
FBN Holdings Reports Remarkable Growth in Unaudited Pre-Tax Profit for FY 2023
FBN Holdings Reports Remarkable Growth in Unaudited Pre-Tax Profit for FY 2023
FBN Holdings, a leading financial services group in Nigeria, has recently released its unaudited, condensed financial statements for the fiscal year 2023. The report reveals a significant surge in the group’s performance, with a pre-tax profit of N362.24 billion, showcasing a remarkable 129% growth from the previous fiscal year.
Key Financial Highlights
The financial statements for FY 2023 demonstrate the group’s robust performance across various key metrics:
1. Profit Before Tax: The group’s pre-tax profit soared to N362.24 billion, marking a substantial 129% increase from the N157.90 billion reported in FY 2022.
2. Interest Income: FBN Holdings recorded an interest income of N917.71 billion in FY 2023, reflecting a notable 66% surge from the N551.94 billion reported in FY 2022.
3. Exchange Rate Gain: The group realized a gain of N251.10 billion attributable to the devaluation of the Naira, primarily arising from exchange differences in the translation of its foreign operations.
4. Total Assets: FBN Holdings’ total assets surged to N16.90 trillion, representing a remarkable 60% growth from the N10.58 trillion reported in FY 2022.
5. Revenue Distribution: The commercial banking group, First Bank of Nigeria Limited, contributed 93% (N1.42 trillion) of the group’s total revenue (N1.52 trillion) in FY 2023.
Strategic Insights
The impressive financial performance can be attributed to several strategic initiatives and market dynamics:
1. Revenue Diversification: The substantial growth in interest income and net fee and commission income underscores the effectiveness of FBN Holdings’ revenue diversification strategy.
2. Exchange Rate Dynamics: The gain attributable to the devaluation of the Naira highlights the group’s ability to navigate and capitalize on exchange rate fluctuations in its foreign operations.
3. Asset Expansion: The significant increase in total assets and loans and advances to customers and banks signifies the group’s proactive approach to expanding its asset base and driving lending activities.
Leadership Transition
In a recent development, Femi Otedola has been appointed as the new Chairman of FBN Holdings Plc, leveraging his substantial individual shareholding of 5.57% in the bank. Notably, Barbican Capital Limited holds the most significant shareholding at 13.61%.
Looking Ahead
The outstanding financial performance and strategic leadership transition position FBN Holdings for continued growth and resilience in the dynamic financial landscape. The group’s unwavering commitment to value creation and prudent financial management is evident in its remarkable achievements for FY 2023.
As FBN Holdings continues to navigate evolving market conditions and drive sustainable growth, stakeholders can anticipate further value creation and strategic advancements under the leadership of Femi Otedola and the existing management team.
In conclusion, FBN Holdings’ exceptional financial results for FY 2023 underscore its position as a key player in the Nigerian financial sector, reflecting a robust growth trajectory and a commitment to delivering long-term value to its stakeholders.
